Jin Air (272450), set to become South Korea's largest low-cost carrier when its merger takes effect in March, plans to sharply expand international service from Busan. The carrier will also add staff and infrastructure in the city as part of a plan to develop Busan into its second hub.
Korean Air (003490), Jin Air's parent, laid out the plans in a draft proposal titled "Plan for Building a Second Hub for the Merged Low-Cost Carrier in Busan," according to the office of Rep. Kim Mi-ae of the People Power Party, a member of the National Assembly's Land, Infrastructure and Transport Committee, on the 18th. Korean Air expects to complete its merger with Asiana Airlines (020560) in December and to launch the merged Jin Air on March 17, after Jin Air absorbs Air Busan (298690) and Air Seoul.
Under the plan, the merged Jin Air will expand international service at Gimhae International Airport to 33 routes and 339 weekly flights, up from 28 routes and 281 weekly flights before the merger. The new routes include four to Japan and one to Southeast Asia. Japan accounts for the largest share of added flights at 39 per week, followed by 17 to Greater China and other destinations and two to Southeast Asia.
Alongside the route expansion, the carrier will increase its workforce, aircraft and infrastructure in the Busan area. It plans to add Busan-based specialists including flight and cabin crew and maintenance technicians, and to step up hiring of local talent.
Existing employees at Air Busan and other affiliates will have their employment transferred to provide a stable working environment, the company said. It added that it would rule out forced restructuring and avoid unilateral relocations against employees' wishes. Air Busan currently has 997 employees based in Busan and Jin Air has 187. Twenty-one aircraft are stationed at Gimhae airport, including 16 from Air Busan and five from Jin Air, and the carrier plans to increase that number after the merger and deploy the planes on routes from Busan.
Politicians and civic groups in Busan have argued that the merged Jin Air should be headquartered in the city, saying the region will lose its home-based carrier when Air Busan disappears. Korean Air said it would "gather opinions from related agencies including the Busan Metropolitan Government, the Ministry of Land, Infrastructure and Transport and the Korea Development Bank through the end of November."
Opposition lawmakers have requested that Korean Air Chairman Walter Cho and Korea Development Bank Chairman Park Sang-jin appear as witnesses at the National Assembly Steering Committee's parliamentary audit of government agencies later this month.