South Korea’s Asiana Airlines announced on Tuesday that it will suspend three international routes, starting early July, and cease the operation of first-class cabins in September in a bid to boost profitability amid leadership changes for the carrier, reported Reuters.
The three routes to be axed include flights from South Korea’s Incheon to two Russian cities, Khabarovsk and Sakhalin, and Delhi in India, starting July 8.
As part of its cost-cutting efforts, the country’s second-biggest airline had revealed that it would also eliminate its first-class seats starting September, and instead offer cheaper premium seats called Business Suite.
Kumho Industrial, the top shareholder of Asiana Airlines, said last month it would sell its entire stake in the debt-laden carrier and later hired Credit Suisse to manage the stake sale.
Amid rising fuel costs and competition from LCCs, the troubled carrier has already sold assets to improve its financial health and reduce debt from aircraft purchases.
Asiana’s creditors have said it would provide 1.6 trillion won ($1.37 billion) in financial support to the airline, alleviating liquidity problems, the Reuters report added.