'Emergency Measures + α' Asiana Airlines, Early Implementation of Unpaid Leave and 33% Salary Reduction

Additional Strengthening Measures Announced Just Two Weeks After Proposal Release
CEO Returns 100%, Executives 50%, Team Leaders 30% of Salaries

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Je-hoon] Asiana Airlines has decided to implement unpaid leave early for all employees this month and uniformly cut wages by 33%. This is due to the rapidly worsening business environment as countries around the world are restricting entry of travelers from Korea amid the novel coronavirus disease (COVID-19) outbreak.

Asiana Airlines announced on the 2nd that it will enforce this strengthened self-help measure starting this month. This means that less than two weeks after announcing a self-help plan on the 18th of last month, which included unpaid leave and partial salary returns by executives, the airline has introduced additional reinforcement measures.

First, Asiana Airlines has advanced the implementation of more than 10 days of unpaid leave for all employees to this month. Accordingly, all employees’ wages for this month will be uniformly cut by about 33%. Executives will also increase the amount of salary they return. President Han Chang-soo will return his entire salary (previously 40%), and executives will voluntarily return 50% (previously 30%). Heads of each department will also return 30% of their salary (previously 20%).

This strengthened self-help measure is a response to the rapid spread of COVID-19 centered in Daegu and Gyeongbuk, which has led countries worldwide to successively restrict entry of travelers from Korea. According to diplomatic authorities, as of this morning, 80 countries have either banned entry of passengers from Korea or strengthened entry procedures such as self-quarantine.

Asiana Airlines also suspended or reduced flights last week on routes from Europe including Lisbon, Venice, Rome, Barcelona, and Istanbul. An Asiana Airlines official explained, "Since countries are blocking entry of travelers from Korea, there are currently few destinations to operate flights to," adding, "We adjusted the timing to implement the unpaid leave originally planned for March to May to this month."