Transcript: Former CEO Lee Seok-ju "Entering Shutdown and Becoming an Official is Also Right"
[Asia Economy Reporter Yoo Je-hoon] On March 24, the contents of a phone call between the CEOs of Jeju Air and Eastar Jet regarding the shutdown of Eastar Jet's flight routes were revealed. The acquisition and merger (M&A) of Eastar Jet by Jeju Air, which is experiencing turbulence, is turning into a battle over the truth.
According to a 6-minute and 30-second recording released by the Eastar Jet Pilots' Union on the 6th, former Jeju Air CEO Lee Seok-joo (currently CEO of AK Holdings) said in a call with Eastar Jet CEO Choi Jong-goo, "Even if the shutdown leads to government intervention, that is acceptable."
This was in response to CEO Choi's remark that "The shutdown means the disappearance of the airline's unique aspects," and "The related team suggested that we should operate at least domestic flights, but I accepted the shutdown decisively."
Despite CEO Choi's concern that "There are important domestic slots (SLOT: number of takeoffs and landings per hour), and if these disappear, the effectiveness of the M&A might be lost," former CEO Lee replied, "We are prepared for that. We will rush to the Ministry of Land, Infrastructure and Transport to resolve it."
In the call, former CEO Lee also addressed the contentious issues of unpaid wages and various arrears, saying, "If we close the deal quickly, the highest priority among the unpaid amounts is wages," and added, "Since Jeju Air is very likely to become the largest shareholder at a level that does not violate the law, we have sent a letter requesting cooperation."
On the same day, the Eastar Jet Pilots' Union also released photos containing parts of the minutes from meetings between Jeju Air and Eastar Jet management. The minutes detailed plans related to restructuring personnel, scale, and amounts involving 405 employees.
Meanwhile, Jeju Air plans to release its position on these allegations of management intervention as early as tomorrow. A Jeju Air official stated, "As of now, we understand that legal review is underway," and added, "We will respond to one-sided claims related to the acquisition battle."
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