The airline industry
Given the continued rise and development of the hospitality sector, more opportunities are present for job seekers who want to work in the industry. Seeing such trends, I wish to desire working in a hospitality sector particularly the airline industry. This is due to its dynamic and continued initiative to improve comfort and travel among its target – airline passengers. The specific airline that I wish to work with is Korean Air. I am currently working in the company, and if ever given the opportunity, I want to work there full time.
I believe that Korean Air can give me not only the training and experience but also the skills to make me competitive in the hospitality sector. Working as a ticket agent in Korean Air made me realize the company’s potential to grow and provide the passengers need. With these it may be good to look at the company’s workforce and actively participate in the company’s initiative to develop. If given the chance, I would like to be a part of the Korean Air workforce and create a good stepping stone and experience during my career.
I chose this company for several reasons. These include (1) productivity, (2) history, and (3)
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“Despite Korean Air Lines’ immense endeavors to secure its success by introducing new aircraft and expanding international routes, the intergovernmental enterprise failed again due to inefficient management skills. ” (Korean Air, Company info…, 2008) Due to this, the company was forced to privatize. Such initiative proved to be the turnaround needed by the airline company to grow. “In nearly 35 years, it has grown 150 times and is poised to continue that growth into the next millennium. ” (Korean Air, Company info…, 2008) Such initiative and development catapulted the company in becoming one of the preferred services in the airline industry.
In addition, the company boasts several achievements that put it above the rest of its counterparts. These things provide an added boost in the pursuit of the company for excellence and airline development. “In April and July 2007 respectively, the carrier was named the Best Economy Class in the OAG Airline of the Year Awards and the Skytrax 2006/7 World Airline Awards. ” (Korean Air, Press…, 2008) With regards to its workforce, the company caters to more than 15,000 competent and aggressive workers that pave the way for the continued growth of the company.
The diverse specializations of its workforce create an active avenue for people to enjoy the optimum satisfaction and comfort that they need in traveling. “As of Jan. 17, 2008, a total of 16,825 Korean Air employees work to serve your needs. ” (Korean Air, Overview…, 2008) It is through this that workers and job seekers continue to apply at the agency due to its relatively competitive environment. Moreover, the company operates under an organization run by different directors which directly reports to the CEO and president.
Every division has its corresponding arm that oversees and looks into the issues of the department. By addressing these departmental goals, the company can operate and function normally and integrate important and vital commitments to increasing airline competitiveness. In the statistical report of the company in the 4th quarter of 2007, there has been an increase in the salaries for workers from 258, 489 to 269,070. (Korean Air, 4Q Financial…, 2008) The increase of 4. 1% is due to increased productivity and at the same time anticipation of the rising inflationary costs in the economy.
The payment scheme for the company is dependent on the skills and the relative positions of its workforce. It is commensurate in the level of expertise an employee has. As far as trends are concerned, Korea Air has been consolidating its efforts to enhance competition by incorporating several strategies aimed at increasing profits, decreasing costs and enhancing productivity. These initiatives in turn have been considerably good for the company as it proved to increase profits and generate income for the airline industry.
“Net income for the three months ended Dec. 31 rose to 75. 7 billion won, or $80. 8 million, from 29. 4 billion won a year earlier, the Seoul airline said Wednesday. ” (Cha, 2007) Such proved to be an important step for the boost of an Asian airline company like Korea Air. The current market trends seem to dictate the need for expanding and acquiring new networks that will cater to new avenues for investment and income. Realizing this, Korea Air created and increased new flight paths where its target clients are many.
Such increase created an active and vital part of the company’s growth during the last quarter. One important initiative was the creation of networks in China. Realizing the development of the Chinese economy and its relative competitiveness, Korea Air shall invest heavily on the country with the promise of increased market and attracting new investors in the company. “Korean Air will increase the number of flights from Shanghai Hongqiao Airport to Gimp from the current one a week to two after the expansion of Shanghai Hongqiao Airport is completed in 2010. ” (China Hospitality News, 2008)
Another contemporary trend is the increased clamor for environmental responsibility for companies in pursuit of the different amendments and treaties concerning protection. Environmental sustenance has now been another important tenet of the company as it seeks to follow and implement these policies. One vital initiative is the creation of increased realization concerning air pollution. “In order to further reduce the air pollution, we are continuously replacing the ground vehicles used for maintenance with new ones through regular smog checks, and plan to replace 20% more vehicles in the near future.
” (Korea Air, Environment.. , 2008) Also, there are initiatives and programs created by Korea Air to efficiently and effectively address the issues revolving around the maintenance of fuels and control of substances and chemicals. “In an effort to minimize environmental impact caused by chemical products used in aircraft maintenance and wastewater treatment, Korean Air has implemented procedures and guidelines relating to the handling of chemical products and has continuously carried out safety education/training for relevant personnel. ”(Korea Air, Environment..
, 2008) Moreover, through the years there had been continued increase of environmental initiatives among members of the company. These initiatives on one hand showcase an increase in the profitability and the realization that to do so, the company has to expedite further changes. “Efforts from each division contribute to the preservation of the environment as well as the increase of corporate profitability. ” (Korea Air, Environment.. , 2008) Given these improvements and initiatives, several changes remain to be an impediment in the company’s continued growth.
One important impediment in the process of further development is the continued rise of fuel prices over the past year. Fuel prices have been dramatically increasing and have created several losses and hampers in the growth. “”Fuel has a terrible, big impact,” he said, noting that the carrier will pay $500 million more in fuel expense in 2006 than it did last year. ” (ATW Daily News, 2006) This in turn should be addressed by the company accordingly to avoid further impediments in growth.
To address these, the company has setup several initiatives aimed at promoting and increasing fuel efficient mechanisms among its planes and logistic operations. One important initiative is to create and acquire several oil firms to have a discounted and ample amount of fuel supply necessary to pursue operations. “The airline plans to buy a 28. 4 percent stake in S-Oil, South Korea’s third- largest refiner, to get a stable supply of fuel, it said on Jan. 15. ” (Cha, 2008) In addition, fuel hedging remains to be another option for the company.
“The company planned to increase its use of hedging to as much as 70 percent over the next 12 months to guard against future rises in fuel prices, it said in November. ” (Cha, 2008) Realizing this, there have been continued efforts by members of the company to continually attract investors and give opportunities to job seekers in joining the industry. The capabilities and advancements of this airline industry pleased my standards. These reasons are the very foundation on as to why I want to work and gain experience in this company.
ATW News (2006) Other News. Retrieved April 29, 2008 from http://www.atwonline. com/news/other. html? issueDate=10/18/2006 BDL Media. (2008) Korean Air Aims at West China Routes in China Hospitality News. Retrieved April 29, 2008 from http://www. chinahospitalitynews. com/2008/04/28/6185-korean-air-aims-at-west-china-routes/ Cha, S. (2007) Korean Air Profits Soar in International Herald Tribune. Retrieved April 29, 2008 from http://www. iht. com/articles/2007/01/24/bloomberg/sxkal. php Korea Air. (2007) Company Info/ History. Retrieved April 29, 2008 from http://www. koreanair. com/local/na/gp/eng/au/ci/eng_au_ci_ht. jsp Korea Air. (2007) Environmental Management / Effect Management.
Retrieved April 29, 2008 from http://www. koreanair. com/local/na/gd/eng/au/en/eng_au_en_02. htm Korea Air. (2007) 2007 4Q Financial Results. Retrieved April 29, 2008 from http://www. koreanair. com/img/download/Investor_Relations/2007_4Q_Financial_Results_Final. pdf Korea Air. (2007) Overview/Company Information. Retrieved April 29, 2008 from http://www. koreanair. com/local/na/gd/eng/au/ci/eng_au_ci_ov. htm#4 Korea Air. (2007) Press Release: Korean Air operating performance remains strong in 2007. Retrieved April 29, 2008 from http://www. koreanair. com/local/na/gd/eng/au/pr/global_eng_au_pr_080201. htm