Jin Air, Air Busan, and Air Seoul announced on the 21st that they had each convened a board meeting, approved a merger among the three companies, and signed a merger agreement.

The three airlines plan to hold extraordinary general meetings of shareholders in December to approve the merger plan and, after undergoing licensing procedures with the relevant authorities, including merger approval under the Aviation Business Act, launch “Integrated Jin Air” on March 17, 2027.

The merger will proceed in the form of Jin Air absorbing Air Busan and Air Seoul. Following the merger, Jin Air will succeed to the assets, liabilities, rights and obligations, employment, and legal status of Air Busan and Air Seoul.

The merger ratios are 0.2862684 Air Busan share per 1 Jin Air share and 0.7501939 Air Seoul share per 1 Jin Air share. Listed companies Jin Air and Air Busan calculated the merger prices based on the standard market prices in accordance with the Capital Markets Act and related regulations. For unlisted Air Seoul, an intrinsic value assessment method reflecting asset value and earnings value was applied.

Jin Air stated that, in order to ensure the fairness of the merger process, it had an external accounting firm review the adequacy of the merger prices and the valuation methodology.

The integration of Air Operator Certificates (AOC), a core task for the launch of the integrated airline, will also move into full swing. Based on Jin Air’s existing AOC and operating standards, the fleets and flight/maintenance infrastructure of Air Busan and Air Seoul will be gradually unified.

The goal is to pass the Ministry of Land, Infrastructure and Transport’s “inspection for changes in the safety operation system” before the launch of Integrated Jin Air. After domestic procedures are completed, subsequent steps such as approvals and notifications with foreign aviation authorities will be carried out.

The three airlines have already been preparing for integration in areas including safety, operations, maintenance, service, and organizational culture. Jin Air invested approximately KRW 22 billion to introduce an A320neo-series flight simulator, and has operated joint pilot training programs, joint training for new maintenance engineers, and combined training for cabin crew instructors.

In the customer service segment, Jin Air and Air Busan implemented codeshare services and promoted measures such as extending the purchase and refund periods for ancillary services and expanding pre-order in-flight meal menus. The three airlines also conducted joint training and developed training materials for responding to passengers with reduced mobility.

After integration, the three airlines plan to reorganize the routes and flight schedules they have each been operating in line with market demand and operate a unified fleet. Reservation and ticketing systems and mobile platforms will also be consolidated so that processes from flight search and booking to airport check-in and boarding are unified.

In particular, the airlines plan to link routes departing from Incheon and Busan, reorganizing the route network around the Seoul metropolitan area and the Yeongnam region, and expanding international flights departing from regional airports. By jointly operating the routes and fleets held by the three airlines, they aim to enhance operational efficiency and develop new routes and demand.

A Jin Air representative said, “By bringing together the expertise accumulated by each airline, a new growth foundation for the LCC industry will be established,” adding, “The integration will be completed with safety as the top priority, and the company will grow into a leading LCC in Asia by improving route operation efficiency and expanding consumer choice.”

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