Gangwon-do "Disappointed Despite 14.5 Billion Won Support"
Fly Gangwon is reportedly planning to file for corporate rehabilitation due to financial difficulties, deepening Gangwon Province's concerns over efforts to revitalize Yangyang International Airport.
According to the province on the 21st, Fly Gangwon recently submitted a suspension of operations application to the Seoul Regional Aviation Office and will completely suspend domestic flights until June 30.
Fly Gangwon had already suspended international flights since the 3rd. It is reported that the company will file for corporate rehabilitation on the 22nd.
With Fly Gangwon, which uses Yangyang Airport as its base, suspending both domestic and international flights and proceeding with corporate rehabilitation, a red light has been lit for the airport's revitalization.
To save Yangyang Airport, which opened in 2002, the province provided Fly Gangwon, which first started service in 2019, with 14.5 billion KRW in financial support. Together with the Ministry of Land, Infrastructure and Transport, they pursued designating Yangyang Airport as a pilot inbound (tourism from abroad to Korea) airport. They also decided to invest 30.7 billion KRW by 2026 in projects such as building a cargo terminal. To attract foreign tourists, the visa-free entry system was extended for one more year until May next year.
The province could not hide its disappointment as Fly Gangwon suspended operations and filed for corporate rehabilitation. However, the plan is to promote the revitalization of Yangyang Airport regardless of any specific airline.
Fly Gangwon's announcement to suspend operations until the 30th of next month seems to reflect its intention to resume flights somehow starting in July. If an airline suspends operations for more than 60 days, its license is revoked. Fly Gangwon is in a position where it must exert all efforts to avoid this.
However, if the corporate rehabilitation application is rejected, the suspension of Fly Gangwon's operations may be prolonged.
The province plans to closely discuss with relevant authorities measures such as negotiating with other low-cost carriers to operate replacement flights to prevent the situation from worsening.
Yangyang Airport appears quiet. Only 2 to 3 staff members are working on-site, and the electronic boards indicating flight departures and arrivals are turned off.
Yangyang International Airport opened on April 2, 2002. It was built in Hakpo-ri, Sonyang-myeon, Yangyang-gun, Gangwon Province. From the early days of its opening, the airport struggled as airlines operating there withdrew one after another. Thanks to Fly Gangwon's flights, the number of passengers increased to 384,642 last year, the highest in eight years.
Fly Gangwon's inability to withstand financial difficulties caused by COVID-19 and its move toward corporate rehabilitation have triggered a warning signal for the airport's management. A provincial official said, "We have supported Fly Gangwon despite difficult conditions, so it is disappointing that the situation has come to this. We will find ways to ensure that Yangyang Airport can serve as a base regardless of any specific airline."
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