Korean Air to Consolidate Low-Cost Carriers Under Jin Air Brand
Korean Air has confirmed its plan to unify its low-cost carrier operations under the Jin Air brand following its merger with Asiana Airlines. The decision will see Jin Air, together with Asiana’s subsidiaries Air Busan and Air Seoul, operate as a single entity, significantly reshaping South Korea’s aviation landscape.
A Korean Air spokesperson told Reuters that the consolidation of its low-cost carriers is a strategic move to streamline operations after the planned acquisition of a 63.9% stake in Asiana Airlines, valued at KRW 1.8 trillion (USD 1.28 billion). This merger, which has been under consideration for several years, aims to create a “mega LCC” (Low-Cost Carrier), according to local reports. Korean Air is expected to finalize the acquisition by the end of this month after receiving approval from the European Commission. Approval from U.S. antitrust authorities is also anticipated soon, with verbal confirmation already given by the U.S. Department of Justice that it will not oppose the deal.
As a result of the merger, the Air Busan and Air Seoul brands will be dissolved, and all three carriers will operate under the Jin Air name. This will make Jin Air the dominant low-cost carrier in South Korea, surpassing its competitors both in terms of market share and capacity.
Currently, t’way Air is South Korea’s largest low-cost carrier, holding a 10.98% market share, followed by Jin Air with 10.32%. However, with the addition of Air Busan’s 7.49% and Air Seoul’s 1.75% market share, the newly consolidated Jin Air will command a dominant 19.56% market share in the South Korean market. This will far surpass the market share of t’way Air (10.98%), Jeju Air (10.07%), and Eastar Jet (4.62%), according to the ch-aviation capacities module.
The merger will not only make the newly formed Jin Air the largest low-cost carrier in South Korea but will also place the expanded Korean Air as the tenth-largest scheduled passenger operator in the world. By consolidating its low-cost operations, Korean Air is poised to strengthen its position in both the domestic and international markets, benefiting from improved operational efficiencies and increased capacity. The move will also allow Korean Air to better compete with other regional carriers, especially as the Asian aviation market continues to recover from the impacts of the pandemic.
With final regulatory approvals pending, Korean Air’s merger with Asiana Airlines is set to reshape the competitive landscape of South Korea’s aviation industry, particularly in the low-cost segment, where Jin Air is expected to dominate.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com