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…
The low-cost carrier landscape in South Korea is set for significant change, as private equity firm VIG Partners prepares to acquire Air Premia. The goal is to combine the long-haul-focused carrier with Eastar Jet, which has a stronger foothold on short-haul routes. Discussions are reportedly underway with AP Holdings and Tire Bank, aiming to acquire approximately 70% of Air Premia, with a deal value estimated at around 300 billion won ($217 million).
This transaction represents VIG's second major move in South Korea's LCC industry, following its acquisition of Eastar Jet in 2023. Air Premia's expertise lies in long-haul services, particularly to the United States, while Eastar Jet focuses on short- and medium-haul routes. By merging these two airlines, VIG seeks to leverage their distinctive route strategies to achieve scale across a broader network, rather than simply increasing its airline portfolio.
In 2023, Eastar Jet and Air Premia generated combined annual sales of approximately 1.21 trillion won.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Korea's aviation industry undergoes major M&A shakeup koreatimes.co.kr
