Rupture of Eastar Jet deal hits credit card issuers
KB Kookmin Card CEO Lee Dong-cheol, left, and Samsung Card CEO Kim Dae-hwan. / Courtesy of each companyBy Park Jae-hyukCredit card issuers have fallen unexpected victims to the collapse of the Eastar Jet takeover deal, as they are unlikely to get around 10 billion won ($8.4 million) back from the cash-strapped low-cost carrier, according to industry officials, Tuesday.After a massive cancellation of flights due to the COVID-19 pandemic, card firms have refunded customers whose flights were cancelled, on behalf of liquidity-crunched airlines which had asked card firms in March to allow a grace period. Back then, officials discussed the matter at the Credit Finance Association headquarters in Seoul.Other air carriers, including full-service carriers like Korean Air and Asiana Airlines, have repaid card firms since April, but Eastar Jet could not do this due to its severe financial difficulties. Card firms had therefore sought to receive payment later from Jeju Air which signed a deal with Eastar Holdings in March to acquire a controlling 51.17 percent stake in Eastar Jet for 54.5 billi
Aug 11, 2020By Park Jae-hyuk