Strikes cripple Korea's airlines

Bloomberg News Service

SEOUL — Strikes disrupted services of Korean Air Co. and Asiana Airlines Co. and threatened to spill over into other industries as unions stepped up pressure for increased pay and job security.

The strikes will cost the nation's two biggest carriers $19.4 million a day, the airlines said.

The strikes came after more than 55,300 union members in public transportation and other industries threatened joint action over annual pay rises and corporate reorganization plans involving job losses, the Korean Confederation of Trade Unions said.

The government has warned the disruption could harm the country's economic recovery by deterring foreign investors and may compound damage to growth caused by the worst drought in two decades.

Both airlines have flights to Hawai'i, but the effect of the strikes was expected to be minimal.

Korean Air, Asia's largest cargo airline, canceled 80 percent of its flights, and will operate only 68 flights today.

The strike at Asiana Airlines forced the airline to cancel 60 percent of its 205 domestic flights. The action won't affect the airline's international flights.