Korean Air, Asiana low-cost units to merge under Jin Air brand by 2027

South Korea's three budget carriers, all under Korean Air and Asiana, are set to merge into a single airline by March 2027. The boards of Jin Air, Air Busan and Air Seoul have signed off on the plan, though it still needs approval from shareholders and regulators.

The combined carrier will keep the Jin Air name, following the same approach used in the larger Korean Air-Asiana merger. Jin Air currently sits under Korean Air, while Air Busan and Air Seoul belong to Asiana.

The companies say the merger will bring economies of scale and lower fixed costs by combining networks, fleets and staff. Jin Air has said it wants to build up its position at both Incheon and Busan after the merger, adding routes and frequencies from those hubs.

The merged airline is expected to fly 58 aircraft, though the final fleet mix hasn't been settled yet. Jin Air said older, higher-cost aircraft would likely be retired in favor of standardized short- and medium-haul types. Right now, Jin Air operates Boeing 737-800s, 737-900s, 737 MAX 8s and 777-200ERs. Air Busan flies Airbus A320ceo, A321ceo and A321neo variants, and Air Seoul flies only A321s.

Under the agreement, Jin Air will absorb the assets, liabilities, employees and legal status of Air Busan and Air Seoul, and the group plans to pursue a single, integrated air operator's certificate. This follows the wider merger between Korean Air and Asiana, which is set to see Asiana formally folded into Korean Air's operations in mid-December.