• Journal of the Korean Society for Aviation and Aeronautics
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• v.31 no.4
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• pp.28-44
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• 2023

This study investigates aircraft lessor business models by studying cases and interviewing experts to analyze investors and business strategies of aircraft lessor. The results confirm that there is a wide range of investors including institutional investors, financial institutions, insurance companies, corporations, and wealthy individuals for aircraft lessor. Aircraft lessors can be categorized based on its required rate of return (cost of capital) into bank-investing core, institutional investor-investing value-added, and hedge fund-investing opportunistic. Aircraft lessor decides leasing rate by aircraft purchasing price and lessee's credit rating. Core aircraft lessors invest in new aircrafts for new placement or sale-and-leaseback strategy requiring little technical risk in aircraft, value-added lessors invest in middle-aged aircrafts for re-leasing, opportunistic lessors invest in old aircrafts for freighter conversion or part-out strategy requiring high level of expertise. This study provides insights for future Korean aircraft lessor establishment and investment.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.46 no.3
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• pp.148-160
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• 2023

The air transport industry is experiencing unprecedented fluctuations in aviation demand through the Covid-19 pandemic, and is more focused than ever on maintaining and generating business profitability. During the pandemic, demand for air cargo has soared, and the conversion business from passenger aircrafts to freighters(P2F) is drawing attention as a new business in the aviation maintenance industry. This study derives important factors to be considered in order to successfully carry out the P2F project through a wide range of cases and related literature, and analyzes the relative importance of each factor using the analytic hierarchy process. Through a survey of 33 aviation maintenance experts with more than 20 years of field experience, the importance of main factors and their sub factors was determined and implications were drawn. As a primary result, in order to succeed in the P2F project, the main factors were identified in the order of skill, finance, and location. The most important sub factors for each main factors were identified in order of securing airframe modification skill, securing infrastructure construction cost, and creating P2F business complex and district. The quantified success factors suggested the critical direction for the successful development of Korea's P2F business, and presented viable and specific business strategies and implementation plans for each factors.

• The Korean Journal of Air & Space Law and Policy
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• v.21 no.2
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• pp.71-96
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• 2006

This paper intends to describe the carrier's duty for the delivery of international air cargo and the carrier's liability for the illegal delivery of cargo under the Montreal Convention, lATA Conditions of Carriage for Cargo and judicial precedents. Under the Article 13 of Montreal Convention, the consignee is entitled, on arrival of the cargo at the place of destination, to require the carrier to deliver the cargo to it, on payment of the charge due and on complying with the conditions of carriage. And unless it is otherwise agreed, it is the duty of the carrier to give notice to the consignee as soon as the cargo arrives. Under the Article 18 of Montreal Convention, the carrier is liable for damage sustained in the event of the destruction or less of or damage to, cargo upon condition only that the event which caused the damage so sustained took place during the carriage by air. And the carriage by air comprises by the period during which the cargo is in the carriage of the carrier. Under the Article 11 of lATA Conditions of Carriage for Cargo, carrier is liable to shipper, consignee of any other person for damage sustained in the event of destruction of loss of, or damage to, or delay in the carriage of cargo only if the occurrence which caused to the damage so sustained took place during the carriage as defined under Article 1. According to the precedent of Korean Supreme Court sentenced on 22 July 2004, the freight forwarder as carrier was not liable for the illegal delivery of cargo to the notify party (actual importer) on the airway bill by the bonded warehouse operator because the freight forwarder did not designate the bonded warehouse and did not hold the position of employer to the bonded warehouse operator. In conclusion, the carrier or freight forwarder should pay always attention the movement and condition of the cargo not to be liable for the illegal delivery of cargo.

• The Korean Journal of Air & Space Law and Policy
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• v.23 no.2
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• pp.67-92
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• 2008

The purpose of this paper is to research the requirements and effect of the document of carriage in respect of the carriage of cargo by air under the Montreal Convention of 1999, IATA Conditions of Carriage for Cargo, and the judicial precedents of Korea and foreign countries. Under the Article 4 of Montreal Convention, in respect of the carriage of cargo, an air waybill shall be delivered. If any other means which preserves a record of the carriage are used, the carrier shall, if so requested by the consignor, deliver to the consignor a cargo receipt. Under the Article 7 of Montreal convention, the air waybill shall be made out by the consignor. If, at the request of the consignor, the carrier makes it out, the carrier shall be deemed to have done so on behalf of the consignor. The air waybill shall be made out in three original parts. The first part shall be marked "for the carrier", and shall be signed by the consignor. The second part shall be marked "for the consignee", and shall be signed by the consignor and by the carrier. The third part shall be signed by the carrier who shall hand it to the consignor after the goods have been accepted. Under the Article 5 of Montreal Convention, the air waybill or the cargo receipt shall include (a) an indication of the places of departure and destination, (b) an indication of at least one agreed stopping place, (c) an indication of the weight of the consignment. Under the Article 10 of Montreal Convention, the consignor shall indemnify the carrier against all damages suffered by the carrier or any other person to whom the carrier is liable, by reason of the irregularity, incorrectness or incompleteness of the particulars and statement furnished by the consignor or on its behalf. Under the Article 9 of Montreal Convention, non-compliance with the Article 4 to 8 of Montreal Convention shall not affect the existence of the validity of the contract, which shall be subject to the rules of Montreal Convention including those relating to limitation of liability. The air waybill is not a document of title or negotiable instrument. Under the Article 11 of Montreal Convention, the air waybill or cargo receipt is prima facie evidence of the conclusion of the contract, of the acceptance of the cargo and of the conditions of carriage. Under the Article 12 of Montreal Convention, if the carrier carries out the instructions of the consignor for the disposition of the cargo without requiring the production of the part of the air waybill or the cargo receipt, the carrier will be liable, for any damage which may be accused thereby to any person who is lawfully in possession of that part of the air waybill or the cargo receipt. According to the precedent of Korea Supreme Court sentenced on 22 July 2004, the freight forwarder as carrier was not liable for the illegal delivery of cargo to the notify party (actual importer) on the air waybill by the operator of the bonded warehouse because the freighter did not designate the boned warehouse and did not hold the position of employer to the operator of the bonded warehouse. In conclusion, as the Korea Customs Authorities will drive the e-Freight project for the carriage of cargo by air, the carrier and freight forwarder should pay attention to the requirements and legal effect of the electronic documentation of the carriage of cargo by air.