Troubled carrier Asiana Airlines said on May 2 it has offered a voluntary retirement program in an effort to make itself more attractive ahead of its planned sale.
The early retirement offer covers Asiana employees with 15 years or more of continuous service at South Korea’s No. 2 airline.
Asiana will receive applications from volunteers till the middle of this month. Voluntary retirees will leave on June 30.
Early retirees will receive a lump-sum compensation equivalent to two years of salary, plus financial support for their children’s tuition.
“Asiana has decided to conduct the program to induce employees to join self-rescue efforts to pull (the airline) out of the current liquidity crisis,” a company official said.
The move comes after Asiana said it will carry out an unpaid leave program for all employees, except for pilots, flight attendants and repair crew.
Employees subject to the program will be allowed to take leave for between 15 days and three years. In February, Asiana initiated an unpaid leave scheme for section chiefs and higher-level officials.
In early April, Kumho Asiana Group, Asiana’s parent, submitted a fresh self-rescue plan to creditors in return for financial support, vowing to immediately start the process of selling Asiana.
Asiana has been under pressure to strengthen its financial health. The carrier owes financial institutions 3.2 trillion won ($2.75 billion) in short-term debt, with 1.2 trillion won of loans maturing this year.
By Ram Garikipati and newswires (firstname.lastname@example.org)