Jin Air, Air Busan, Air Seoul to merge into single carrier by March 2027

South Korea’s three major low-cost carriers, Jin Air, Air Busan, and Air Seoul, are set to merge into a single entity operating under the Jin Air brand by March 17, 2027. The decision was formally approved by the boards of all three companies during a meeting held on Friday, with the formal merger agreement signed shortly thereafter. Shareholders are expected to vote on the proposal in December, followed by regulatory approvals necessary to finalize the consolidation. The merger comes amid broader restructuring within South Korea’s aviation sector. Earlier this year, Korean Air and Asiana Airlines, the parent companies of Jin Air and Air Busan/Air Seoul, respectively, announced their own planned merger, scheduled to take effect on December 17. This latest development marks another step toward consolidating the country’s aviation industry under fewer, more powerful entities. According to Jin Air, the merger aims to integrate the three carriers’ networks, fleets, and operational capabilities to achieve greater efficiency and expand service offerings. The company emphasized that combining these resources would allow the merged entity to realize economies of scale, enhance route coverage, and improve overall service quality. In a statement, Jin Air described the merger as “an important turning point” that would consolidate the strengths of each airline to establish a new foundation for growth in Korea’s low-cost carrier market. The terms of the merger specify that Jin Air will absorb the assets, liabilities, rights, obligations, employees, and legal standing of both Air Busan and Air Seoul. The exchange ratio has been set at one share of Jin Air for every 0.29 shares of Air Busan and 0.75 shares of Air Seoul. This structure reflects the relative valuations of the three companies prior to the merger. One of the critical steps ahead involves obtaining an Air Operator Certificate, which is required for any airline to legally operate as a single entity. Jin Air intends to incorporate Air Busan’s and Air Seoul’s fleets and operations into its existing certificate in phases. The goal is to secure a safety inspection from the Ministry of Land, Infrastructure and Transport well in advance of the merger deadline. To prepare for the integration, the three airlines have already begun aligning their operations, cultures, and personnel. Joint pilot and crew training programs have been launched, along with standardized manuals and shared staff development initiatives. Social events and cultural exchanges have also been organized to foster unity among employees across the three former organizations. Upon completion, the newly formed airline will hold the distinction of being South Korea’s largest low-cost carrier by number of aircraft, with a total fleet of 58 planes. This represents a significant increase in capacity compared to any individual carrier currently operating in the market. The merger follows years of strategic planning and collaboration between the three airlines, which are all part of the Hanjin Group. Their decision to unify reflects growing competition in the regional aviation market and the need for larger-scale operations to remain competitive. With the combined resources of Jin Air, Air Busan, and Air Seoul, the new entity is positioned to play a dominant role in South Korea’s domestic and international air travel landscape. Efforts to obtain regulatory clearance and shareholder approval are ongoing, with the final steps expected to be completed by early 2027. The merged airline is anticipated to begin operations on schedule, marking a new era in the evolution of South Korea’s low-cost aviation sector.