Eastar Jet may become grounded as govt questions accounting files for permit renewal

Korean budget carrier Eastar Jet readying for takeoff upon refueling under new ownership could become grounded as the government embarked on an audit on fraudulent accounting report. According to the land, infrastructure, and transport ministry Tuesday, it has confirmed falsified accounting in the files Eastar Jet submitted for renewal of license to add long-haul flight after the bankruptcy court approved of the sale and reorganization scheme in November 2021. The airliner received new permit on Dec. 15 by leaving out the fact that its assets were entirely overwhelmed with debt. It reported 365.4b won in capital surplus and 199.3b won in deficits. But under the disclosure of audited financial statement on May 13, reserve of 375.1b won was entirely overwhelmed by deficit of 485.1b won as of December 2021. Transport minister Won Hee-ryong said the ministry will carry thorough investigation and audit on violation of rules in the process of Eastar filling for new flight permit. “We will take strict actions based on the finding.”<br/>