Integrated LCC headquarters location to be decided by end of November; Gimhae international routes to expand

Korean Air said it will gather opinions from Busan city, the Ministry of Land, Infrastructure and Transport and Korea Development Bank through the end of November on where to base the headquarters of a new integrated low-cost carrier formed by merging Jin Air, Air Busan and Air Seoul. Korea Development Bank also indicated it would support locating the headquarters in Busan if a consensus is reached.

According to a document titled "Plan for Building the Integrated LCC's Second Hub in Busan," submitted by Korean Air to People Power Party lawmaker Kim Mi-ae (Haeundae-gu, Busan) and made public Sunday, the integrated carrier plans to expand international routes at Gimhae Airport from 28 to 33 — an increase of five — when it launches next year, while boosting weekly flights from 281 to 339, an increase of 58. By region, four new routes will be added to Japan and one to Southeast Asia. Weekly flight increases break down to 39 for Japan, 17 for Greater China and other destinations, and two for Southeast Asia. Domestic routes from Gimhae will remain largely unchanged, rising by just one to 189 weekly flights.

Korean Air said it will retain the employees of all three carriers and rule out forced restructuring. It also pledged to avoid transferring workers to new locations against their will. The airline said it plans to expand operations for Busan-based pilots, cabin crew and maintenance staff and increase local hiring, though it did not specify the scale of any increase. Current Busan-based staff total 1,184 — 187 from Jin Air and 997 from Air Busan.

Under the proposed structure, Seoul would handle overall policy planning while Busan would take on headquarters functions in specific business areas. Busan's role would include serving as a regional representative, leading marketing and sales tailored to the Yeongnam region, and managing Busan hub operations. Air Busan's flight operations control center and cabin crew training center would continue to operate, and Gimhae Airport would be developed into a maintenance hub capable of in-house servicing.

On the closely watched question of where to base the headquarters, Korean Air said it plans to "gather opinions from relevant agencies including Busan city, the Ministry of Land, Infrastructure and Transport and Korea Development Bank through the end of November, and actively communicate with employees of all three carriers." The airline noted that neither the headquarters location nor a final decision date has been confirmed.

Korea Development Bank, which holds a 10.58 percent stake in Hanjin KAL, Korean Air's holding company, has maintained that the headquarters location is a matter for Korean Air to decide independently. However, documents submitted to Kim's office revealed that the bank said it would "support the decision if Busan is agreed upon, and actively work to revitalize regional airports and develop a second hub airport."

Kim said the outcome must go beyond simply assigning some headquarters functions to Busan. "I will follow through to ensure that the stakeholder consultation process leads to a genuine discussion about establishing a full headquarters in Busan and securing real decision-making authority there," she said.