Korean LCCs to undergo drastic restructuring

Domestic LCCs are feared to undergo drastic restructuring one after another starting later this year, as losses from currency exchange, declines in the number of passengers to Japan and soaring oil prices threaten their feasibility, industry officials said Thursday. They said many firms will likely follow in the footsteps of Eastar Jet, which began downsizing its workforce recently, and stressed that the govt's excessive issuing of LCC licenses has left carriers vulnerable to such difficulties. According to Eastar, CE Choi Jong-gu told employees recently that the company was dealing with "an emergency" and thus required plans to overcome the crisis. "We have accumulated tens of billions of won in losses and the company's survival will be threatened if the current crisis continues," Choi said. <br/>