Transport Ministry: “Whether Jin Air moves to Busan is for the company to decide”

[Financial News] The Ministry of Land, Infrastructure and Transport said that whether the headquarters of the merged Jin Air should be moved to Busan is a matter for the company to decide. Political circles have called for the merged Jin Air’s headquarters to be relocated, arguing that the merger of Jin Air, Air Seoul and Air Busan would mean the disappearance of Busan’s hub carrier.
On the 2nd, the ministry responded to a written inquiry from Rep. Kim Mi-ae of the People Power Party, a member of the National Assembly’s Land, Infrastructure and Transport Committee, about moving the merged Jin Air to Busan, saying, “If Jin Air decides to move its headquarters in the future, we will promptly pursue the necessary procedures, including amending its license.”
Korean Air had previously proposed establishing a second hub for the merged low-cost carrier (LCC) in response to Rep. Kim’s inquiry about ways to maintain a Busan-based carrier. The plan is to maintain the fleet, personnel and infrastructure deployed in Busan at their current levels and expand them in the future. The ministry praised the proposal, saying, “We plan to monitor and oversee the situation to ensure they are maintained as planned.”
The ministry said, however, that specific details of the second-hub plan had not yet been submitted. The merged Jin Air is targeting a March 17 launch and is proceeding with the ministry’s merger-approval process and the Korea Fair Trade Commission’s business-combination review.
Rep. Kim said, “Since this is a merger involving public funds, the ministry should secure a detailed plan for the second hub, an implementation schedule and review criteria before approving the merger, and check whether the commitments are being honored. Of the 1,184 employees of the merged LCC working in Busan, 84% are Air Busan employees, and 16 of the 21 aircraft based in Busan belong to Air Busan. There is no justification for locating the headquarters in the Seoul metropolitan area.”

[email protected] Kim Yun-ho Reporter