FTC approves combination of Jin Air, Air Seoul, Air Busan

The proposed merger of Jin Air, Air Busan and Air Seoul has cleared its final regulatory hurdle, paving the way for the three low-cost carriers (LCCs) to officially operate as a single carrier under the Jin Air brand beginning March 17, the nation’s antitrust authority said Thursday.

Under the approvals by the Ministry of Land, Infrastructure and Transport and the Fair Trade Commission (FTC), the three carriers will be integrated through Jin Air's absorption of Air Busan and Air Seoul following Korean Air’s acquisition of Asiana Airlines.

The approvals remove the major regulatory obstacles to the restructuring of Hanjin Group's airline business, following the planned launch of the integrated Korean Air as a full-service carrier on Dec. 17.

Jin Air will assume the assets, liabilities, employees and legal status of the two other carriers.

The combined airline will become Korea's largest LCC by fleet size, with about 58 aircraft in operation by the three carriers combined as of the end of 2025. It will combine the three carriers' routes, aircraft and operating infrastructure, with the aim of improving network efficiency and expanding passengers' choices.

The government has also imposed conditions to ensure a smooth transition. Jin Air must complete safety inspections and obtain necessary approvals from overseas aviation authorities before the integrated carrier launches.

“Under the conditions of the merger approval, Jin Air must also report to the Ministry of Land, Infrastructure and Transport on a monthly basis whether it is carrying out the plans it submitted, including measures to protect consumers,” an official from the FTC said.

One of the most politically sensitive issues remains the future role of Busan.

Air Busan has long served as Busan's representative regional carrier, prompting strong demands from the city and local business community to keep the headquarters of the integrated LCC in the southeastern city.

Busan's Gangseo District separately sent a formal proposal this week to Jin Air and parent company Korean Air, arguing that the area offers advantages including proximity to Gimhae International Airport and the planned Gadeokdo New Airport.

For now, however, the integration plan focuses on strengthening Busan as a second hub, rather than relocating the headquarters there.

Under the plan submitted to the government, the integrated Jin Air will increase international services from the Gimhae airport from 28 to 33 routes and from 281 to 339 flights per week. It also plans to expand local hiring, maintain existing Air Busan infrastructure and develop Gimhae as an independent maintenance base.

The expansion has done little to end the debate over the headquarters. Busan’s regional communities argue keeping the corporate center in Busan would help preserve the region's aviation ecosystem and support the future Gadeokdo airport.

"For now, chances appear slim for the converged Jin Air to accept the demand from Busan for its headquarters relocation," an official from the aviation industry said.