How a regional South Korean airline grew into a major low-cost aviation player

Countries & Cities · Published 15 October 2026 Swipe more like this →

In short: Founded in 2007, Air Busan transformed from a local startup into South Korea's third-largest budget carrier. By leveraging its strategic base in Busan and expanding international routes, the airline achieved rapid growth before entering a complex integration process that will eventually see it merge into a larger corporate entity.

Established as Busan International Airlines Company on 31 August 2007, the carrier rebranded as Air Busan in February 2008 following an investment agreement between the city of Busan and Asiana Airlines. Operations officially commenced in October 2008, initially connecting Busan with Gimpo. The airline quickly scaled its fleet and reach, taking delivery of its first Airbus A321-200 in January 2011 and eventually operating a mix of Airbus A320, A321, and A321neo aircraft by August 2025.

The airline's growth trajectory was significant, particularly in international markets. By 2018, it carried 3.6 million international passengers and 4.5 million domestic passengers, marking a 122% increase in international traffic over the preceding three years. This expansion relied heavily on its operations at Gimhae International Airport, where it exclusively utilized the expanded international terminal that became operational in March 2024. However, the airline also faced operational challenges, including its first hull loss on 28 January 2025, when Flight 391 caught fire before takeoff, resulting in seven injuries among the 176 people on board.

The future of Air Busan is currently defined by corporate consolidation. Following the approval of Korean Air's post-merger plan for Asiana Airlines by the Korea Development Bank in 2021, a strategy was set to integrate Air Busan and Air Seoul into Jin Air, Korean Air's existing low-cost subsidiary. This process reached a critical milestone in August 2026 with the signing of an official integration agreement. By 17 March 2027, Air Busan is scheduled to be fully integrated into Jin Air, marking the end of its tenure as an independent subsidiary of Asiana Airlines.

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