[Exclusive] Eastar Jet Management to Return 30% of Salaries... Working Hours Also Reduced

On the 10th, amid ongoing concerns about the spread of the novel coronavirus infection, the domestic check-in counters at Gimpo Airport in Seoul showed a quiet scene. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Yoo Je-hoon] Eastar Jet has decided to implement austerity measures starting from March for four months, including voluntarily returning 30% of executive salaries and accepting applications for three- or four-day workweeks from all employees except for certain job categories. This move reflects a trend of 'downsizing' triggered by the COVID-19 pandemic spreading throughout the low-cost carrier (LCC) industry.

According to the aviation industry on the 19th, Eastar Jet announced this management plan internally the day before. First, Eastar Jet executives at the level of deputy general manager and above will voluntarily return 30% of their salaries. Department heads, excluding executives, will also voluntarily return their position allowances.

For all employees except flight and cabin crew, a reduction in working days and hours will be implemented. During the system implementation period (March to June), employees can choose one of the following options each month: ▲ three days a week (24 hours per week) ▲ four days a week (32 hours per week) ▲ four hours per day.

Additionally, Eastar Jet will not allow overtime work except in emergency situations, and the existing unpaid leave policy (minimum 15 days) will be maintained.

Eastar Jet’s decision to reduce working hours is interpreted as an effort to cut costs such as labor expenses while minimizing workforce reductions and restructuring. Recently, LCCs have been suffering from double hardships due to the suspension of flights and cancellations on China and major Southeast Asian routes caused by COVID-19.

An Eastar Jet official explained, "As external business conditions worsen due to COVID-19 and other factors, this is a measure to respond accordingly," adding, "It is a temporary measure until June and will be implemented only for those who apply."

This content was produced with the assistance of AI translation services.