How a South Korean low-cost airline navigated a turbulent decade of ownership and expansion

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

In short: Established in 2007, Eastar Jet has survived a failed acquisition, significant restructuring, and a complete ownership change. Today, the South Korean carrier is aggressively modernizing its fleet, moving from a reliance on used aircraft to a future defined by new Boeing 737 MAX 8s and planned Dreamliner additions.

Eastar Jet began its journey in October 2007, launching its first commercial flight from Seoul to Jeju in early 2009. The airline grew rapidly, hitting one million passengers within just two years of operations. By 2016, it had solidified its regional presence by joining the U-FLY Alliance as its fifth member. However, the airline faced immense pressure during the global pandemic. In March 2020, Jeju Air attempted to acquire a majority stake in the company, but the deal collapsed by July of that same year due to the economic instability brought on by COVID-19.

The subsequent period forced the airline into a drastic restructuring phase. To survive, Eastar Jet reduced its fleet from 16 aircraft down to four and cut its workforce from 1,200 to 400 employees. Following an auction in 2021, the company was acquired by property developer Sung Jung for over US$97 million. This ownership was short-lived, as the entire stake was sold to the private equity firm VIG Partners in January 2023. This transition provided the necessary capital for the airline to resume operations and begin a new chapter of growth.

Under the backing of VIG Partners, the airline has embarked on a significant fleet modernization program. After restarting with only three aircraft in 2023, the fleet grew to 15 by 2024. The company is now shifting its strategy toward purchasing new aircraft rather than used ones, specifically targeting the Boeing 737 MAX 8. With 12 of these new jets on order, the airline expects to reach a fleet size of 27 aircraft by 2026. Looking further ahead, the company has announced plans to incorporate Boeing 787 Dreamliners into its operations by 2027, signaling a clear intent to scale its capabilities and reach.

Recent performance data suggests a robust recovery for the carrier. Between January and October 2024, Eastar Jet served 2.2 million domestic passengers and 1.48 million international passengers. This performance represents a recovery to approximately 72% of its 2019 passenger volume, demonstrating the airline's resilience in the post-pandemic aviation landscape.

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