Korean Air announced that after its merger with Asiana Airlines, all low-cost carriers in its portfolio will operate under a single brand: Jin Air. “Jin Air, together with Asiana’s Air Busan and Air Seoul, will be unified under a single Jin Air brand,” a Korean Air spokesperson told Reuters.
The decision to consolidate Air Busan, Air Seoul, and Jin Air under one name reflects a strategic move to streamline operations among Korean Air low-cost carriers and enhance competitiveness in South Korea’s low-cost carrier market. Discussions about this consolidation date back several years, with Korean Air initially considering the idea in March 2024. Local reports have described this move as forming a “mega LCC.”
Korean Air’s acquisition of Asiana Airlines, valued at KRW1.8 trillion (USD1.28 billion), is expected to finalize by late November 2024. This transaction involves purchasing a 63.9% stake in Asiana Airlines. The European Commission granted its approval for the merger earlier this month, and Korean Air confirmed that the United States Department of Justice has indicated no opposition to the deal.
This merger has been in progress since it was first proposed in late 2020. Korean Air now anticipates completing all necessary formalities to finalize the acquisition within the coming weeks.
Market Implications in South Korea
The merger will reshape South Korea’s airline market by eliminating the Asiana, Air Busan, and Air Seoul brands. As a result, Jin Air will emerge as the largest low-cost carrier in the country, commanding a 19.56% market share based on weekly seat capacity. This figure combines Jin Air’s current market share of 10.32% with Air Busan’s 7.49% and Air Seoul’s 1.75%.
Currently, t’way Air holds the largest share among South Korea’s low-cost carriers with 10.98%, followed by Jin Air. Once the merger is complete, Jin Air’s expanded operations will position it well ahead of t’way Air and other competitors like Jeju Air (10.07%) and Eastar Jet (4.62%). This consolidation will likely influence all Korean Air low-cost carriers.
The expanded Korean Air will also become the tenth-largest passenger airline in the world, further bolstering its presence in international markets. Jin Air’s strengthened position will enhance its ability to compete regionally and globally. Korean Air low-cost carriers will benefit significantly from this stronger market position.
Korean Air’s merger with Asiana Airlines marks a transformative moment for South Korea’s airline sector. The unification of its low-cost carriers under the Jin Air brand streamlines operations and positions the airline for both domestic and international growth. Therefore, the strategy concerning Korean Air low-cost carriers is quite significant for future expansion.
