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Jeju Air has decided to abandon the acquisition of Istar Air. We are planning to officially announce the termination of the contract as early as today (23rd). As a result of the merger and acquisition failure, Eastar Airlines will eventually go through bankruptcy, which may result in over 1,600 employees losing their jobs.

Reporter Ahn Sang-woo reports.

<Reporter> It

was reported that Jeju Air announced yesterday's cancellation of merger and acquisition agreement with Eastar Airlines.

Jeju Air's decision to destroy the contract is due to the fact that Easta Air has not been able to resolve over 130 billion outstanding payments, including overdue wages.

Jeju Air also announced on the 16th that "Ista Holdings was unable to complete the prerequisites, so the terms of the contract cancellation were met."

It is said that Jeju Air will officially announce the waiver of the acquisition of Eastar Air today.

In December of last year, Jeju Air decided to take over 51% of ISTA Holdings' shares held by ISTA Holdings for 55.5 billion won.

However, after the Corona 19 incident, Jeju Air and Easta Airlines have been in conflict over whether they are responsible for expenses such as delinquent wages.

The Ministry of Land, Infrastructure and Transport is known to reveal today the background of the breakdown of negotiations between the two sides and the mediation efforts that have been made between the two sides.

As mergers and acquisitions with Jeju Air become bankrupt, Easta Airways will likely go through bankruptcy.

The industry believes that entering into court management will have a greater likelihood of liquidation than corporate regeneration.

As a result, 1,600 employees of Easta Airlines, who had not agreed to return wages for over six months, were settled on the streets.