KAL, Asiana to set up joint online travel agency

Industry rivals Korean Air Lines (KAL) and Asiana Airlines have announced plans to establish a joint online travel agency.

Shim Yi-Taek, president of KAL, and Park Chan-Bub, president of Asiana Airlines, signed a letter of intent (LOI) Wednesday to jointly establish an Internet-based travel agency, tentatively named the Airline Portal.

The companies plan to sign a final contract next month and open the site in the latter half of this year. Customers would be able to use the site to make hotel reservations, rent cars, and book tours, as well as arrange flights on most of the world's major airlines.

It is the first time the two airline companies formed a business alliance. Noting that the two airlines joined hands in a bid to keep foreign companies out of the growing online travel market here, President Shim said that KAL would actively seek other tie-ups in the future.