Eastar Jet to Lay off Hundreds of Workers

Ailing low-cost carrier Eastar Jet will lay off some 800 out of 1,300 employees as it searches for a new buyer after Jeju Air walked away from a deal.

According to airline industry insiders on Aug. 21, Eastar Jet plans to announce the downsizing plans on Aug. 31 and lay them off by the end of September.

Management has already informed workers and the labor union that drastic downsizing is essential for the carrier to stay afloat. At the moment it cannot pay its staff because it halted all flights in March and has made no money in the last five months.

Eastar Jet aims to look for a new buyer after applying for court receivership next month.

Meanwhile, budget carriers Jeju Air, Jin Air and Air Busan have won a fresh lease of life after the government extended financial support for another 60 days on top of the initial 180 days.