Jin Air, Air Busan, and Air Seoul have approved their merger during board meetings. The three low-cost carriers (LCCs) will officially launch as 'Integrated Jin Air' on March 17, 2027.
On August 21, Jin Air, Air Busan, and Air Seoul held separate board meetings to approve the merger and sign the merger agreement.
The companies plan to hold extraordinary general meetings in December to approve the merger proposal, followed by necessary regulatory approvals under aviation business laws, preparing for the launch of the integrated airline on March 17, 2027.
Through this merger, the three airlines aim to efficiently combine their routes, fleets, and human and material resources to achieve economies of scale. Their strategy includes enhancing network and service quality, increasing competitiveness at key hubs, and actively developing new demand.
According to the merger agreement, Jin Air will inherit the assets, liabilities, rights, obligations, employment, and legal status of Air Busan and Air Seoul.
The merger ratio was determined based on relevant laws and evaluation criteria applicable to each company, calculated as Jin Air 1 : Air Busan 0.2862684 : Air Seoul 0.7501939.
Publicly traded Jin Air and Air Busan based their merger valuation on market prices in accordance with capital market regulations, while privately held Air Seoul applied a valuation method reflecting asset and revenue values as per relevant laws.
To protect shareholder interests, Jin Air has engaged an independent external accounting firm to review the fairness of the merger valuation and methodology, ensuring the integrity of the merger process.
Jin Air will focus on securing an 'Integrated Operating Certificate (AOC)' and establishing safety systems as key tasks for the launch of the integrated airline. The integration process will gradually unify Air Busan and Air Seoul's fleets, operations, and maintenance infrastructure based on Jin Air's existing operating certificate and operational standards (OpSpecs).
The company aims to pass the Ministry of Land, Infrastructure and Transport's 'Safety Operation System Change Inspection' before the scheduled launch of Integrated Jin Air, thoroughly preparing for related procedures. They plan to diligently complete domestic safety assessments and promptly pursue subsequent approvals and notifications from international aviation authorities to maintain a top-level safety operation system post-merger.
In preparation for the successful launch of Integrated Jin Air, Jin Air has been increasing investments across all areas, including safety, operations, maintenance, service, and organizational culture.
In the safety operation sector, approximately 22 billion won has been invested to introduce an A320neo series flight simulator (FFS), establishing training infrastructure necessary for future operations of Airbus aircraft.
They have developed and implemented a joint training program for pilots in preparation for the merger, as well as joint training for new maintenance personnel and cabin crew instructors from the three airlines, laying the groundwork for standardizing education systems and manuals in safety, maintenance, and cabin service.
In customer service, they have expanded cooperation, implementing codeshare agreements between Jin Air and Air Busan, enhancing customer convenience through extended deadlines for purchasing and refunding ancillary services, and diversifying pre-ordered in-flight meal options. Additionally, they have issued an 'Integration Newsletter' to share merger-related information among employees of the three companies.
Integrated Jin Air plans to efficiently combine the operational capabilities and resources of the three airlines to enhance customer benefits and operational foundations. They will reorganize and expand the routes and schedules previously operated by each airline to align with market demand and flexibly operate the expanded fleet to strengthen connectivity between routes.
Furthermore, they plan to unify the reservation and ticketing systems and mobile platforms of the three airlines to improve convenience in searching for flights, making reservations, airport check-ins, and boarding, while gradually standardizing customer response systems and service manuals.
By operating routes from Incheon and Busan in conjunction, they aim to strengthen the two major networks in the domestic aviation market: the metropolitan area and the Yeongnam region. They will efficiently utilize existing routes and operational resources while actively developing new routes and demand to establish an integrated route system covering both the metropolitan area and regional areas.
Jin Air stated, "This merger of the three airlines is a significant turning point in consolidating the expertise accumulated by each airline to establish a new growth foundation for the LCC industry in South Korea. We will prioritize safety as our core value, successfully complete the integration, and grow into a leading LCC in Asia by optimizing route operations and expanding consumer choices."
* This article has been translated by AI.
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