 |
 |
The year 2008 was a challenging year for all sectors of the business world. Oil prices skyrocketed to record highs before falling towards the end of the year, the effects of the financial crisis in the U.S. spilt over into the global economy, bringing about widespread economic recession, and foreign exchange rates were on a roller coaster throughout the year. Amid such adversity, Korean Air suffered an operating loss of KRW 99.3 billion due to surging fuel costs and increased expenses related to fluctuations in foreign currency rates, but despite such difficulties, we exerted every effort to create new demand and expand our sales base. As a result, operating
|
revenues surpassed KRW10 trillion for the first time in Korean Air's 40-year history, and the realization of 16% growth year-on-year In the passenger transport sector, we offered new routes to Munich, Tashkent and Milan, completing a network that connects 18 cities in 15 European countries. We also returned to the South American market with the resumption of service to Sao Paolo, Brazil. In the cargo transport sector, we added a route to Navoy, Uzbekistan and are currently an active participant in the Uzbekistani government's ambitious plans to make the Navoy Airport a hub for Central Asia. Our flights to this airport are an important step in the realization of this goal for Uzbekistan.
Along with these efforts to build a sustainable future for the company, Korean Air has created a new paradigm for sustainable management practices through its initiatives to harmonize economic, social and environmental values. In fact, our endeavors to fulfill Korean Air's responsibilities to its various stakeholders were widely recognized. For example, we topped IATA's global rankings for commercial cargo transport for the fifth year in a row, we were named the top airline in passenger transport for “Global Customer Satisfaction” by the Japan Management Association, and our in-flight meal service was awarded for “Outstanding Food Service by a Carrier” by PAX International Magazine and was also honored by the Korean Ministry for Food, Agriculture, Forestry and Fisheries. To further enhance our control of food safety, we sponsored, in cooperation with Inha University, the establishment of the Food Safety Research Centerto ensure the highest quality and safety of our in-flight meals.
Fully aware of our social responsibilities, we at Korean Air are committed to protecting the environment, sharing with others, and maintaining transparent and ethical management practices. Having joined the UN Global Compact in 2007, we have pledged to abide by ten principles in the human rights, labor, environment, and anticorruption categories. In June of 2008, we adopted the “SkyTeam Corporate Social Responsibility Statement” and are implementing environmental policies to address global warming and the depletion of fossil fuel reserves. In order to reduce emissions of CO2, the main culprit in global warming, we are replacing our fleet with fuel-efficient and environment-friendly next-generation airplanes and developing more efficient operational procedures to reduce fuel consumption. We have also been expanding our initiatives in terms of sustainable development year after year, for example, with reforestation projects in regions such as Baganuur, Mongolia and Kubuchi, China, where desertification is in progress due to climate change. Our promotion of cultural activities includes the sponsorship of Korean language services at the world-famous Louvre, British and Hermitage Museums.
The year 2009 is a truly significant year for Korean Air as it marks our 40th anniversary.
In this year, we will diligently pursue sustainable growth through management activities aimed at enhancing Korean Air's efforts on the economic, social and environmental front while seeking new opportunities for value creation for Korean Air and its stakeholders. We invite you to journey with us as we take a giant leap forward to a brighter future, one that will extend our glorious 40-year history to another 40 years of excellence.
Thank you.
|
Environmental Management / Greeting of Chief 
