South Korea’s flag carrier Korean Air Lines Co. with 90 percent of its fleet grounded from standstill in air travel due to global pandemic is sending more than 70 percent on its payroll on paid leave, with the help of government subsidy.

The nation’s largest full-service carrier announced Tuesday that it will leave minimum staff in the country and have the rest go on a leave starting April 16 to October 15. The number could involve more than 70 percent of the employees.

Korean Air’s labor union said in a statement that it agreed to a six-month paid leave to avoid layoff and share the burden.

The airline will pay out basic salary during the furlough as the government has promised to cover maximum 90 percent of the payroll expense for the air industry.

The company’s vice presidents and higher-ranking executives have already offered to return 50 percent of their monthly wage, executive directors 40 percent and managing directors 30 percent until the business returns to normalcy.

The company will aggressively seek to sell non-core assets and raise funds to enhance its financial soundness.

Korean Air has stopped servicing nearly 90 percent of its international flights. More than 100 passenger jets out of its 145-strong fleet sit idle.

The air carrier has 500 billion won ($409.4 million) worth debts maturing within the year of which 240 billion won is due in April. It spends an average of 880 billion won in operating cost excluding depreciation cost and interest payment every month.

The South Korean government that last month announced a 100 trillion won worth relief package for both large and small businesses is reportedly setting up a separate measure to aid industries hit hard by the COVID-19 pandemic, including the airline industry.

On Wednesday, shares of Korean Air fell 0.26 percent to close at 19,100 won.

By Song Gwang-sup and Choi Mira

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]