Korean Air operates a hierarchical structure, which is a typical trait of a Korean company. Their organisational structure is systematic, with many divisions according to their functions, such as separate divisions for passenger and cargo.
Resource planning is key for Korean Air to identify present and future resources and their needs. During the COVID-19 pandemic, Korean Air suffered from a liquidity crisis. To ensure they would overcome the pandemic, they secured KRW 2.2 trillion worth of funds and government aid. This will help Korean Air to survive from the effects of the pandemic, and establish new strategies to further improve profitability.
Korean Air implemented a strategy through launching a joint venture with Delta Air Lines in 2018. This allowed competitiveness to the airlines in the trans-Pacific market, this is achieved through increased capacity and enhancement of transfer convenience at Incheon International Airport, and major joint venture hub airports in the United States.
Korean Air is strategic in improving infrastructure. The airline understands how important it is to respond quickly to digital transformation, and they transferred their entire IT system to the cloud. The basis of this was to enhance customer experience and improve satisfaction. The system also aids in improving air cargo, and passenger demand forecasting.
Korean Air's strategies are proving to be successful. The airline holds the largest market share in South Korea, of 22.4%, which is only expected to grow after the Asiana acquisition.
Due to the quick strategic decision of focusing on cargo throughout the COVID-19 pandemic, Korean Air were able to record an operating profit in 2020 of KRW 238.3 billion (USD 219 million), whilst other airlines suffered (Korean Air Newsroom, 2021).
Korean Air is a successful airline, and will only become more successful after acquiring Asiana. It is important for the management to make smart strategic decisions in order to expand, in terms of profitability and customers.