Three South Korean Low-Cost Airlines Ink Merger Agreement

Jin Air, Air Busan, and Air Seoul, low-cost carrier subsidiaries belonging to the Hanjin Group, have officially signed a definitive agreement to merge into a single airline operating under the Jin Air brand name beginning on March 17, 2027. This major corporate restructuring follows the broader consolidation process initiated after Korean Air's acquisition of Asiana Airlines.

Under the terms of the merger agreement, Jin Air will absorb all assets, liabilities, legal rights, obligations, workforce, and corporate status of both Air Busan and Air Seoul. The share exchange ratio established for the transaction has been set at 1 share of Jin Air for every 0.75 shares of Air Seoul and 0.29 shares of Air Busan.

For the transaction to officially take effect, the merger proposal must secure approval from shareholder meetings scheduled for December, followed by final regulatory clearances from national authorities. Additionally, the Hanjin Group will be required to secure an updated Air Operator Certificate, undergoing rigorous safety inspections mandated by the South Korean Ministry of Land, Infrastructure and Transport.

Once the integration process is fully completed, the unified airline will manage a combined fleet of 58 aircraft, providing passengers with an expanded route network and a consolidated frequent flyer program. This strategic realignment represents a logical operational evolution within the parent group following the primary merger of Korean Air and Asiana, establishing a powerful new benchmark in the regional low-cost aviation sector across Asia.

Industry analysts note that this consolidation will significantly enhance operational efficiencies and streamline cost management amid fluctuating global fuel prices. As the integration timeline moves forward, management teams will focus on aligning maintenance protocols and customer service standards ahead of the official 2027 launch date.