Considering Complete Suspension of All Routes Due to 'COVID-19' Shock... LCCs Facing Extinction Crisis

Air Seoul Considering Suspension of All Routes... Industry Says "It's Not Someone Else's Problem"

As the number of confirmed cases of the novel coronavirus infection (COVID-19) rapidly increases in South Korea, the counters of Chinese airlines at the departure hall of Terminal 1, Incheon International Airport, appeared quiet on the 24th. / Yeongjongdo - Photo by Kim Hyunmin kimhyun81@

[Asia Economy Reporter Yu Je-hoon] As the skies of various countries have been closed due to the shock of the novel coronavirus infection (COVID-19), Air Seoul is considering suspending operations on all domestic and international routes. This is an extreme measure to minimize losses that occur the more flights operate.

According to the aviation industry on the 25th, Air Seoul is contemplating suspending all routes for about two weeks around March. Air Seoul ranks around 6th among LCCs and currently operates one domestic route and eleven international routes.

In fact, on the morning of the same day, Air Seoul's application briefly posted plans to suspend international routes departing from Incheon to Tokyo, Osaka, Takamatsu, Guam, Hong Kong, Da Nang, Hanoi, Nha Trang, Boracay, Kota Kinabalu, and Siem Reap, but the notice was quickly deleted. An Air Seoul official said, "We are currently in the stage of considering suspending all routes including domestic flights, and a decision may be made as early as today."

The reason Air Seoul has pulled out the extreme measure of suspending operations is due to the deteriorated business environment caused by COVID-19. Since the spread of COVID-19, not only major Southeast Asian routes but also the only profitable domestic route between inland and Jeju has seen a sharp decline in passenger load factors. To make matters worse, as COVID-19 rages mainly in Daegu and Gyeongbuk, some foreign countries are strengthening entry restrictions on Koreans. Both inbound and outbound demand have reached the worst situation.

An industry insider said, "At this point, operating flights only causes losses, so it seems they have judged that it is better to minimize losses by parking the planes and paying parking fees for a certain period."

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