Korean Air Suspends Boeing 777-300 Refit Program
Korean Air has paused its ambitious $215 million initiative to retrofit 11 Boeing 777-300 jets with Premium Economy seating. This decision comes in response to regulatory challenges and public disapproval of the planned cabin modifications.
Program Details and Modification Plans
- The Seoul-based airline, near Incheon International Airport (ICN), completed one retrofit before stopping the rest of the project.
- The refit aimed to add 40 Premium Economy seats on each aircraft.
- Changes included shifting Economy Class from a 3-3-3 to a 3-4-3 layout, aligning with global industry practices.
The goal was to enhance competitiveness with airlines that have successfully introduced Premium Economy cabins. Despite being a strategy adopted since the early 1990s by airlines such as Taiwan’s EVA Air and Virgin Atlantic, Korean Air faced significant headwinds in its implementation.
Historical Context and Adoption
- Premium Economy was innovated by carriers including British Airways and Japan Airlines.
- Although some initially feared it might impact Business Class sales, it gained popularity, with Emirates joining in 2021.
Korean Air, a late adopter like Emirates, found its plans thwarted amid ongoing debates about passenger benefits versus financial gains.
Regulatory Challenges
The Korea Fair Trade Commission (FTC) expressed concerns that introducing Premium Economy might breach the terms of Korean Air’s merger with Asiana Airlines. Pledging not to increase fares on 40 major routes was part of these terms. The FTC viewed Premium Economy as a fare hike on reserved routes, intensifying regulatory scrutiny.
Opposition from Passengers and Lawmakers
A strong backlash, both from the public and lawmakers, arose against the capacity changes needed for the new seating. Korean Air had maintained a less dense 3-3-3 configuration for Economy Class, which would give way to a denser 3-4-3 layout.
- Passengers perceived the alteration as a reduction in seating comfort.
- Lawmakers criticized the move, alleging prioritization of corporate gain over passenger convenience.
Future Projection
The only refitted aircraft currently serves the Seoul (ICN) to Singapore (SIN) route. Korean Air has not disclosed plans concerning other Boeing 777-300 aircraft. The suspension highlights the complex equilibrium airlines must maintain among innovation, regulatory demands, and customer satisfaction.
