Domino Effect of COVID-19 Self-Help Measures... Air Busan Executives Submit Collective Resignation Letters

Among 32 International Routes, 25 Unprofitable China and Southeast Asia Routes to Suspend Operations in March
Airline Industry Domino Effect in Preparing Self-Help Measures

[Asia Economy Reporter Yu Je-hoon] Amid the crisis threatening the survival of the aviation industry due to the impact of the novel coronavirus infection (COVID-19), Air Busan has taken high-intensity self-help measures, including receiving collective resignation letters from all executives.

Air Busan announced on the 24th that all executives submitted collective resignation letters to overcome the management crisis. Previously, Air Busan executives had agreed last week to return 20-30% of their salaries.

In addition to executives, department heads at Air Busan voluntarily agreed to return 10% of their wages, and all employees were allowed to choose one of the following options starting in March: ▲ four-day workweek ▲ 15 days of unpaid leave ▲ 30 days of unpaid leave.

Air Busan also decided to suspend operations for one month in March on 25 of its 32 international routes, mainly those to China and Southeast Asia, where passenger numbers have sharply declined. Furthermore, the company is negotiating with aircraft leasing companies and domestic ground handling firms to defer or reduce payments, implementing comprehensive countermeasures.

An Air Busan official stated, "Since last year, we have been in a severe situation due to unforeseen adverse factors," adding, "We plan to make every effort to normalize management by reducing costs and improving profitability until the situation improves."

Meanwhile, Asiana Airlines, the parent company of Air Busan, also took self-help measures by having all executives submit collective resignation letters and voluntarily return 30% of their salaries on the 18th.