Busan steps up push to host integrated LCC headquarters

The planned merger of Jin Air, Air Busan and Air Seoul has reignited Busan’s push to host the headquarters of the integrated low-cost carrier (LCC) and build a second aviation hub outside Seoul.

The issue has gained urgency, as Air Busan will soon be absorbed into Jin Air, leaving the southern port city without its own regional carrier.

As Air Busan is set to disappear as a separate legal entity following the upcoming launch of the converged Jin Air in March next year, relocating the headquarters of the surviving Jin Air to Busan is emerging as the city’s last major option.

However, the bid faces challenges, as Jin Air’s articles of association stipulate that its headquarters must be located in Seoul.

Busan civic groups are calling for amendments to relevant laws to allow the integrated LCC to be headquartered in the southeastern city.

With Gadeokdo New Airport under construction in Busan, local communities argue that a regional carrier is essential to ensuring the airport’s successful opening and early operations.

The debate is also gaining political weight, as the government has emphasized balanced regional development. In December, the Ministry of Oceans and Fisheries also relocated its headquarters to Busan in line with the government’s policy.

The Busan Citizens’ Movement for the New Airport and Regional Carrier, an alliance of 22 local organizations, recently said that the headquarters of the integrated LCC should not be treated merely as a matter of corporate efficiency.

“Air Busan is a representative regional company that grew together with Busan and its business community,” the group said.

“If its independent corporate entity disappears through the merger and even its headquarters functions could move to the capital region, this will worsen the excessive concentration in Seoul and its surrounding areas.”

The group urged the government to make clear its position on creating a second regional aviation hub, as part of the Korean Air-Asiana integration.

Earlier, the Ministry of Land, Infrastructure and Transport promised to establish a second aviation hub at a regional airport while granting an approval for Korean Air’s acquisition of Asiana Airlines and the launch of the converged LCC.

However, the land ministry later changed its position, saying that the issue should be determined by a private company.

Jin Air pledged to create more international routes from Busan, as part of its efforts to support regional economy.

“Under the current legal and administrative merger procedures, the surviving company’s headquarters location will be maintained,” an official from Jin Air said. Jin Air is headquartered in western Seoul.

“Following the integration, we will actively develop new international routes from Busan and expand our hub airport networks in both Incheon and Busan to provide customers with a wider range of air services.”