Last Month's Application Submission Plan Changed
Over 2,700 Items Require Reinspection
AOC Approval Takes an Average of 5 Months
Normal Operations Expected in Q2 Next Year
The resumption of normal flight operations for Eastar Jet, which is undergoing rehabilitation procedures, is expected to be possible only in the second quarter of next year, later than originally planned.
According to the aviation industry on the 15th, Eastar Jet has decided to postpone its application for the Air Operator Certificate (AOC) issuance from the Ministry of Land, Infrastructure and Transport, a mandatory condition for commercial flights, until after the creditors' meeting scheduled for the 12th of next month.
Previously, Eastar Jet had set a two-track strategy to proceed with both the rehabilitation process and AOC re-approval simultaneously for a swift business normalization, planning to complete the AOC application to the Ministry by the end of last month.
The reason for Eastar Jet's postponement of the AOC application is its policy to focus on finalizing the repayment amount adjustment with the creditors' group to obtain approval at the creditors' meeting, the final hurdle in the rehabilitation process. If approval from at least two-thirds of all creditors is not obtained at the creditors' meeting, the AOC re-approval itself becomes meaningless.
It is also necessary to change the name on Eastar Jet's international air transport business license. The company is currently known to maintain the license under the name of former CEO Choi Jong-gu. For the AOC application, it is explained that the name must be changed to new personnel such as CEO Kim Yu-sang, who is currently serving as the joint administrator.
A Ministry of Land, Infrastructure and Transport official said, "According to the Aviation Safety Act Enforcement Rules (Appendix 32), after rehabilitation approval, the international air transport business license is issued based on that, and this license is the first document required for the AOC application."
Even if Eastar Jet applies for AOC reissuance, the inspection period is expected to take about five months, similar to that of a new airline. Although the company initially expected a simplified procedure since it was applying for reissuance, the Ministry anticipates inspections of approximately 2,700 items due to Eastar Jet's flight operations being suspended for over a year. The AOC process typically requires an average of three months for document review and more than one month for safety inspections.
In summary, even if Eastar Jet obtains creditors' approval at next month's meeting and proceeds with the AOC approval process, the industry expects that normal flight operations will not be possible until at least the second quarter of next year.
An Eastar Jet official said, "We are currently focusing all our efforts on obtaining creditors' consent at next month's meeting," adding, "Regarding the AOC issuance, since we are seeking re-approval, we will review whether there are ways to simplify the procedure."
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