The first low-cost airline in Asia dates back to 1988 with the launch of the Philippine carrier Cebu Pacific. Yet the true boom, which saw dozens of carriers spring up within months, began when the Malaysian airline AirAsia rebranded as a low-cost carrier in 2001.
The no-frills model, novel at the time but increasingly ineffective in the 2020s, helped return AirAsia to profitability and inspired newer airlines to launch in countries such as Japan, Thailand, Indonesia, and India.
But with many operating in oversaturated markets and facing competition from mainstream airlines that have caught on to the idea of selling basic economy tickets, multiple low-cost airlines on the Asian continent and elsewhere are struggling to stay afloat.
Jin Air, Air Busan, and Air Seoul will merge into a single South Korean low-cost airline
This week, the boards of three South Korean low-cost carriers approved a proposal to merge Jin Air, Air Busan, and Air Seoul into a single airline operating under the Jin Air name by March 2027, The Korea Herald reported.
This means the latter two carriers launched from different cities in South Korea will cease operations under their current names and brands.
The move comes as their respective parent companies, Korean Air for Jin Air and Asiana Airlines for Air Seoul and Air Busan, are in the process of merging their airlines by the end of 2026 to combine routes and resources, Asiana Airlines shared.
Related: Low-cost airline will launch new flight to South Korea from US
“This merger is an important turning point that consolidates each airline’s expertise to build a new growth foundation for Korea’s low-cost carrier industry,” Jin Air said in a statement, according to The Korea Herald. “We will prioritize safety to complete a successful integration and grow into a leading low-cost carrier in Asia.”
The merger of low-cost airlines is still subject to approval from South Korean regulators and obtaining a new air operator’s certificate (AOC) to fly as a single carrier.
The larger Jin Air will take on all of Air Busan’s and Air Seoul’s assets, liabilities, employees, and legal status in exchange for a merger ratio at which one share of Jin Air is worth 0.29 and 0.75 of the latter two, respectively.
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What happens when Air Busan and Air Seoul become Jin Air?
With the merger making Jin Air the largest low-cost airline in South Korea with a fleet of 58 planes, locals have expressed concerns about an antitrust environment in which prices are established by a single company.
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Once the merger is given the all-clear to proceed, the three airlines will be combined under a single website and mobile app for bookings and reservations. Airport counters and check-in counters currently operated as three single airlines will also disappear under a single unified Jin Air.
Changes to the flight network and any potential layoffs have yet to be revealed, but the plans expressed by Jin Air up until now include a desire to tap further into the network of international flights run by Air Busan from the city on the southeastern coast of South Korea, The Chosun Daily reported.
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