COVID-19 Shock in the Aviation Industry... Air Seoul Considers Suspending All Routes in March

Due to the Impact of COVID-19 Demand Decline... Worsened by Strengthened Entry Restrictions for Koreans in Hong Kong, Taiwan, and Others 'Adding Insult to Injury'

[Asia Economy Reporter Yu Je-hoon] Air Seoul, a low-cost carrier (LCC), is reportedly considering suspending operations on all routes for about two weeks in March. This reflects the growing concerns within the aviation industry, which is facing an unprecedented crisis due to the novel coronavirus disease (COVID-19).

According to the aviation industry on the 25th, Air Seoul is reviewing a plan to suspend operations on all routes, including domestic and international flights, for about two weeks around March. Currently, Air Seoul operates one domestic route and 11 international routes.

In fact, the Air Seoul application briefly posted and then removed notices about suspending flights on international routes departing from Incheon to Tokyo, Osaka, Takamatsu, Guam, Hong Kong, Da Nang, Hanoi, Nha Trang, Boracay, Kota Kinabalu, and Siem Reap.

An Air Seoul official stated, "The suspension plan has not yet been finalized, and there was a miscommunication during the process," adding, "We are in the final review stage to decide whether to suspend only Southeast Asian routes for about two weeks starting in March, suspend all international routes, or halt operations on all routes including domestic flights. We expect to finalize the related plan as early as today."

The reason for Air Seoul's deepening concerns is that outbound demand from domestic travelers is decreasing due to the spread of COVID-19, while some foreign countries are showing signs of expanding entry restrictions. Considering that March is typically the start of the low season, the aviation industry is facing a potential 'shutdown' crisis.

In fact, Hong Kong issued a 'red travel alert' for Korea starting at 6 a.m. on the same day, banning entry of foreigners (non-Hong Kong residents) who have visited Korea within the last 14 days, and advising its citizens to refrain from traveling to Korea. Taiwan also implemented mandatory 14-day quarantine measures for all travelers arriving from Korea starting that day.

Vietnam, a popular travel destination in Southeast Asia, also quarantined passengers who boarded VietJet's Daegu-Da Nang route the previous day. Vietnamese authorities are reportedly considering a 14-day quarantine for foreign passengers arriving from Korea.

An industry insider said, "With both outbound and inbound demand declining simultaneously, operating flights only increases losses," adding, "It seems they have judged that it is better to suspend operations altogether at the start of the low season."