Korean Air announced Monday the temporary suspension of flights between Incheon International Airport and Atlanta via Dallas; Newark; Sao Paolo, Brazil; Zurich, Switzerland; and Amsterdam, the Netherlands, starting from Thursday until mid-December. KAL is also planning to reduce flights between Incheon and Washington, Hawaii, Hong Kong, Tokyo and Los Angeles. As a result, the number of Korean Air’s US bound flights will drop by 21%, from a weekly 62 to 49 and its international schedule will be reduced by 7% to 309 from 332. In addition, the airline will suspend operations on deficit routes from Gimpo to Kunsan, Yecheon, Seokcho, and Pohang, and from Busan to Mokpo.

Asiana Air will also adjust its flight schedule by suspending or reducing flights with low seat occupancy rates, such as international routes to North America as well as domestic operations from Busan to Gwangju and Ganneung and between Gimpo and Yecheon.

Both airlines claim that the terrorist attack in the US added more deficit to their already unstable financial situation caused by a rise in oil prices and labor strikes in June. The two airline companies requested the Ministry of Construction and Transportation for exemption from aviation tax and government aid for security fees in addition to the reduction in number of flights. Also, the two suggested that the newly enforced war compensation liability premium of US$1.25 per passenger, which insurance companies will charge from October, to be included in the airfare. The ministry accepted the airlines’ request conditional to their own efforts for self-help.

KAL and Asiana recorded deficits of W345.9 billion and W156.3 billion, respectively, over the first half of the year, and estimates these will increase by an additional W222 billion and W130 billion each by the end of the year. The two carriers said that passengers to the US decreased by over 20% since the terrorist attacks, and some domestic route occupancy rates are less than 50% on average, resulting in difficulties in justifying the continuation of operations.

(Choi Hong-ryeol, hrchoi@chosun.com )