ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
Business deals

Virus outbreak cuts price of South Korean budget airline deal

Jeju Air buys rival Eastar at $45m as industry beset by travel slump

Jeju Air, South Korea's top budget airline, has not been immune from the country's travel slump. (Photo courtesy of the company)

SEOUL -- Jeju Air, South Korea's biggest budget airline, has agreed to take over fifth-ranked carrier Eastar Jet for 54.5 billion won ($45.7 million), a price partly undercut by the ongoing coronavirus outbreak.

Jeju will buy a 51.17% stake in Eastar from the latter's parent company in April. The purchase price was negotiated down by about a fifth compared with a preliminary agreement struck last year.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more