Korean Air's budget Jin Air brand to absorb Asiana low-cost carriers after merger

Jin Air Co

29/11/2024 09:18

By Lisa Barrington
       SEOUL, Nov 29 (Reuters) - South Korea's largest airline
Korean Air  003490.KS  will create one large low-cost carrier
under its existing Jin Air brand  after its merger with smaller
rival Asiana Airlines  020560.KS .
    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% of Korea's domestic and
international capacity, according to Cirium schedule data.
    Jeju Air and T'Way operated just over 6% each, and have 42
and 39 planes respectively, according to Flightradar24 data.

 (Reporting by Lisa Barrington; Editing by Jan Harvey)
 ((lisa.barrington@thomsonreuters.com;))