News / Sirius Air Cargo gets clearance for take-off from Busan’s Gimhae Airport

© Yevhenii Strebkov |

South Korean start-up Sirius Air Cargo yesterday received a licence to operate an air cargo business.

Busan-based Sirius Air was founded in April 2020. Its initial ambition of starting passenger services was shelved because of Covid-19, so it refocused on becoming the first cargo airline in the southern part of the country.

The licence application suggested Sirius Air would lease three A330Fs and one 777F, initially.

The Loadstar contacted Sirius in a bid to establish the identity of its shareholders, but no information was released. The company has a paid-up capital of around $3.77m, and is headed by CEO Kwon Do-gyun.

In June, Sirius Air Cargo will commence operations with routes from Busan’s Gimhae Airport to Frankfurt, Qingdao, Hanoi and Tokyo (Narita). Future routes will be to Los Angeles and Singapore next year, Chicago and New Delhi in 2026 and Atlanta, Mexico City and Vienna in 2027.

Six more 777 freighters will be added over the next few years, with Sirius targeting a fleet of 10 freighters by 2027.

It’s an ambitious plan in a soft market, and Korean Air said today that demand was low for airfreight. Announcing a full-year group operating profit of $1.23bn, on revenues of $11.3bn, Korean admitted “cargo operating profit decreased year on year”.

“In Q1, rebound of air cargo demand for traditional items, such as semiconductors, automobiles and displays, remains uncertain due to the weakened global economy. The airline aims to respond flexibly to the robust demand in e-commerce that has carried over from the end of last year, and will respond to supply chain uncertainties arising from global geopolitical risks.”

Sirius could provide capacity for local markets, however.

Baek Won-kook, second vice-minister for land, infrastructure and transport, said: “Sirius Air plans to focus on Gimhae Airport and, as we hope to launch a new airport on Gadeok Island, we expect it to contribute to reducing logistics costs for local shippers. We expect the emergence of new players on medium- and long-haul freight routes to boost competition and provide a variety of choices for local businesses.”

The new airport, due by the end of 2029, is intended to accommodate large freighters, such as 747-400s, and develop an air logistics hub in connection with Busan’s Gimhae.

Most of South Korea’s air cargo is handled by Incheon International, with Gimhae processing just 40% of the country’s air cargo. This is because Gimhae, being surrounded by mountains, has a short runway.

Meanwhile, embattled Asiana Airlines has to offload its cargo arm to persuade antitrust authorities, particularly in Europe, the US and Japan, to approve its merger with Korean Air Lines. So far, four compatriot airlines, Air Incheon, Air Premia, Eastar Jet and Jeju Air, have submitted letters of intent to purchase Asiana’s freight business.

When asked if Sirius Air could bid for the cargo business, the company said it had yet to commence operations and was still in an early phase of development.