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South Korea’s Jeju Air acquiring majority stake in Eastar Jet
Like other South Korean carriers, Jeju Air has been hit hard by the coronavirus outbreak.
However in one respect it has possibly been a blessing in disguise.
The airline has sealed a cut price deal for a majority stake in rival Eastar Jet.
It will buy a 51% stake for KRW54.5 billion (US$45.49 million).
According to a regulatory filing before the outbreak, the preliminary price before due diligence was KRW69.5 billion.
The airline hasn’t commented on whether the lower price is coronavirus related.
Eastar Jet said it is deferring 60% of employees’ February salaries to a later date.
Jeju Air also offered unpaid leave options for all employees.
"The management is well aware that there is concern among our employees about the Eastar Jet acquisition," Jeju Air CEO Lee Seok-joo said in an internal message to staff.
"However, the domestic airline industry will soon have to restructure. If it’s unavoidable, we believe it’s best to make a pre-emptive move."
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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