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 around 300 billion won ($217 million). The potential deal would mark VIG’s second major move in Korea’s LCC industry since it acquired Eastar Jet in 2023. The latest move would give the private equity firm access to two airlines with distinctly different route strategies: Eastar has focused largely on short- and medium-haul routes, while Air Premia has built its business around long-haul services, including flights particularly to the United States. The combination could therefore offer a way to build scale across a broader network, rather than simply adding another airline to VIG’s portfolio. Eastar Jet and Air Premia generated combined sales of about 1.21 trillion won last year, accordi