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KOREAN AIR RECEIVED SUBSIDY LOANS

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KOREAN AIR RECEIVED SUBSIDY LOANS

Old 7th Aug 2020, 05:08
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As continued losses in the second quarter are expected for the aviation industry over COVID-19 pandemic, the South Korean government is expected to roll out an upgraded support measure for cash-strapped air carriers this week, according to the government sources on Sunday.

According to the government, the fifth round of emergency economic council meetings presided over by President Moon Jae-in is set to take place this week.

President Moon has been reiterating the need to support ailing companies amid the economic downturn stemming from the impact of the COVID-19 pandemic.

“The government will preferentially support the companies which retain job security through management-labor agreement,” President Moon said in a speech during a ceremony to mark the 60th anniversary of the 1960 pro-democracy revolution on Sunday.

Local media outlets reported the same day that a fresh set of measures expected to roll out this week are likely to include the government guaranteeing 20 trillion won ($16.4 billion) in corporate bonds. The bonds are expected to help support air carriers like Korean Air and Asiana Airlines, which have to pay back loans worth a combined 2.5 trillion won by year-end, media reported.

But the Ministry of Economy and Finance released a statement that nothing has been confirmed on the agenda of the meeting and the details of the measure.

If executed, it would be the third set of support measures for the aviation industry in two months. In February, the government announced it would extend loans worth a total of 300 billion won to airlines facing a liquidity crunch through the state-run Korea Development Bank. The government has also allowed air carriers to defer airport usage fees.

Last month, the government also rolled out a plan to inject some 50 billion won to help the transport sector by exempting fees and delaying payments to cover the businesses’ losses caused by a sharp drop in passengers.

But earlier this month, the Korea Civil Aviation Association submitted a petition to the government to exempt all taxes and to increase subsidies for “practical support.” This led to the Jung-gu district office in Incheon and Gangseo-gu district office in Seoul to review a legislation revision on decreasing property taxes for aircraft.

Korean Air, which has suspended 90 percent of its flight routes, has shut down the majority of its international routes, which contribute to 94 percent of its sales. Despite the limited income, the air carrier has been spending at least 400 billion won monthly for stationing aircraft at parking ramps, as well as paying rental fees for leased planes.

Asiana Airlines has also extended all employees’ unpaid leave for at least 15 days, until business volume is “normalized,” according to the company on Sunday.

By Kim Da-sol ([email protected])

Government to roll out additional support plan for COVID-19-hit aviation industry


Kentot Besar is offline  
Old 14th Aug 2020, 19:37
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Earlier I wrote of a friend’s experience with his agency about latest LWOP extension. No wage subsidies considered.

That post was rejected outright...

PPRuNe utterly [email protected]@@@@

Last edited by billabongbill; 15th Aug 2020 at 09:15.
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Old 6th Sep 2020, 17:41
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I hear that guys are having their contracts renewed, but without pay. Only B777 I understand. But that's better than no renewals.
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Old 6th Sep 2020, 21:40
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EVEN if contracts renewed on worthless paper or email screens, the fact remains that many had the medical licence lapsed . Also most have expired flight licences.
When time for recall comes, KAL will still trim many off
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Old 7th Sep 2020, 10:20
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Originally Posted by captain8 View Post
I hear that guys are having their contracts renewed, but without pay. Only B777 I understand. But that's better than no renewals.
Also 330 and 747 guys have the contract renewed... Not all, but most of them.... But at this stage contract renewal is easy.... Zero costs for KAL and they have a number of desperate pilots waiting to get recalled. And then most likely with huge paycuts.....
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Old 19th Sep 2020, 02:16
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Heard that KAL may be recalling some pilots on the B777 and B747. Own ticket back to ICN followed by 14 days quarantine at own expense to be reimbursed later. No pay or per diem until released from quarantine.
Then retraining and requalification.

Any more updates, anyone?
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Old 19th Sep 2020, 02:43
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Those that are desperate will do it .
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Old 19th Sep 2020, 07:46
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Under today's conditions that would mean just about everyone.
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Old 19th Sep 2020, 14:00
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Not necessarily!
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Old 19th Sep 2020, 15:15
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A consideration for pilots offered the recall is they will now be ICN-based until the Korean government lifts the quarantine requirement , meaning, they will not be unable to return to their homes on their days off. God only knows how long the quarantine might stay in place: one more month? One more year? Quite a gamble for those that have real lives that have not been dedicated to the Cho's. The ICN-base is necessary, that is beyond company control, but I am sure the miserly millionaires are elated by this as they can keep a few extra Won in their pockets by claiming "ICN-based" pilots are not eligible for per diem whilst in ICN.
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Old 19th Sep 2020, 17:00
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Originally Posted by Charlie Zogs View Post
A consideration for pilots offered the recall is they will now be ICN-based until the Korean government lifts the quarantine requirement , meaning, they will not be unable to return to their homes on their days off. God only knows how long the quarantine might stay in place: one more month? One more year? Quite a gamble for those that have real lives that have not been dedicated to the Cho's. The ICN-base is necessary, that is beyond company control, but I am sure the miserly millionaires are elated by this as they can keep a few extra Won in their pockets by claiming "ICN-based" pilots are not eligible for per diem whilst in ICN.
Do you really think anyone will pass up the opportunity to secure their job after waiting 6 months, worrying whether they'll even have a job to go back to? Let's be real. Everyone will go back if they get selected. How about you Charlie, will you go back if they called you back for next month?
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Old 19th Sep 2020, 18:12
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Originally Posted by fatbus View Post
Those that are desperate will do it .
Living in 2019 is an excellent coping mechanism.
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Old 19th Sep 2020, 19:48
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Again, I think you might be surprised that not all are clambering to get back under undesirable terms. Especially the lack of commuting . The prime reason most went to KAL. But each to his own !
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Old 19th Sep 2020, 21:10
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I agree 100% but calling anyone that returns desperate is a bit of junk punch. Set a timeline If you go back, at least you can reevaluate while your collecting pay and keeping current.

Last edited by BeeforBeef; 19th Sep 2020 at 22:20.
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Old 20th Sep 2020, 19:40
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Under normal conditions I believe commuting expat crew leave and enter Korea on the flight in uniform and on GD. This should not make mandatory quarantine as a passenger an issue. I know nothing of permanent ICN base being asked of for anyone returning. Are people being recalled or just a rumor?
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Old 21st Sep 2020, 05:12
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Plenty of cash going around as it seems: https://www.ch-aviation.com/portal/n...edium=linkedin
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Old 21st Sep 2020, 07:29
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Per diem in ICN

Where did this rumor of no per diem in ICN begin? The 747 skippers that stayed in ICN after the LWOP receive ICN perdeim
The Turtle is offline  
Old 21st Sep 2020, 14:23
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Contracts now being renewed and guys recalled to fleet.

No mention of any change in T&Cs, ie start at basic year 1 pay .

Tough on those already released over the last few months. Shouldn’t be too long before KAL start running recruitment again, due to too many guys let go!
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Old 21st Sep 2020, 14:26
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Originally Posted by dkk1 View Post
Do you really think anyone will pass up the opportunity to secure their job after waiting 6 months, worrying whether they'll even have a job to go back to? Let's be real. Everyone will go back if they get selected. How about you Charlie, will you go back if they called you back for next month?
Yes. I do. 100% chance of it. As for me, will I go back? My family is driving me crazy and I certainly wish to return. However, it's not entirely my decision, and I am obligated to respect the wishes and opinions of others.
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Old 21st Sep 2020, 19:30
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Originally Posted by captain8 View Post
Contracts now being renewed and guys recalled to fleet.

No mention of any change in T&Cs, ie start at basic year 1 pay .

Tough on those already released over the last few months. Shouldn’t be too long before KAL start running recruitment again, due to too many guys let go!
i don't think they will start recruiting again unless the country will remove the quarantine restriction
bongo bongo is offline  

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