COVID-19 Impact Spreads in Aviation Industry...Tourist Flights Canceled and Passenger Demand Declines

Korean Air Labor and Management Agree on Wage Freeze as Part of 'Pain Sharing' Effort

As Korean Air moves forward with the acquisition of Asiana Airlines, on the 17th, Korean Air and Asiana Airlines passenger planes are parked behind the construction site of the 4th runway at Incheon International Airport. Photo by Moon Honam munonam@

[Asia Economy Reporter Yoo Je-hoon] As the third wave of the novel coronavirus infection (COVID-19) intensifies, the damage to the aviation industry is expanding again. Jeju Special Self-Governing Province, the largest demand market, is pushing for mandatory COVID-19 diagnostic testing, entering a quasi-lockdown phase, and international sightseeing flight products, which were being actively promoted to secure profitability, are being rapidly canceled due to a sharp decline in demand.

According to Jeju Province and related industries on the 16th, Jeju Province plans to announce a measure soon to mandate diagnostic testing and submission of negative test certificates for visitors to the island. This is similar to the quarantine systems of major overseas countries that require submission of a negative certificate based on a PCR test (nasopharyngeal swab gene amplification test) within 72 hours of entry.

A Jeju official explained, "We plan to provide a grace period for a certain time, and the testing method will not be limited to PCR only," adding, "Since the government is expanding free testing, the purpose is to block mutual transmission between Jeju and the mainland."

In the aviation industry, there is a tense atmosphere as social distancing levels have been raised due to the recent spread of COVID-19, shrinking air travel demand, and even the last stronghold, the Jeju route, is likely to be hit. Jeju Province accounts for more than 70% of the domestic aviation market. According to Korea Airports Corporation aviation statistics, among domestic passengers departing from Gimpo Airport last month, 69.9%, or 657,491 people, used the Jeju route. Some airports with few or no inland routes, such as Daegu, Cheongju, and Gunsan, have Jeju route shares reaching 96-100%.

A representative of a domestic low-cost carrier (LCC) said, "We have not yet been officially notified of related matters," adding, "If mandatory diagnostic testing becomes a reality, it is inevitable that tourism demand to Jeju will be affected. It is a situation where one problem follows another."

Meanwhile, Asiana Airlines has decided to cancel all international sightseeing flight products scheduled for the 20th, 24th, and 31st. Asiana Airlines is the second airline to cancel international sightseeing flight products after Air Seoul.

Initially, the aviation industry had been actively preparing international sightseeing flights that allow duty-free purchases (up to $600), but coincidentally, with the implementation of social distancing level 2.5 in the metropolitan area due to the spread of COVID-19, they have faced difficulties in attracting customers.

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