News
Asiana offers voluntary retirement, cuts routes
May 3rd 2019
Senior employees given two years’ of pay. Chicago and Russian cities cut. Read More »
Asiana Airlines is making initial cost cuts even though a restructuring plan is still to be determined. While the changes may seem sensible, implementing them without a larger strategy raises further concerns creditor KDB is making quick wins without a vision for Asiana. KDB previously wanted Asiana to sell its LCCs.
Asiana is offering headquarter and ground staff employees with at least 15 years of service the option to leave on 30 June with two years of pay plus school fees for any children. Asiana is also offering ground non-flight staff unpaid leave from 15 days to three years.
Asiana has not stated targets for headcount or salary reduction.
By the end of October, Asiana will end flights to Chicago.
By September, Asiana will end service to two Russian cities, Khabarovsk and Sakhalin. They had load factors of 63.9% and 56.8% - two of Asiana’s lowest routes based on load factor.
Asiana reportedly is evaluating weak routes in China and Japan. Cheongju-Beijing has a 51.4% load factor while Busan-Beijing has a 68.1% load factor and Busan-Sunyang 69.2%.
