Gov't approves Jin Air's merger with Air Seoul, Air Busan

The transportation ministry said Thursday it has approved South Korean low-cost carrier (LCC) Jin Air Co.'s planned merger with Air Seoul Co. and Air Busan Co., paving the way for the launch of an integrated LCC in March.

The approval comes as Korean Air Co., Jin Air's parent company and South Korea's largest airline, is preparing to complete its merger with Asiana Airlines Inc. on Dec. 17.

Jin Air is an affiliate of Korean Air, while Air Seoul and Air Busan are subsidiaries of Asiana Airlines.

The three LCCs plan to hold extraordinary shareholder meetings next month to approve the merger before formally launching the integrated carrier in March.

Once completed, the merger will create South Korea's largest LCC with a combined fleet of 58 aircraft.

The Fair Trade Commission also approved the merger, concluding it is presumed not to restrict competition under its merger review guidelines.

As part of the integration, Jin Air has submitted a plan to develop Gimhae International Airport in the southeastern port city of Busan into a second aviation hub, according to the Ministry of Land, Infrastructure and Transport.

Under the plan, the carrier aims to increase the number of international routes from Gimhae Airport to 33 from the current 28 and weekly flights to 339 from 281.