S.Korea decides to not revoke Jin Air's license; shares soar (updated)

Jin Air Co

17/08/2018 02:50

* Registering of new planes, routes restricted for period of
time
    * Shares up 16 pct 

 (Recasts and adds ministry comment)
    By Heekyong Yang
    SEOUL, Aug 17 (Reuters) - South Korea on Friday announced
its decision to not revoke budget carrier Jin Air's  272450.KS 
business license, which had been under review after it broke the
law with the appointment of a foreign national to its board.
    Its shares surged as much as 24 percent on the decision but
later pared gains to trade 16 percent higher after the 
transport ministry said it would restrict the carrier from
registering new aircraft and routes for a "certain period of
time."  
    Emily Cho, a member of the family which controls Korean Air
Lines Co Ltd  003490.KS  and affiliate Jin Air, holds U.S.
citizenship and served as a Jin Air board member between 2010
and 2016.
    The airlines and its controlling family have been under fire
 after Cho allegedly threw water into the face of an advertising
agency manager in an angry outburst earlier this
year. urn:newsml:reuters.com:*:nL3N1SG14V
    The incident sparked probes into her family and its
businesses by various government agencies and prosecutors. Cho
and older sister Heather Cho, who was jailed for delaying a
flight after objecting to the way nuts were served, no longer
hold any positions at Korean Air, Jin Air or affiliates.
    "The ministry factored in concerns about the employment of
Jin Air's employees, the potential inconvenience to customers
and losses for investors as well as the development of the
domestic aviation industry," the ministry said in a statement. 
    Jin Air said in a statement it welcomed the decision to not
revoke its license.

 (Reporting by Heekyong Yang, Additional reporting by Hyunjoo
Jin; Editing by Edwina Gibbs)
 ((Heekyong.Yang@thomsonreuters.com; +82 2 3704 5647; Reuters
Messaging: heekyong.yang.thomsonreuters.com@reuters.net))