Korean Air to open massive JFK lounge as Asiana merger nears approval

The South Korean airline aims to strengthen U.S. presence with new 16,000-square-foot lounge at JFK Airport

Korean Air plans to open a premium lounge in the new Terminal One at John F. Kennedy International Airport. Industry insiders see this move as Korean Air’s strategic effort ahead of its pending merger with Asiana Airlines, which is still awaiting approval from the U.S. Department of Justice (DOJ).

Korean Air will open a 16,000-square-foot lounge for First and Prestige Class passengers at the new Terminal One at JFK Airport in 2026, according to sources familiar with the matter on August 14. The lounge will be one of the airline’s biggest lounges outside its hub at Incheon International Airport and the largest lounge in JFK’s new terminal.

The KAL Prestige Class Lounge at Incheon International Airport. / Korean Air

Korean Air negotiated the lease of the lounge space with New Terminal One (NTO), the consortium managing JFK’s redevelopment. NTO had previously issued a Request for Proposals (RFP) to find an airline partner to operate two lounges, one measuring 9,100 square feet and another at 4,000 square feet. However, the space Korean Air has leased is nearly twice as big as the larger of the two lounges initially offered. The JFK Airport is undergoing redevelopment to address increased passenger traffic and upgrade outdated facilities.

“The relocation and new construction of the lounge are in line with the construction of the new terminal,” said a Korean Air spokesperson. “This is a separate agreement from the one NTO put out for public bidding.” In a recent press release, NTO stated that the lounge deal would further solidify its relationship with Korean Air.

Hanjin Group Chairman Cho Won-tae and Boeing COO Stephanie Pope at the Farnborough Airshow on July 22, 2024. / Korean Air

Korean Air’s investment in the premium lounge is part of a broader strategy to strengthen its presence in the U.S. Last month, Hanjin Group Chairman Cho Won-tae signed a major deal at the Farnborough Airshow in the UK to purchase 50 Boeing aircraft. The order, including 20 B777-9s and 30 B787-10s, is valued at approximately 30 trillion won ($2.2 billion).

The airline’s expansion in the U.S. is widely viewed as a strategic move related to Korean Air’s ongoing merger with Asiana Airlines. The merger, which has already been cleared by competition authorities in 13 out of 14 countries, is still awaiting approval by the U.S. DOJ. Unlike regulators in other countries, the DOJ typically does not announce its decisions but instead files a lawsuit if it finds issues. If no legal action is taken, the merger is considered approved.

[Yoon Yewon]

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