Jin Air, Air Busan and Air Seoul Merger Approved... Integrated LCC to Launch in March 2027

Ministry, FTC Approve Merger
Safety Inspections and Foreign Approvals Required
Plans to Expand International Routes at Gimhae Airport

With the government approving Jin Air's absorption of Air Busan and Air Seoul, the launch of South Korea's largest low-cost carrier (LCC) on March 17, 2027, has come into view.

Jin Air, Air Busan, and Air Seoul Hold In-Flight Events for World Environment Day. Jin Air

The Ministry of Land, Infrastructure and Transport said on November 12 that it had approved Jin Air's merger with Air Busan and Air Seoul after reviewing the proposal under the Aviation Business Act. The Fair Trade Commission also approved the business combination filing by the three airlines.

The commission determined that the merger was presumed not to raise competition concerns, as all three airlines are affiliates of Hanjin Group. Once the merger is complete, Jin Air will remain as the surviving entity and absorb Air Busan and Air Seoul. The integrated airline is expected to operate more international and domestic routes than any other LCC in South Korea.

In its review of the merger, the ministry examined capital, financial capacity, and the suitability of the business plan. The review also included advice from a merger advisory panel made up of experts in aviation, consumers, employment, law, and accounting, as well as professional assessments by the Korea Transport Institute and an accounting firm.

The review found no disqualifying factors, such as de facto foreign control or foreign nationals serving as registered directors, and concluded that the merger met the statutory approval requirements.

However, the ministry imposed conditions requiring the airlines to complete inspections of changes to their safety operation systems and obtain approvals from foreign aviation authorities before the integrated airline launches. Jin Air must also submit regular monthly reports on whether it is carrying out the plans it submitted, including those related to consumer protection.

Jin Air's plan to develop Busan as its second hub will also move forward. The airline plans to increase the number of international routes at Gimhae International Airport from 28 to 33 and the number of weekly flights from 281 to 339.

The airline will expand recruitment of specialized personnel, including flight attendants and aircraft mechanics, and strengthen industry-academic partnerships with local universities. It has agreed to retain existing employees and avoid involuntary restructuring. It also plans to increase the number of aircraft based in Busan, maintain Air Busan's existing infrastructure, and develop Gimhae Airport into an independent maintenance hub.

The ministry plans to continue overseeing the implementation of Jin Air's plan to develop Busan as its second hub. It also recommended that Korean Air and Jin Air maintain close communication with the local community, including the Busan Metropolitan Government.

Park Junsang, director of the Aviation Industry Division at the Ministry of Land, Infrastructure and Transport, said, "We will closely oversee and supervise the process of integrating and operating Korean Air's large full-service carrier and LCC affiliates to ensure that safety issues do not arise and consumer convenience is not reduced."

As Korean Air's affiliated airlines grow in scale, the ministry also plans to consider measures to strengthen the competitiveness of other LCCs and foster a competitive environment among airlines.

This content was produced with the assistance of AI translation services.