Civil Aviation Pilots Urge Extension of Employment Retention Subsidy Deadline for Aviation Industry

"Support Funds Cut Off After August... Unpaid Leave, Voluntary Retirement, and Restructuring If This Continues"

The departure hall at Terminal 1 of Incheon International Airport is quiet on the 29th, ahead of the golden holiday weekend. Photo by Moon Honam munonam@

[Asia Economy Reporter Yoo Je-hoon] As the aviation industry faces a crisis due to the novel coronavirus infection (COVID-19) outbreak, private airline pilots on the 23rd urged the extension of the employment retention subsidy payment deadline for all aviation industry workers.

The Korea Private Airline Pilots Association and the Korea Pilots Labor Union Federation issued a joint statement on the day, stating, "We ask for the extension of the special employment retention subsidy payment deadline for the entire aviation industry until the global COVID-19 situation calms down and international travel becomes possible."

They said, "The global aviation industry is in a panic due to worsening management conditions, and now even the expectation that the situation will improve in the short term has vanished," adding, "Domestically, all airlines are struggling with financial difficulties and are relying on government employment retention subsidies to get through each day."

They continued, "The aviation industry has higher fixed costs compared to other industries, and there is a heavy burden of labor costs for idle personnel in a situation where operations are impossible," adding, "Most airlines have been furloughing about 70% of their employees since March using employment retention subsidies, but since the subsidy payment period is 180 days, most airlines will no longer be able to receive subsidies after August."

They also expressed concern, saying, "Afterwards, airlines without financial capacity will have no choice but to proceed with unpaid leave, voluntary retirement, and even restructuring."

In response, the two organizations emphasized, "Airline restructuring is a serious matter that will have a chain reaction throughout the aviation industry, which directly and indirectly employs 250,000 people," and stressed, "The government must no longer stand by and watch the collapse of airlines and the entire industry."

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