Low-cost carriers in Korea are preparing to go public, hoping to raise funds that will allow them to expand their route offerings as the short-haul market reaches a saturation point here.

Jin Air, the budget airline affiliated with Korea‘s flagship carrier Korean Air, said Tuesday it had filed a registration statement with the Financial Services Commission and was on track to debut on Korea’s main bourse in early December.

The airline said the initial public offering would raise up to 381.6 billion won ($341.9 million), listing 9 million existing shares and 3 million new shares priced between 26,800 won and 31,800 won. Jin Air plans to break 1 trillion won in revenue in 2018, and expand its route network to more than 50 routes including mid-range routes and routes taking off from regional airports. 

If the listing goes as planned, Jin Air will become the second budget carrier to go public, following Jeju Air, affiliated with Aekyung Group, which went public in 2015.

Budget airline T‘way Air is also hoping to go public next year. Through the IPO, T’way plans to begin buying midsized and large aircraft starting in 2020 and begin flights to Europe and North America by 2025.

Air Busan, an affiliate of the full-service carrier Asiana Airlines, is also rumored to be preparing an IPO. The airline had previously pursued listing in 2014 and 2015, but had faced opposition from local stakeholders including the Busan city government. 

Air Busan has been buying its own shares, raising Asiana‘s voting power to about 49 percent, beyond its 46 percent of shares, spurring speculation it is preparing to propose public listing once again.

Funds raised through public offerings allow budget carriers, which face fierce competition here, to pursue growth by adding mid-range routes beyond popular destinations in Southeast Asia, Japan and China. Korea currently has six budget carriers, with two more awaiting operating permits from the Ministry of Land, Infrastructure and Transportation. 

By Won Ho-jung (hjwon@heraldcorp.com)