Jin Air, Air Seoul, and Air Busan, three low-cost carriers (LCCs), have received government approval for their merger, set to launch as 'Unified Jin Air' on March 17, 2027. The government has imposed conditions for the merger, including the establishment of a safety operation system and the implementation of consumer protection plans, while ensuring that passengers do not experience inconveniences during the integration process through monthly inspections.
On November 12, the Ministry of Land, Infrastructure and Transport announced the approval of the merger, stipulating the need for a safety operation system and consumer protection measures. This approval marks the beginning of the integration process for Jin Air, a subsidiary of Korean Air, and Air Seoul and Air Busan, both subsidiaries of Asiana Airlines. The new airline is expected to become the largest low-cost carrier in the country.
Previously, the integration of Korean Air and Asiana Airlines' full-service carriers (FSC) is underway, aiming for a launch on December 17, 2026. If successful, both the full-service and low-cost carriers will operate under a unified system.
The merger has also passed the Fair Trade Commission's review, which indicated that the three companies are all part of the Hanjin Group and are presumed not to restrict competition based on merger review criteria.
The Ministry conducted the merger review according to the licensing standards set by the Aviation Business Act. The review involved consultations with a merger advisory group composed of experts from various fields, including the aviation industry, consumer protection, employment, law, and accounting, as well as specialized assessments from the Korea Transport Institute and accounting firms.
The review found no disqualifying factors regarding foreign control or the nationality of registered executives. It also determined that the merger met legal requirements concerning capital, financial capability, and business plan adequacy. However, conditions for safety operations and consumer protection were imposed.
Jin Air must complete inspections of the safety operation system and obtain approvals from foreign aviation authorities before the launch of the unified airline. Additionally, it is required to implement the consumer protection plan submitted.
The Ministry plans to receive monthly reports on the implementation of Jin Air's related plans to ensure that safety issues do not arise and that consumer convenience is not compromised during the merger process.
Furthermore, plans are underway to develop Busan as the second hub for the unified airline. Jin Air has proposed to expand international routes from Gimhae Airport from 28 to 33 and increase weekly flights from 281 to 339, adding five international routes and 58 weekly flights. The airline also plans to increase the number of aircraft based in Busan and add more routes originating from the city. Air Busan's existing infrastructure will be maintained while developing Gimhae Airport as an independent aircraft maintenance hub.
Regarding workforce management, the airline plans to expand recruitment of specialized personnel, including flight attendants and maintenance staff, and strengthen industry-academia cooperation with local universities. There are plans to retain existing employees and avoid any forced restructuring.
The Ministry believes that the establishment of the second hub in Busan will contribute to revitalizing regional airports and will continue to monitor the implementation of this plan. It has advised Korean Air and Jin Air to maintain close communication with the Busan city government, considering Air Busan's significance to the local community.
As the integration of Korean Air's affiliated airlines increases the scale of the company, the Ministry is also considering measures to enhance the competitiveness of other low-cost carriers to foster a competitive environment among airlines.
Park Jun-sang, head of the Ministry's Aviation Industry Division, stated, "We will strictly manage and supervise the integration process of the full-service and low-cost carriers to ensure that safety issues do not arise and consumer convenience is not diminished." He added, "As Jin Air becomes the largest LCC in the country, it must secure competitiveness in the international aviation market and enhance the convenience of air travel for the public."
* This article has been translated by AI.
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