[Seoul 18th Reuters]-South Korea's low-cost airline (LCC) Easter Airlines has clarified an urgent cost-cutting plan and has asked cabin attendants to take unpaid leave, as losses increase due to domestic and foreign factors.
Korean airlines, such as Korean Air <003490.KS> and Jeju Air, the largest LCC in the country, are second in response to the suspension of some Japanese flights due to weak travel demand and the deterioration of Japan-Korea relations. Quarterly results are in the red.
A spokeswoman for Easter Airlines cited the CEO's comment in an internal memo posted on the website, and the company was founded with a loss of tens of billions of dollars due to domestic and international circumstances. He explained that he has been facing the “greatest crisis” since then. Notes have been removed from the website due to growing concerns among employees.
Easter Airlines requested flight attendants to take up to four weeks of unpaid leave later this year to overcome the sluggish passenger business.
A spokesman said, “This is a measure to tackle cost reductions in the face of challenges due to the weak won and a decline in demand for Japan.”
According to the Ministry of Land, Infrastructure, Transport and Tourism, Japan accounted for 46% of international flights last year. Currency won has fallen by over 6% this year.
