Asiana to reduce aged planes by half by 2023

By Kang Seung-woo

Asiana Airlines will retire its planes that are over 20 years old ― half of its fleet ― within five years due to safety and management issues, the airline said Monday.

According to the Ministry of Land, Infrastructure and Transport, there are 42 planes that are more than 20 years old ― 39 passenger carriers and three cargo planes ― and the nation's second-largest carrier accounts for the industry-high 23 percent with 19, 18 for passengers and one for cargo. Its oldest B767 has operated for 25 years and six months.

Among the 19, Asiana will retire 10 by 2023, which will lower the percentage of its old planes to 13 percent.

Currently, Korean Air has 18 old planes from its fleet of168, while budget airlines Eastar Jet has two and T'Way Air has one. Air Incheon, the nation's first cargo airline, has two planes that are over 20 years old.

“The planned retirement of the aged fleet will ease concerns over breakdown and maintenance and improve its business performance through efficient operation,” an Asiana official said.

The decision comes as Asiana has been under pressure to strengthen its financial health. The carrier owes financial institutions 3.2 trillion won ($2.73 billion) in short-term debt, with 1.2 trillion won of loans maturing this year.

Its President Han Chang-soo unveiled a plan last month to retire decades-old planes gradually to keep the fleet manageable and efficient.

Kumho Asiana Group, Asiana's parent company, has puts its flagship unit up for sale to overcome a liquidity crisis.

According to the transport ministry, planes aged 20 years or older are more likely to break down than newer ones.