Airlines vying to offer presidential jet
The Korean presidential jet / Korea Times file
By Kang Seung-woo
Competition is set to heat up in the aviation industry as the government is preparing a tender for a presidential jet.
Along with traditional contenders and flagship carriers Korean Air and Asiana Airlines, up-and-coming low-cost airlines will also be allowed to participate in the bidding for the first time.
In 2010, the Lee Myung-bak administration signed a five-year lease for a Boeing 747-400 jet with Korean Air and the contract was renewed for another five years in 2014 for then-President Park Geun-hye. Before that, Cheong Wa Dae had alternated between chartered planes from Korean Air and Asiana Airlines
The current contract for the chartered plane expires in March 2020 and bidding is anticipated to begin early next year.
The latest five-year deal between the government and Korean Air was worth 142.1 billion won ($127 million).
However, providing a charted aircraft for the head of state is more than just securing a lucrative lease contract.
"The deal can be seen as kind of a government guarantee of a safety-qualified airline," said an official in the aviation sector.
"Because of such a symbolic meaning, airlines want to bid for the tender and clinch it."
If selected, an airline has to modify its jet to provide a presidential office and other facilities. In addition, the company, teaming up with the Air Force, will equip the aircraft with advanced communication and defense systems, including radar-signal jammers and flares to deflect heat-seeking missiles.
The upcoming tender is most likely an opportunity not lost on both domestic full-service carriers.
For Korean Air, another extension would likely serve as momentum to overcome the "endless" power abuse scandals and alleged wrongdoings by its Chairman Cho Yang-ho and members of his family that are not good, to say the least, for the nation's largest carrier.
Due to the scandals sorrounding the owner family, there is sour public sentiment that it would not be good for the grassroots-centered Moon government to pick such a trouble-making company as the provider of the presidential jet.
However, Asiana Airlines may not be a perfect substitute due to sexual harassment accusations linked to its Chairman Park Sam-koo made earlier this year.
In February, Park was accused of forcing some flight attendants to hug him or hold his hand when he visited Asiana's headquarters, and that may be a bitter pill to swallow for Moon, who pledged to become a "feminist president."
Worse, its financial difficulty is raising questions about whether the airline can effectively operate the presidential jet.
For the first time, Cheong Wa Dae is considering allowing budget airlines to join the bidding -- a move seen as the government's decision to replace Korean Air with another airline amid escalating anger over the Korean Air scandals.
Out of six LCCs, Jeju Air, Eastar Jet and T'way Air are not affiliated with Korean Air nor Asiana Airlines.
Despite their maiden participation, it would be a tall order for the low-cost airlines because their business is heavily focused on servicing short-haul routes.
Some are emphasizing the necessity of purchasing an aircraft rather than leasing a commercial airplane, but President Moon is said to have instructed the presidential office to continue leasing the aircraft.
Buying a presidential aircraft has been a politically thorny issue as every opposition bloc disapproved of a budget for the purchase on all such occasions.
ksw@ktimes.com More articles by this reporter