Eastar Jet (ZE, Seoul Gimpo) has asked cabin crew to take unpaid leave as part of an emergency cost-cutting plan, as the Boycott Japan movement, the grounding of its two B737-8s, and a weak currency bring mounting losses. From October to December, 500 flight attendants will have to take up to one month of unpaid leave, the Korea Times reported.
Eastar has suffered tens of billions of won in losses, according to Reuters. It is facing its “biggest crisis” since it launched operations in January 2009, CEO Choi Jong-gu said in an internal memo that was later taken down from its website due to concerns among employees.
“The scheme is a measure to drill down on costs, as we are facing challenges caused by a weaker local currency and declining travel demand to Japan,” a company spokesperson told Reuters. “We will also skimp on unnecessary corporate gatherings.”
“We initiated the unpaid leave option in the past, during the MERS outbreak. Employees who go on leave will not face disadvantages,” an Eastar Jet representative assured the Korea Times.
Flights to Japan accounted for 46% of Eastar’s international routes in 2018, according to South Korea's transport ministry, but many Koreans have been avoiding travel there since July due to deepening trade and historic disputes. Meanwhile, the won has weakened by over 6% so far this year.
Eastar Jet's fleet of 23 aircraft currently includes the two inactive MAX 8s as well as nineteen B737-800s and two B737-900(ER)s.
