SEOUL : South Korea’s largest airline Korean Air will create one large low-cost carrier under its existing Jin Air brand after its merger with smaller rival Asiana Airlines.
Combining Korean Air’s Jin Air with Asiana’s Air Busan and Air Seoul could create a low-cost carrier bigger than Korea’s current largest budget airlines Jeju Air and T’Way.
Korean Air expects to complete its 1.8 trillion won ($1.3 billion) purchase of just over two-thirds of South Korea’s debt-laden Asiana by the end of the year, having announced the deal in 2020.
The merger will result in an enlarged Korean Air, a full service carrier, and an enlarged low-cost subsidiary, Jin Air.
The Asiana acquisition received final regulatory approval from the European Union’s competition regulator on Thursday, and is expecting the last remaining regulatory nod from U.S. authorities imminently in time to complete the deal by Dec. 20.
“Jin Air, together with Asiana’s Air Busan and Air Seoul, will be unified under a single Jin Air brand,” a Korean Air spokesperson said.
Together Jin Air, Air Busan and Air Seoul have around 58 aircraft and in November operated 8 per cent of Korea’s domestic and international capacity, according to Cirium schedule data.
Jeju Air and T’Way operated just over 6 per cent each, and have 42 and 39 planes respectively, according to Flightradar24 data.
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