"Airline Merger 'Integrated LCC' Headquarters Should Be Located in Busan, Where Air Busan Is"
by Kim Yongu
Published 26 Nov.2020 11:55(KST)
Updated 13 Aug.2025 00:37(KST)
Busan Chamber of Commerce: No Damage to Air Busan's Tangible and Intangible Corporate Value
Aiming to Create Stable Air Demand in Preparation for Gadeok New Airport Opening
[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] “Air Busan is protected by the Busan business community.”
Regarding the Ministry of Land, Infrastructure and Transport and the Korea Development Bank’s push for the merger of Korean Air and Asiana Airlines, the Busan Chamber of Commerce and Industry (Chairman Heo Yong-do) issued a statement on the 26th expressing the Busan business community’s position and demands concerning the integration of its three affiliated LCCs.
In the statement, Busan Chamber said, “Air Busan is a company created by the Busan business community to generate demand for the construction of the Southeast region’s new airport and to foster the local aviation industry,” adding, “We plan to pool all our capabilities and respond jointly with the local community to ensure that Air Busan’s corporate value is not damaged by this restructuring.”
Air Busan has established itself as a hometown company through region-tailored management and supplying quality jobs lacking in the area since its founding. It also emphasized that, along with the ongoing construction of Gadeok New Airport, Air Busan has the potential to grow into a world-class low-cost carrier.
The Busan Chamber also stated that Air Busan must be at the center of the integration discussions to prevent the tangible and intangible values Air Busan holds in the Busan region from being undermined by the talks on merging the three LCCs.
They clearly asserted that the headquarters of the integrated LCC should also be located in Busan to align with the Gadeok New Airport era.
They urged active fulfillment of promises made during the government and Korea Development Bank’s announcement of the integration plan.
Regarding the promise to establish a second hub for the integrated LCC based on regional airports, since the Ministry of Land, Infrastructure and Transport officially stated that “the integrated LCC will be able to operate newly based on regional airports,” they argued that the “regional” the Ministry refers to can only be Busan.
Among the three LCCs subject to integration, Jin Air and Air Seoul are based in the metropolitan area, so Busan, where Air Busan’s headquarters is located, qualifies as the regional airport the Ministry mentions.
Since the government said that some overlapping personnel issues caused by the LCC integration would be absorbed through pioneering new routes, they insisted that the promise to maintain employment without artificial restructuring after integration must be kept.
The Busan Chamber requested that, considering Air Busan has provided air travel convenience to local residents through community-focused management, the benefits for local consumers should not be compromised even after the LCC integration.
Chairman Heo Yong-do of the Busan Chamber said, “It is true that Air Busan has contributed greatly to the local economy as a regional airline. If the integrated LCC discussions are concretized centering on Air Busan, Busan can achieve significant results such as the enactment of the special law for Gadeok New Airport currently underway and attracting the integrated LCC headquarters.”
Chairman Heo expressed his determination, saying, “Busan can become a new hub city in Northeast Asia that generates explosive air travel demand, and we will not miss this opportunity together with the local community.”
According to the Busan Chamber, future plans may change depending on the outcome of the “injunction against third-party allotment of new shares,” which is the biggest obstacle to the Korean Air and Asiana merger. However, if the merger is concluded without issues, the Busan Chamber plans to hold an urgent meeting with the Busan City Council, business shareholders, and civic groups as early as early December to explore joint regional response measures for the LCC integration.
It is also known that the Busan Chamber is preparing to operate the “LCC Integration Headquarters Busan Attraction T/F Team.”
The statement released that day is scheduled to be delivered to six places: the Blue House, the Prime Minister’s Office, the Ministry of Land, Infrastructure and Transport, the Democratic Party of Korea, the People Power Party, and the Korea Development Bank.
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