Korean Air will rename all LCCs to Jin Air after the merger

Korean Air (KE, Seoul Incheon) has confirmed that the three low-cost airlines it will fully or partially own following its proposed merger with Asiana Airlines (OZ, Seoul Incheon) will all operate as Jin Air (LJ, Jeju).

“Jin Air will be united under a single Jin Air brand along with Asianas Air Busan and Air Seoul,” a Korean Air spokesman told Reuters.

In March, ch-aviation reported that Korean would consolidate its numerous budget airlines into one following the merger, a move the company has been considering for years. According to a local newspaper, the result will be a “mega-LCC.”

First proposed in late 2020, Korean Air expects to complete its 1.8 trillion KRW ($1.28 billion) acquisition of a 63.9 percent stake in Asiana later this month. After receiving final approval from the European Commission last week, the airlines are now awaiting approval from U.S. antitrust regulators, which is expected shortly. It is understood that Koreans have already received a verbal notification from the US Department of Justice that it will not object to the agreement.

The merger will result in a major realignment of the South Korean aviation market, with the Asiana, Air Busan and Air Seoul brands disappearing. The enlarged Korean Air becomes the world’s 10th largest scheduled passenger operator and Jin Air becomes South Korea’s largest low-cost airline.

Measured by weekly seat capacity, ch-aviation’s capacity module shows that t’way Air (TW, Daegu) is South Korea’s largest low-cost airline with a market share of 10.98%, followed by Jin Air with 10.32%. However, if Air Busan’s 7.49% and Air Seoul’s 1.75% are added, the enlarged Jin Air would have a market share of 19.56%, assuming no further changes are made. This significantly dwarfs T’way Air and the two other major local low-cost carriers Jeju Air (10.07%) and Eastar Jet (4.62%).