South Korea's Asiana to Cut Unprofitable Routes, Fleet Size In Revamp Bid

South Korea’s cash-strapped Asiana Airlines Inc plans to cut unprofitable routes and the size of its fleet to improve its financial health, Chief Executive Han Chang-soo said in a letter to employees on Monday. Han’s co-chief executive resigned on Thursday and its debt-ridden parent Kumho Asiana Group sought financial support from its biggest creditor after an accounting fiasco triggered warnings of credit rating downgrades, Reuters reported. He also said the company would sell more assets to secure liquidity, but did not elaborate. The letter, distributed publicly by the airline, did not detail routes to be cut or the resulting size of the fleet. “I am desperate to create a stable management environment. We need to restore trust through bold innovation,” Han said in the letter. Analysts say Asiana is expected to reduce maintenance costs by getting rid of planes it has leased. Read more

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