The Korean government on Friday ordered Asiana Airlines to suspend its services to San Francisco for 45 days as a penalty for its passenger jet accident in the U.S. city last year.

Under local aviation laws, the crash-landing accident at the San Francisco Airport on July 6 last year, which caused three deaths and 49 severe injuries, is grounds for a 90-day business suspension.

But the Ministry of Land, Infrastructure and Transport, the government office in charge of the sanction, said the penalty was reduced on account of the selfless evacuation efforts by the flight attendants.

Asiana, however, immediately refuted the decision, saying it would raise an official objection and consider a lawsuit if necessary. The company has appealed for a fine as opposed to a business suspension.

“The decision did not consider national interests and passengers’ inconvenience,” the company said in a statement. “We will explain our stance again through the review process and consider a lawsuit.”

Asiana may appeal the ministry’s decision within 10 days. If it is accepted, a review committee will convene once more to finalize the penalty as early as next month.

The Incheon-San Francisco route, with an occupancy rate of nearly 80 percent, is one of the most lucrative long-hour routes for Asiana, the nation’s No. 2 air carrier. The company operates a B777 aircraft with 248 seats on the route daily.

Korean Air, United Airlines and Singapore Airlines also operate daily flights on the route.

Industry watchers predict that Asiana could see 15 billion won ($13.6 million) in sales losses following the business suspension with its global brand image being severely tarnished.

Korean Air, the nation’s biggest flag carrier, has urged stricter sanctions against its local rival, and also expressed regret over the business suspension.

“We cannot accept the reduced penalty,” the company said in a statement. “Considering that the government has imposed the highest-level of sanction on Korean Air in the past, a lighter sanction on Asiana cannot be viewed as fair.”

In 1997 when a Korean Air flight crashed at the Guam Airport and 229 passengers died, the company was slapped with a business suspension of two years on the route.

Meanwhile, changing global trends have rendered sanctions following accidents less common. According to the U.S. Federation Aviation Administrative, a dozen aircraft accidents ― six of which were considered fatal ― have been exempt from penalties since 2000.

By Lee Ji-yoon (jylee@heraldcorp.com)