Busan Chamber of Commerce Urges Government to Overcome Air Busan's Worst Crisis and Management Difficulties

Busan Chamber of Commerce and Industry

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Jong-hyo] The Busan Chamber of Commerce and Industry has taken steps to support companies by sending an urgent government proposal to overcome the management difficulties of Air Busan, which is struggling with business activities due to the novel coronavirus disease (COVID-19) crisis.

On the 11th, Busan Chamber of Commerce announced that it delivered a total of three proposals to six related ministries and agencies, including the Ministry of Economy and Finance, Ministry of the Interior and Safety, Ministry of Trade, Industry and Energy, Ministry of Land, Infrastructure and Transport, Korea Airports Corporation, and Korea Export-Import Bank. The proposals include reducing airport usage fees for low-cost carriers, temporarily exempting all taxes related to aircraft, and expanding the L/C limit for additional aircraft acquisition.

After an urgent on-site meeting with Air Busan on the 5th, which is facing management issues due to the COVID-19 crisis, the Busan Chamber of Commerce recognized the seriousness of the situation and took follow-up measures such as government proposals.

Since the COVID-19 crisis, 35 out of 38 Air Busan routes have been suspended. The three operating routes have also reduced flights, raising concerns about a sharp decline in sales and operating losses. In response, Air Busan is making self-help efforts such as salary cuts for executives and department heads.

In the proposal, the Busan Chamber of Commerce emphasized that "special government measures and prompt policy support without missing the right timing are necessary to preserve the aviation ecosystem."

Lee Gap-jun, the full-time vice chairman of the Busan Chamber of Commerce, stated, “Since all domestic low-cost carriers are requesting support from the government, we plan to continuously propose this to the government and related agencies. We also plan to discuss separate financial support with BNK Financial Group for regional companies like Air Busan, which are leading the local aviation industry and struggling due to the COVID-19 crisis.”

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