Gov t unveils additional support to virus-hit airlines
Posted : 2021-03-03 13:45
Airplanes are parked at Gimpo International Airport, Feb. 23. Yonhap
South Korea on Wednesday unveiled another set of measures to support airlines hit hard by the COVID-19 pandemic in the latest move to help airlines stay afloat during the crisis.
The government will continue to reduce the airport usage fee for the airlines until June, the Ministry of Land, Infrastructure and Transport said in a statement, adding the fee will be lowered by 45.7 billion won (US$40.6 million). The ministry said it will later consider whether to extend the fee reduction again by taking into account air travel demand.
Virus-hit Jeju Air to receive state funding for survival |
A plane of Korean budget carrier Jeju Air off at Gimpo International airport in Seoul. (Jeju Air)
South Korea will inject 32.1 billion won (US$29 million) into the virus-hit budget carrier Jeju Air Co. to help it stay afloat amid the prolonged COVID-19 pandemic, a state lender said Thursday.
The Key Industry Stabilization Fund will extend 25.7 billion won in loans to Jeju Air and invest 6.4 billion won in the carrier s convertible bonds, the state-run Korea Development Bank, which operates the fund, said in a statement.
Jeju Air, the country s biggest low-cost carrier, is required to take steps, such as maintaining its current workforce, making efforts to improve its financial status, suspending payments of dividends to shareholders, the statement said.