Korea's aviation industry undergoes major M&A shakeup
Korea’s low-cost carrier (LCC) industry is heading for a major shakeup, as VIG Partners moves to acquire Air Premia, seeking synergies by combining the long-haul-focused carrier with its existing Eastar Jet, which has a stronger presence on short-haul routes. VIG is reportedly in negotiations with AP Holdings and Tire Bank to acquire about 70 percent of Air Premia, with the transaction valued at…
Korea's low-cost carrier (LCC) sector is set for a major transformation as private equity firm VIG Partners aims to acquire Air Premia. The acquisition, valued at approximately 300 billion won ($217 million), would involve VIG purchasing around 70 percent of Air Premia, with negotiations currently underway with AP Holdings and Tire Bank. The deal would be VIG's second significant M&A in the LCC industry, following its acquisition of Eastar Jet in 2023.
Air Premia specializes in long-haul services, including flights to the United States, while Eastar Jet has established a strong presence on short- and medium-haul routes. The combination of these two airlines could provide VIG with a broader network and scale, rather than simply increasing its portfolio size. Together, Eastar Jet and Air Premia generated combined sales of about 1.21 trillion won last year.
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- Korea's aviation industry undergoes major M&A shakeup koreatimes.co.kr
