LCC Union "Employment Retention Subsidy Must Be Extended Until Year-End"

The pledge to relocate Gimpo Airport, proposed by Lee Jae-myung, the Democratic Party candidate running in the Incheon Gyeyang by-election, has emerged as a late factor in the local elections. On the 31st, the appearance of the Gimpo Airport domestic terminal. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Yoo Hyun-seok] Labor unions of domestic low-cost carriers (LCCs) have urged the government to extend the employment retention subsidy, which is set to expire at the end of this month.

On the 13th, the Federation of Pilots' Unions, Jin Air Labor Union, Jeju Air Pilots' Union, Air Busan Pilots' Union, and T'way Air Pilots' Union jointly stated, "Domestic LCCs are still struggling with deficits, and about 40% of the total employees are continuing with rotational paid leave."

The unions expressed concern that if government support ends in July while each airline is barely holding on through repeated paid-in capital increases and borrowings, there will be insufficient funds to support paid leave, forcing 40% of employees to take unpaid leave.

They explained that unlike major airlines, LCCs have yet to feel the effects of the easing of COVID-19 restrictions. They claimed, "In the case of Japan, a key destination for LCCs, visa-free entry is still not allowed due to strained Korea-Japan relations, and recently, travel routes to China and Taiwan have been blocked due to a surge in COVID-19 cases. In Southeast Asia, where travel demand is high, overseas arrivals are still required to undergo PCR or rapid antigen tests, hindering the increase in travel demand."

They added, "These restrictions are neither caused by our LCCs nor can we resolve them, which is why minimal government support is urgently needed."

Finally, the unions emphasized, "We strongly request the Ministry of Employment and Labor and the Ministry of Land, Infrastructure and Transport to extend the employment retention subsidy for low-cost carriers until the end of the year so that about 10,000 LCC employees can maintain a minimum livelihood and each airline can overcome external challenges to achieve business normalization. We will mobilize all our capabilities to ensure this is realized at the Employment Policy Deliberation Committee scheduled for the 22nd."

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