VIRUS HITS AVIATION AND TRAVEL INDUSTRY

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Aviation and travel industries are hit directly by the new coronavirus. As a last resort, many airlines and travel agencies are recommending their employees to take leave or retire early.

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February 5th, a plane from Shanghai arrives at Jeju International Airport. Not a single passenger was on board as Korea suspended the no-visa entry system to Jeju. Air travel to and from China has quickly declined. The impact was felt first by low-cost carriers, which saw their number of flights plunge by 80%. Air Seoul offered employees a special leave program for up to three months to anyone who wants time-off. It is the third airline in Korea to carry out this scheme. Last month, Jeju Air put some of its staff on unpaid leave and next month T'way Air will allow workers to request for leave.

[Soundbite] (AVIATION INDUSTRY EMPLOYEE) : "People are afraid to travel, so we're getting cancellations for flights even to Southeast Asia. Offering leave is a way to use manpower more efficiently and give employees a chance to recharge."

The travel industry is feeling the heat as well.

[Soundbite] (TRAVEL INDUSTRY EMPLOYEE(VOICE MODIFIED)) : "Reservations are being cancelled because major tourist destinations in China have been closed and normal travel plans are impossible. People are cancelling trips to other regions as well."

Hana Tour saw its reservation rate plummet by more than 60% on-year. Employees of Korea's largest travel agency can now work shorter hours and even those who have been with the firm for just a year can take a sabbatical. ModeTour started offering early retirement package to employees 40 years of age or older. Some duty-free shops are also encouraging pregnant workers or those with chronic illnesses to take leave. The novel coronavirus is adversely impacting the lives of people in many sectors linked to tourism.