Eastar Jet's pilots union kicked off a hunger strike Wednesday to protest the budget airline’s laying off of more than 600 employees.
Embattled Eastar Jet said Monday it will reduce its workforce by more than half as part of efforts to find a new investor after Jeju Air scrapped its plan to acquire the smaller budget carrier amid the coronavirus pandemic.
Jeju Air, Korea's biggest low-cost carrier, on Tuesday announced a revised second-quarter earnings report, which showed the company posted larger net losses than initially estimated due to the unsuccessful acquisition of debt-ridden Eastar Jet.
Jeju Air reported a devastating second quarter performance, with its on-year net profit plummeting almost 200 percent.
Eastar Jet’s pilot union reported founder Lee Sang-jik to the prosecutors for tax evasion and lying on disclosure forms filed for his National Assembly candidacy.
Hours after Jeju Air made its announcement, Eastar Jet said it can't scrap the deal without violating a stock purchase agreement signed by the two parties in March.
Jeju Air abandoned its acquisition of cash-strapped Eastar Jet, saying its shareholders didn’t think it was a good idea.
Jeju Air claimed Thursday it now has the legal right to call off its acquisition of debt-laden Eastar Jet, a move that would not only likely doom Eastar but may also bring into question the acquisition of Asiana Airlines.
Airlines are flying more international routes as travel restrictions imposed by foreign countries on visitors are being eased. Domestic routes are also returning.
Eastar Jet and Jeju Air continue going around in circles as they trade claims and counterclaims and get no closer to a resolution.