August 19, 2020 13:09
Eastar Jet is making another attempt at a sale now a deal with Jeju Air has fallen through.
But the budget carrier has racked up W170 billion in unpaid bills, and the airline industry slump continues due to the coronavirus pandemic, which makes it a less attractive proposition (US$1=W1,185).
Eastar Jet has been in talks with two private equity funds who may be willing to take over on condition that it goes into receivership. That could allow the airliner to overcome its liquidity problems for now before it attracts fresh investment once the epidemic eases.
But to resume operations, the carrier needs a new air operator's certificate, which takes at least three months, while some pilots have lost their required flight hours due to grounded flights.
"Even if Eastar Jet somehow manages to resume domestic flights, it is uncertain how long it can survive as it wallows in losses," an industry insider said.
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