Fly Gangwon to Cut 22 Flights on Yangyang-Jeju Route Next Month

[Asia Economy Reporter Dongwoo Lee] Fly Gangwon will reduce the number of round-trip flights on the domestic passenger route 'Yangyang~Jeju' next month.

According to the aviation industry on the 20th, Fly Gangwon has decided not to operate 22 round-trip flights on the Yangyang~Jeju route in March. The Yangyang~Jeju flights will be reduced by up to 13 days, and Jeju~Yangyang by up to 15 days. Along with this, the total number of flights next month will decrease to 40 round trips, about one-third of the same month last year (132 flights).

Fly Gangwon announced that it will adjust the flight schedule next month following last month to prevent the spread of COVID-19, and is individually notifying customers who planned to use the affected flights during this period about itinerary changes and refunds.

The company had previously reduced the Yangyang~Jeju route in January (40 round trips) and February (33 round trips) and is currently operating once on weekdays and twice on weekends. In the first half of last year, it operated domestic routes such as Yangyang~Daegu and Yangyang~Gimpo, as well as international routes like Yangyang~Taipei and Yangyang~Clark, but due to the spread of COVID-19 and a decrease in passengers, these are currently temporarily suspended. Two out of three aircraft were returned early, and two-thirds of all employees (212 people) have been on unpaid leave since October last year.

The industry analyzed that Fly Gangwon’s operating losses are increasing as it continues to operate only the Yangyang~Jeju single route after international flights were suspended. It is known that more than half of the initial capital of 46 billion KRW invested at the time of establishment was used as operating funds last year.

Fly Gangwon plans to raise 25 billion KRW through a paid-in capital increase at the board meeting postponed to next month to secure business funds. Through this, it aims to strengthen financial soundness and introduce medium-sized aircraft in line with the easing of COVID-19 in the future.

A Fly Gangwon official said, "Due to the prolonged COVID-19 situation, we are reducing flight operations while securing funds through a paid-in capital increase," adding, "Support such as government expansion of some routes is urgently needed."