American Airlines and Korean Air announce codeshare agreement
American Airlines and Korean Air have signed an agreement to begin code-sharing. Pending regulatory approval, Korean Air will place its code on American Airlines flights between Dallas/Fort Worth International Airport, USA and Incheon International Airport in Seoul, South Korea.
Kurt Stache, American's Senior VIce President of Alliances and Partnerships, said: "The new codeshare cooperation with Korean Air is an important milestone in growing our relationships with carriers around the globe to provide customers access to the destinations they value most. This is the next step in strengthening our position in Asia, allowing us to win new customers in the region. We look forward to a strong relationship with Korean Air."
Once approved, the two carriers plan to sell codeshare flights for travel beginning in April 2015. The new agreement will allow Korean Air SKYPASS members to earn miles when traveling on American-operated flights between DFW and ICN.
Yong Soon Park, Korean Air's Senior Vice President of International Affairs and Alliance, said: "We look forward to a successful relationship with American Airlines. We are delighted with this partnership which will provide our customers with better access between Korea and the USA and to destinations throughout North, Central and South America."
American began serving Seoul in May 2013. Through American's extensive network from Dallas/Fort Worth, customers traveling from South Korea have one-stop access to nearly 200 additional destinations throughout North America, the Caribbean and Latin America.
American's route between DFW and Seoul is operated with a Boeing 777-200 aircraft. The airline is retrofitting all 47 of its 777-200s to refresh the cabins and enhance the premium experience on international flights.
The retrofitted 777-200 features a Business Class product designed especially for American's customers, with a fully lie-flat seat, direct aisle access and a private flying experience. The plane has a modern interior; including a walk-up bar with unique lighting, a dramatic archway and a spacious look.
American Airlines Group is the holding company for American Airlines and US Airways. Together with wholly owned and third-party regional carriers operating as American Eagle and US Airways Express, the airlines operate an average of nearly 6,700 flights per day to 339 destinations in 54 countries. American is a founding member of the Oneworld Alliance, whose members and members-elect serve nearly 1,000 destinations with 14,250 daily flights to 150 countries.
Korean Air, established in 1969, is one of the world's top 20 airlines and carried more than 23 million passengers in 2013. Korean Air operates in excess of 430 flights per day to 126 cities in 45 countries on six continents with a fleet of 155 aircrafts including ten A380s.
EU and US agree end to Airbus-Boeing supply chain tariffs
The EU and US have agreed to resolve a 17-year dispute over aircraft subsidies, suspending tariffs on billions of dollars' worth of goods that have plagued procurement leaders on both sides of the Atlantic.
Under an agreement reached by European Commission Executive Vice-President Valdis Dombrovskis and US Trade Representative Katherine Tai on Tuesday, the tariffs will be halted for a period of at least five years.
It will bring an end to punitive and disruptive levies on supply chains that have little to do with the argument, which became embroiled in the trade battle. Businesses on both sides of the dispute have been hit with more than $3.3bn in duties since they were first imposed by the US in October 2019, according the EC.
The US imposed charges on goods upto $7.5bn in response to a World Trade Organisation ruling that judged the EU’s support of Airbus, its biggest aircraft manufacturer, unlawful. A year later in November 2020, the EU hit back. The WTO found the US had violated trade rules in its favourable treatment of Boeing, and was hit with EU duties worth $4bn.
In all the tariffs affected $11.5bn worth of goods, including French cheese, Scotch whisky, aircraft and machinery in Europe, and sugarcane products, handbags and tobacco in America. Procurement leaders on both sides of the fence were forced to wrestle with tariffs of 15% on aircraft and components, and 25% on non-aircraft related products.
Boeing-Airbus dispute by the numbers
- The dispute began in 2004
- Tariffs suspended for 5 years
- $11.5bn worth of goods affected by tariffs
- $3.3bn in duties paid by businesses to date
- 15% levy on aircraft and 25% on non-aircraft goods suspended
Both sides welcome end to tariffs
European Commission President Ursula von der Leyen branded the truce a “major step” in ending what is the longest running dispute in WTO history. It began in 2004.
“I am happy to see that after intensive work between the European Commission and the US administration, our transatlantic partnership is on its way to reaching cruising speed. This shows the new spirit of cooperation between the EU and the US and that we can solve the other issues to our mutual benefit,” she added.
Both aircraft manufacturers have welcomed the news. Airbus said in a statement that it will hopefully bring to an end the “lose-lose tariffs” that are affecting industries already facing “many challenges”. Boeing added that it will “fully support the U.S. Government’s efforts to ensure that the principles in this understanding are respected”.
The US aerospace firm added: "The understanding reached today commits the EU to addressing launch aid, and leaves in place the necessary rules to ensure that the EU and United States live up to that commitment, without requiring further WTO action."
This week’s decision expands upon a short-term tariff truce announced in March this year. The EC says it will work closely with the US to try and further resolve the dispute, establishing a Working Group on Large Civil Aircraft led by each side’s trade minister.
Airbus last month signalled to suppliers that post-pandemic recovery was on the horizon, telling them to scale up to meet a return to pre-COVID manufacturing levels. “The aviation sector is beginning to recover from the COVID-19 crisis,” said Airbus chief executive Guillaume Faury, adding that suppliers should prepare for a period of intensive production “when market conditions call for it.”