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Reckoning routes.

Reckoning Routes. Korean Air, one of Anchorage International Airport's largest users, has decided to bypass Alaska with all passenger flights between Korea and Europe, flying instead over the Soviet Union. The change means a loss of 72 flights a month to the airport. Korean Air passenger flights between Asia and North America continue to stop in Anchorage, as do its cargo flights to North America and Europe.

The reduction of Korean Air passenger traffic will divert business from the international terminal's duty-free shop. Concession fees paid by the operator, Duty Free Shoppers Ltd., are the largest single source of revenue for the airport system. Other airport revenue will decline as well. Mark Butler, marketing manager of the Alaska International Airport System, says, "Landing fee and fuel surcharge revenues for the airport are expected to drop by approximately $1 million a year as a result of those lost flights."

Although Anchorage was expected to see a decline in passenger f lights over the next couple of years due to the introduction of longer-range aircraft, the warming of international relations with the Soviet Union has hastened the shift. Lufthansa has pulled all passenger flights out of Anchorage and Japan Air Lines expects stopovers to continue to disappear, dropping from the present 17 flights a week to 4 in 1991.

The bright side of glasnost policies for aviation in Alaska is negotiations that have made it a likelihood Anchorage will be a hub for regular flights between the Soviet Union and the United States, starting in April. Charter flights are expected to get the green light sooner. Alaska Airlines, MarkAir and Northern Air Cargo have applied for Soviet routes.
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Title Annotation:Korean Air Lines Co. Ltd. drops Anchorage flights
Publication:Alaska Business Monthly
Date:May 1, 1990
Previous Article:To market.
Next Article:Renovations invigorate Alaska's insurance industry.

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