Transport ministry seeks to revoke Jin Air license

Transport ministry seeks to revoke Jin Air license. Yonhap

By Kim Hyun-bin

There is growing speculation that the transport ministry is inching toward stripping Jin Air of its operating license after giving it a grace period following an alleged violation of a transport law that prevents a foreign national from being a board member.

According to several local media outlets on Friday, the Ministry of Land, Infrastructure, and Transport is moving toward canceling the budget airline's air operator certificate, adding the ministry was reviewing measures to absorb possible fallout.

The ministry said it has not made a final decision, but plans to announce the results within the coming days.

“We are not 100 percent, but we are near completion. I expect the announcement to be made within this month,” said Vice Minister for Transport Kim Jeong-ryeol.

The biggest problem, among others, is how to deal with employees and minority shareholders of the low-cost carrier, owned by the nation's largest airline. Jin Air is the second-largest budget airline.

The ministry believes if another airline took over Jin Air, this could resolve the employee and shareholder issues. Jin Air has around 1,900 employees.

“We have been thoroughly reviewing the problems facing employment and stocks buyout,” senior ministry official said.

In the wake of the news reports, Jin Air remained guarded.

“We have not received official notification from the transport ministry, so we do not have an official statement on the matter and we are closely monitoring how the situation develops at this point,” Jin Air official said.

An internal inspection has been ongoing in the ministry following an allegation that Jin Air violated the transport law. Domestic and international logistics companies should not include a foreign national on their boards according to the law, but it was revealed Korean Air heiress Cho Hyun-min, a U.S. citizen born in Hawaii, had served on its board between 2010 and 2016.

The maximum penalty for the violation is cancellation of the airline's license.

There has been criticism that the transport ministry has been turning a blind eye toward the airline's unfair practices because the investigation only began following public fury over Cho and her family's abuses of power.

The scandal that started with an allegation that Cho had thrown water in an advertising executive's face during a business meeting led to a series of accusations of abuse of power by Cho's other family members.

Last month, Korean Air chief Cho Yang-ho resigned as CEO of Jin Air, amid numerous family scandals that have plagued the Hanjin Group.

The move is part of the airline's reforms to appoint professionals who are not part of the founding family, according to Jin Air.

Prosecutors have also sought an arrest warrant for Lee Myung-hee, wife of Chairman Cho, amid allegations she illegally hired Filipina housekeepers without proper visas. She is under a separate investigation for assault and abuse allegations.

Cho's oldest daughter, Cho Hyun-ah, was convicted over the infamous “nut rage” incident in 2014.

Cho was convicted of violating the Aviation Safety Law, after she forced a plane bound for Incheon back to its gate at John F. Kennedy International Airport.

She threw a tantrum over how her macadamia nuts were served in the first class cabin and had the cabin crew chief thrown off the plane.