Aviation Association Appeals to Government for Bold Financial Support in Establishing Aviation Union

"Urgent Need to Establish Financial Safety Nets for Crisis Overcoming"

Kim I-bae of Jeju Air, Han Tae-geun of Air Busan, Jo Gyu-young of Air Seoul, Choi Jong-gu of Eastar Jet, Choi Jeong-ho of Jin Air, and Jung Hong-geun of T'way Air, presidents of low-cost carriers (LCCs), are waiting on the 22nd to meet with Song Ok-ju, Chairperson of the National Assembly Environment and Labor Committee. The LCC presidents requested an extension regarding the employment retention subsidy. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Yu Je-hoon] The aviation industry has appealed to the government for active financial support related to the establishment of the 'Aviation Development Association.' They argue that a financial safety net is necessary to overcome the overall crisis in the industry caused by the novel coronavirus disease (COVID-19), and that the government must take proactive measures.

According to the Korea Aviation Association (Chairman Son Chang-wan, President of Korea Airports Corporation) on the 9th, domestic airlines such as Korean Air, Asiana Airlines, and Jeju Air delivered an 'Appeal for Government Support for the Establishment of the Aviation Development Association' to the Ministry of Strategy and Finance and the Ministry of Land, Infrastructure and Transport on the 7th. Earlier, at a meeting between the Ministry of Land, Infrastructure and Transport and airline CEOs held in June, the establishment of the Aviation Development Association to strengthen the industry's crisis response capabilities and secure competitiveness was discussed in earnest.

In their appeal, they stated, "With international flights suspended and almost no revenue, 65% of all airline employees are surviving on government employment retention subsidies through leave of absence, but this is only a temporary survival measure," adding, "The government is providing temporary cash flow support through the Industrial Stabilization Fund, but mid- to long-term government support such as the establishment of a financial safety net is absolutely necessary to overcome the crisis."

They further emphasized, "We repeatedly request the government's active financial support for the establishment of a safety net in the form of an association capable of comprehensive financial functions such as guarantees and investments to strengthen and foster industrial competitiveness, and loans to overcome temporary management crises."

The aviation industry is paying attention to other industries that have received government support multiple times as models. In fact, the shipping industry has established and operated a shipping association since 1962, shortly after liberation, and received full government financial support during this process. Additionally, in cases where the importance of a business is recognized, such as patent mutual aid, content mutual aid associations, scientific and technological personnel mutual aid associations, and software mutual aid associations, the government has provided financial support to establish a stable foundation for the associations.

They appealed, "The aviation industry is a key sector encompassing national security and the economy, responsible for 97% of international passengers and 30% of import-export volume," and added, "Please help the aviation industry take off again to contribute to the national economy and public welfare."

An association official emphasized, "Even after overcoming COVID-19, second and third infectious diseases may continue to emerge," and said, "For post-COVID preparedness, the establishment of an association necessary for creating an aviation financial ecosystem and bold and swift government financial support to serve as a catalyst are essential."

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