Asiana Airlines Considers Self-Support After Employment Subsidy Ends... 'Sharing COVID-19 Burden'

No Submission of Unpaid Leave Application in October
Temporary Support Possible for One Month

[Asia Economy Reporter Dongwoo Lee] As the government is discussing the extension of the paid employment retention support fund for the aviation industry, which is set to end at the end of this month, Asiana Airlines is considering a plan to pay its own allowances for the month of October even if the support fund is not extended. The company explained that it could temporarily maintain the existing paid leave conditions as a measure to share the burden with its employees.

According to the aviation industry on the 15th, Asiana Airlines did not submit a leave or furlough plan to the Ministry of Employment and Labor to receive unpaid leave support next month. To receive unpaid leave support funds, an application must be submitted to the government one month prior to the leave.

Earlier, major domestic low-cost carriers (LCCs) such as Jeju Air, Jin Air, and T'way Air all submitted applications for unpaid leave to the Ministry of Employment and Labor earlier this month in preparation for the end of the paid employment retention support fund, and Korean Air decided to pay its own support funds.

Instead of submitting an unpaid leave application, Asiana Airlines is discussing a plan to first pay its own support funds for the month of October if the paid employment retention support fund ends at the end of this month.

However, unlike Korean Air, which decided to provide its own allowances until the end of this year, Asiana Airlines is reportedly likely to support the reduced amount until next month and then submit an unpaid leave application starting in November.

Asiana Airlines believes that it is possible to temporarily provide support funds based on the black-ink trend in the air logistics sector this year despite the prolonged impact of COVID-19. The company recorded an operating loss of 31.4 billion KRW based on consolidated financial statements in the first half of this year, but turned to an operating profit of 55.9 billion KRW in the second quarter due to increased cargo costs from rising oil prices, an increase of 108.5% compared to the same period last year (26.8 billion KRW).

Meanwhile, the government is keeping open the possibility of extending the employment retention support fund period for special employment support industries such as the aviation industry, considering the resurgence of COVID-19, and is consulting with related ministries.

An Asiana Airlines official said, "The extension of the government's paid employment retention support fund is urgently needed, and we are reviewing various plans in case it is not extended," adding, "We will do our best to minimize the damage to employees caused by COVID-19."

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