Report by : Gan Yung Chyan
/ KUCINTA SETIA
According to EastarJet, it has grounded most of its 23 Boeing B737-800 aircraft since 24 March 2020 and ended the contracts of 80 internship assistant pilots on 1 April 2020. Further due to deteriorating company financial performance and demand for returns of leased aircraft, it is conducting a major employee dismissal exercise in two batches.
As part of the airline's staff dismissal exercise, half of EastarJet's 750 employees are receiving letters of voluntary resignation applications on 3 April 2020 while the remainder will receive the letters of the same on 17 April 2020.
The list of voluntary resignations will be finalized on 24 April 2020 and the official notice of employee dismissals will be announced to the public on 31 May 2020.
Employees on the frontlines in essential services will be retained while employees on non-essential positions at the time of the pandemic will be quarantined. According to EastarJet, the number of remaining employees will be 930.
10 of 23 EastarJet's B737-800 jets that have ended lease period will be returned to aircraft lease firms. According to EastarJet, each returned jet is managed by 75 employees. So the 750 employees to be dismissed match the number of jets returned to the aircraft lease firms.
Jeju Air, South Korea's largest low-cost-carrier, said on 2 March 2020 it would buy a 51 per cent stake in EastarJet for 54.5 billion won (US$45.49 million). However, EastarJet has not officially announced the stake purchase by Jeju Air. As a result, EastarJet's employees have not received 40 per cent of their February salaries and 100 per cent of their March salaries.
Due to the COVID-19 pandemic and the continuing slump in South Korean passenger air traffic to Japan and other countries, EastarJet has reduced drastically its routes including routes in South Korea. It is operating only a few B737-800 jets on a few domestic and international routes.
/ KUCINTA SETIA
According to EastarJet, it has grounded most of its 23 Boeing B737-800 aircraft since 24 March 2020 and ended the contracts of 80 internship assistant pilots on 1 April 2020. Further due to deteriorating company financial performance and demand for returns of leased aircraft, it is conducting a major employee dismissal exercise in two batches.
As part of the airline's staff dismissal exercise, half of EastarJet's 750 employees are receiving letters of voluntary resignation applications on 3 April 2020 while the remainder will receive the letters of the same on 17 April 2020.
The list of voluntary resignations will be finalized on 24 April 2020 and the official notice of employee dismissals will be announced to the public on 31 May 2020.
Employees on the frontlines in essential services will be retained while employees on non-essential positions at the time of the pandemic will be quarantined. According to EastarJet, the number of remaining employees will be 930.
10 of 23 EastarJet's B737-800 jets that have ended lease period will be returned to aircraft lease firms. According to EastarJet, each returned jet is managed by 75 employees. So the 750 employees to be dismissed match the number of jets returned to the aircraft lease firms.
Jeju Air, South Korea's largest low-cost-carrier, said on 2 March 2020 it would buy a 51 per cent stake in EastarJet for 54.5 billion won (US$45.49 million). However, EastarJet has not officially announced the stake purchase by Jeju Air. As a result, EastarJet's employees have not received 40 per cent of their February salaries and 100 per cent of their March salaries.
Due to the COVID-19 pandemic and the continuing slump in South Korean passenger air traffic to Japan and other countries, EastarJet has reduced drastically its routes including routes in South Korea. It is operating only a few B737-800 jets on a few domestic and international routes.
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