Airline Weekly | International : Analytical : Essential

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Asiana

Annual revenues:	$3,868m
Annual operating profit:	$182m
Annual net profit:	$113m
Operating profit margin:	5%

(Figures are from the period of JAN07-DEC07 in U.S. dollars.)

Strengths and opportunities:
- Seoul ideally situated as a gateway to China
- Many ethnic Koreans living and working in China
- Korean economy benefiting from proximity to China and Japan
- Large numbers of Koreans living and studying in the U.S.; large U.S. military presence in S. Korea
- Large outbound tourist market; Jeju island a big domestic tourist spot
- Owned by large conglomerate able to cross-subsidize operations if needed
- Well regarded for customer service
- Large cargo operation
- North Korea will eventually open and provide new opportunities to South Korean carriers
- Member of the Star Alliance
- New A350s on the way

Weaknesses and threats:
- Low-cost competition may come soon
- Korean Air a tough competitor
- Chinese rivals have lower costs
- Seoul a much smaller local market than Tokyo, Beijing and Shanghai
- Strong unions
- High-speed trains depressing domestic traffic

Financial data is sourced from company reports. The strengths and weaknesses are based on an analysis by Airline Weekly's editors. Information provided on airlineweekly.com is for general informational purposes only and should not be construed as investment advice.

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