Eastar Jet Notifies 605 Employees of Layoffs

From 1,680 People Last March to One-Third Level in 5 Months

Eastar Jet / Photo by Yonhap News

[Asia Economy Reporter Lim Juhyung] Eastar Jet, which has been seeking resale after the collapse of its merger and acquisition (M&A) with Jeju Air, has notified 605 employees of layoffs. This marks the first large-scale restructuring in the aviation industry, which has suffered significant damage due to the COVID-19 pandemic.

According to Yonhap News on the 7th, Eastar Jet individually informed 605 employees, excluding those on leave with tied scores among the layoff candidates, of their layoffs in the afternoon. Earlier, at the end of last month, 98 employees voluntarily retired through a voluntary retirement application.

As a result, the total number of employees remaining at Eastar Jet is 590. This number considers the personnel required to operate six aircraft and the essential staff needed for the issuance of the Air Operator Certificate (AOC).

During the COVID-19 pandemic, when both international and domestic flights were suspended, Eastar Jet had 1,680 employees. This represents a reduction to about one-third in just five months.

According to Yonhap News, Eastar Jet plans to select a preferred negotiating bidder by the end of this month and proceed with the M&A in October. Currently, there are reportedly about ten interested parties, including four companies and private equity funds.

Meanwhile, the Eastar Jet Pilots Union plans to hold a press conference on the morning of the 8th in front of the Blue House Sarangchae, together with the Korean Public Service and Transport Workers' Union of the Korean Confederation of Trade Unions, urging the company to withdraw the mass layoffs and calling for personal financial contributions from the founder and Democratic Party lawmaker Lee Sang-jik.

They also plan to pursue legal actions such as filing for relief from unfair dismissal.