Troubled airline Flygangwon is seeking corporate rehabilitation.
According to the Gangwon Province on June 21, Flygangwon has recently submitted an application to the Seoul Regional Aviation Authority to suspend domestic flights until June 30. Flygangwon, which has also suspended international flights since the past three days, is expected to file for corporate rehabilitation on June 22.
As Flygangwon, which uses Yangyang Airport as a mortgage, suspended both domestic and international flights and filed for corporate rehabilitation, a red light has been lit on the revitalization of Yangyang Airport.
To prevent Yangyang Airport, which opened in 2002, from becoming a ghost airport, the province provided 14.5 billion won in financial support to Flygangwon, which first started operations in 2019. It also promoted a plan to designate Yangyang Airport as a pilot airport for inbound (tourism from foreign countries to Korea) with the Ministry of Land, Infrastructure, and Transport, and decided to invest 30.7 billion won in building a cargo terminal by 2026.
In addition, to attract foreign tourists, the visa-free immigration system was extended for another year until May next year.
Despite this support, the province is disappointed that FlyKangwon has suspended operations and filed for corporate rehabilitation.
The province’s policy is to promote the revitalization of Yangyang Airport regardless of the specific airline, but FlyKangwon’s application for corporate rehabilitation is likely to be a significant burden on the revitalization of Yangyang Airport.
FlyKangwon’s announcement that it will suspend operations until the 30th of next month is likely based on the expectation that the decision on whether or not to initiate corporate rehabilitation will be concluded during this period, as well as its stance that it will resume operations by any means necessary from July. If an airline suspends operations for more than 60 days토토사이트, its license is revoked.
However, if the rehabilitation application is rejected, Flygangwon’s suspension is likely to be prolonged.
In response, the city plans to closely discuss with authorities how to launch alternative flights in consultation with other low-cost carriers.