Research Article
Management Philosophy that Turned Crisis into Opportunity - 『SAFER』 Principles of Korean Air Chairman Yang-ho Cho
1 Seoul School of Integrated Sciences and Technologies, 2 Korean Air
Published: January 2021 · Vol. 25 · pp. 91-116
DOI: https://doi.org/10.17287/kbr.2021.25.0.91
Full Text
Abstract
Currently, Korea is esteemed as a world-class aviation powerhouse. The financial and operational efficiency of airports, including Incheon International Airport and Korean Air, are also among the best in the world. In 2019, the International Air Transport Association Annual General Meeting(IATA-AGM), called the UN Conference of the World Aviation Industry, was held in Seoul, which has had a great influence on the global aviation policies. Such a global status and the competitive environment of the Korean aviation industry are set by the Korean Air’s fierce challenges and innovations such as the pioneering of routes led by the CEO and the sincere efforts of the employees. In particular, Chairman Yang-ho Cho, who unfortunately passed away on the 50th anniversary of the founding of Korean Air, was not only the chief executive who made Korean Air a global airline, but also played a role as a driving force for Korean aviation industry being a world-class level. Chairman Cho joined Korean Air in 1974, and overcame all the serious crises as the first and second oil shocks, IMF economic crisis, 9/11 terrorism, 2008 global financial crisis, etc. with keen insights on customer’s timing, not losing the ‘Customer’s Time’. As of 2020, the pandemic of COVID-19 is facing a severe economic crisis not only in the aviation industry but also in almost all countries around the world. As such, seeing how Chairman Yang-ho Cho analyzed the business environment and how differentiated management strategies have overcome the crises will be of great implication for managers. This study examined the achievements of Chairman Yang-ho Cho, focusing on empirical cases driven and based on his SAFER(System-Angle-Field-Empowerment-Rational management) ideology for sustainable development. As a result of the analysis, Korean Air's global growth mechanism appeared as follows: ① Foresight leadership overcoming the crisis with opportunity, ② Global alliance strategy in response to environmental changes in the aviation industry, ③ Creating shared value for the better customer-service based on ”Excellence in Flight & Excellence in Freight”.
