South Korea’s largest low cost carrier Jeju Air is buying a controlling stake in rival Eastar Jet.
It agreed a deal with Eastar Holdings to take over a 51.17% stake in Eastar Jet for US$60 million.
"The acquisition is aimed at realizing economies of scale, gaining a bigger market share and strengthening the company’s competitiveness in global markets," the company said.
It boosts Jeju Air’s market share in Korea behind bigger full service carriers Korean Air and Asiana.
Jeju Air is owned by Aekyung Group and the Jeju Island government.
Aekyung Group had been interested in a stake in Asiana but Hyundai Development-Mirae Asset Daewoo consortium won that bidding war.
Eastar Jet operates 23 planes although two of these are Boeing 737 Max jets which have been grounded for months.
It operates mostly international routes to China, Japan and Southeast Asia.
