A lawsuit seeking more than 2 trillion won in damages from Asiana Airlines (020560) over alleged discriminatory treatment during check-in has been dismissed. A U.S. court found that the plaintiffs had failed to follow required procedures for filing the case.
Claim of Racial Discrimination During Check-In, With Damages Sought of 2.35 Trillion Won
Asiana Airlines disclosed through the Financial Supervisory Service's electronic filing system on the 28th that the damages suit, filed in the U.S. District Court for the Northern District of California, was dismissed on the 22nd.
The suit was filed on March 9 by two passengers, including Iana Rodionova, a Russian national, against Asiana Airlines and other defendants.
The dispute arose while the passengers were boarding a flight to Incheon at Da Nang International Airport in Vietnam. The plaintiffs alleged that the airline treated them in a racially discriminatory manner while checking their travel documents.
They said they suffered emotional and financial harm in the process and sought punitive damages in addition to compensatory damages.
The amount claimed was $1.7547 billion, or about 2.3522 trillion won, equivalent to roughly 228% of Asiana Airlines' consolidated shareholders' equity of 1.2995 trillion won as of the end of last year.
The figure, however, was the total claim against all co-defendants, including Asiana Airlines. The airline alone was not asked to pay more than 2 trillion won in damages, and the amount sought from each defendant was not specified separately.
In a disclosure on the 14th regarding the litigation, Asiana Airlines said the plaintiffs were taking issue with routine check-in and travel document verification procedures.
The airline said it had not discriminated against the passengers on the basis of nationality or any other ground, but had verified the documents required for international travel. It added that its staff had worked to assist the passengers even while facing communication difficulties.
Court Cites Failure to Obtain Prior Approval, Awards Nothing
The U.S. court found a procedural defect in how the suit was brought, before taking up the substance of the plaintiffs' allegations.
The court said it dismissed the case because the plaintiffs had failed to comply with pre-filing approval requirements that had been individually imposed on them.
The suit was dismissed on the 22nd, and the judgment amount recorded in the disclosure was set at zero won. Asiana Airlines confirmed the decision through its local counsel the following day, the 23rd.
The ruling, however, was not a substantive determination by the court on whether racial discrimination had occurred.
The court dismissed the case on the ground that the procedures required to bring the suit had not been followed. The decision therefore did not establish that the plaintiffs' discrimination claims were false, nor did it confirm that the airline had engaged in discrimination.
The legality of the routine travel document checks cited by the airline was likewise not decided on the merits.
Airlines operating international routes must verify passengers' passports, visas and other travel documents and confirm that travelers meet the entry requirements of the destination country. The case is an example of a conflict arising during such checks escalating into a large damages claim.