Government sources said Sunday that Korea's commercial airline companies will receive tax breaks and easing of regulations to compensate for losses in revenue following the terrorist attacks on the United States.
The Ministry of Construction and Transportation said that repercussions from the attacks, including the possibility of war, hikes in insurance premiums, erratic fuel prices, and a drop in passengers were causing problems for the country's air carriers.
An official from the ministry's aviation bureau said that they have decided to accept some of the requests made by Korean Air (KAL) and Asiana so they could overcome current hard times.
He said that the government would ask passengers, instead of the airlines, to foot the bill on insurance fees collected to pay for damages in the event of war, and temporarily allow the cancellation of routes that are not profitable.
The measures mean that passengers will have to pay an extra 1.25 dollars when they board planes starting next month, while allowing KAL and Asiana to save $2.5 million and $1.36 million annually.