Korean Air might collapse if COVID-19 persists
Aviation Updates Philippines – South Korea's national flag carrier Korean Air has expressed its serious 'survival' concerns brought by the sudden collapse of the travel and tourism industry as the Coronavirus Disease 2019 (COVID-19) threat continues to linger globally.
In a report from Reuters, Korean Air President Woo Kee-hong released an internal memo to its employees where he wrote his concerns about how long the pandemic will last. The continued damaging effect on the global economy may lead to the collapse of Korea's biggest airline anytime soon.
"But if the situation continues for a longer period, we may reach the threshold where we cannot guarantee the company's survival," Korean Air's chief said in the released memo.
Korean Air was forced to ground 100 aircraft from its 145-strong fleet just a few months after the outbreak emerged. Due to the decline of passenger demand and the imposition of travel restrictions in several countries, the airline has cut its international capacity by up to 80 percent.
According to BBC, the purpose of the memo was "to encourage employees and ask for understanding to overcome the crisis together". Korean Air, among other airlines, has asked its employees to take voluntary leave to help reduce costs for the struggling industry.
"We have gone through numerous difficulties for the past 51 years, and I'm confident that we will overcome this crisis together," the airline's highest official said.
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| STRUGGLING BUSINESS. Korean Air, amid the negative impacts of the outbreak in the company, continues to be positive as it continues to try to save the airline. Seen here in the photo is a Korean Air crew wearing protective suits to disinfect an Airbus A380 aircraft in the background. Photo from Korean Air. |
"But if the situation continues for a longer period, we may reach the threshold where we cannot guarantee the company's survival," Korean Air's chief said in the released memo.
Korean Air was forced to ground 100 aircraft from its 145-strong fleet just a few months after the outbreak emerged. Due to the decline of passenger demand and the imposition of travel restrictions in several countries, the airline has cut its international capacity by up to 80 percent.
According to BBC, the purpose of the memo was "to encourage employees and ask for understanding to overcome the crisis together". Korean Air, among other airlines, has asked its employees to take voluntary leave to help reduce costs for the struggling industry.
"We have gone through numerous difficulties for the past 51 years, and I'm confident that we will overcome this crisis together," the airline's highest official said.
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