Ministry of Land, Infrastructure and Transport Extends Air Premia and Aero K Licenses Until Year-End

[Image source=Yonhap News]

[Asia Economy Reporter Jo Gang-wook] The aviation transport business licenses of the newly established low-cost carriers (LCCs) Air Premia and Aero K have been extended until the end of this year.

The Ministry of Land, Infrastructure and Transport announced on the 17th that it will change the license conditions imposed on Air Premia and Aero K when issuing their international air transport business licenses in March 2019.

At the time of acquiring their new licenses on March 6, 2019, Air Premia and Aero K were required to apply for an Air Operator Certificate (AOC) within one year and commence operations within two years. However, Air Premia has not been able to complete the AOC process due to delays in aircraft delivery from July last year to the end of this month, caused by Boeing’s factory shutdown and aircraft defect repairs amid the COVID-19 pandemic.

Additionally, Aero K received its AOC on December 28 last year under the Aviation Safety Act and obtained route approval for Cheongju-Jeju, but is facing difficulties in launching new services due to decreased air travel demand and financial conditions caused by COVID-19.

Accordingly, the Ministry of Land, Infrastructure and Transport has changed the condition requiring the two airlines to commence operations by next month 5th to a new deadline of December 31. The ministry explained that this decision was made after a license advisory meeting attended by civilian experts in law, accounting, aviation, and safety, considering the unforeseen variable of COVID-19 which disrupted the new airlines’ preparations and the current difficulty of normal operations.

With this condition change, Air Premia and Aero K can choose their new launch timing within this year, taking into account the recovery of air travel demand.

A ministry official said, "Since the airlines will have sufficient time before launching new services, it is expected to help them secure the necessary capital for stable operations," adding, "If the relaxed license conditions are not met or financial soundness is insufficient, strict management will be enforced according to relevant laws."