The Business

The new joint venture airline is “Ra-Son Air (RSA)”. It is an air service Joint Venture established by KCR-J Aviation and Air Koryo.

It is a legal entity headquartered in Rajin, located in the Democratic People's Republic of Korea (DPRK) approved Rajin-Sonbong Economic and Trade Zone (RS-ETZ).

Ra-Son Air holds a 25-year franchise to establish the first Public Transport air services for passengers and cargo in DPRK. The operations will be based at Rajin Heliport, utilizing large capacity leased helicopters during the first stage of its operations to fly to 2 other cities in its neighboring countries – Yanji, China, and Vladivostok, Russia.

JV Partners

Air Koryo is the national airline of DPRK, reporting to DPRK's General Administration of Civil Aviation (GACA), which was formerly called the Civil Aviation Administration of Korea (CAAK).

KCR-J Aviation is a company specifically set up to develop aviation projects in N.E. Asia (see profile at Appendix 1). The KCR-J team has extensive experience in establishing aviation operations and working in complex regulatory environments. To provide links between Korea, China and Russia ("KCR”), in this "Tri-border Area”, with nearby Japan as a key part of the market, is a unique opportunity. Therein lies the basis for the acronym company name “KCR-J”. Investors, be they individuals or groups, have a unique opportunity to achieve a good rate of return on their investment and be further exposed to a wide range of business opportunities in this unique 'Tri-border area'.

Air Koryo and KCR-J Aviation signed a 'Contract' on 10 August 2000 to establish and operate “Ra-Son Air”, with certain conditions precedent to the formal operating JV contract, to be based in Rajin. The DPRK Government Department responsible for the development of the Trade Zone, the CPEEC (the Korea Committee for the Promotion of External Economic Co-operation) co-signed the Agreement. In exchange for DPRK participation in the Air Services JV's capital through Air Koryo, the airline JV has been granted a 25-year operating license by GACA of the DPRK.

Air Koryo will take 30% of the management of the JV. It will supply land and building facilities and some air crew, ground staff and air traffic control.

KCR-J will take 70% of the management of the JV (see Appendix 2 for the structure of the Airline JV). It will be responsible for executive control and management of the JV and for providing initial capital for commencing operations.

Ra-Son Air will be the holder of the Air Operators Certificate (AOC), and will be the sole licence holder for air operations to and from Rajin.

Air Koryo is a perfect JV partner with whom to operate the service.

Enquiries
For further information, please contact Roger Barrett using the contact details at the top of the page.

Back to main page