Korean Air solely can cover paid leave after state subsidy for airliners sunsets this month

Korean Air Lines plans to pay for employees on leave from suspension of international passenger travel even after it loses half of government subsidy, while most other airliners can only pray they would not lose employees when they are converted to unpaid furlough. About 9,000, or nearly half on the payroll of South Korea’s No. 1 full-service carrier, are on paid leave, mostly supported by state employment retention subsidy offered to cope with the prolonged coronavirus. The government covers 90%, or up to 70% of monthly salary, and the rest by the company. Since the emergency subsidy sunsets by the end of this month, the company would have to entirely finance the furloughed employees who would otherwise have to seek unpaid government subsidy that can cover just half of monthly pay. “Some may have go on unpaid leave, but no one will be disadvantaged in regular pay or appointment,” the union said.<br/>