South Korea's Jeju Air buys Eastar Jet at lower price amid virus outbreak

Jeju Air said Monday it would acquire a 51% stake in competitor Eastar Jet for $45.49m, a lower price than previously announced. The acquisition is the latest case of restructuring in South Korea's aviation industry, which is suffering losses from low travel demand due the coronavirus epidemic and a diplomatic feud between South Korea and Japan last year. The final acquisition price is lower than a preliminary deal price of about 69.5b won Jeju Air reported in a December regulatory filing, which was subject to change after due diligence. "The management is well aware that there is concern among our employees about the Eastar Jet acquisition," Jeju Air CEO Lee Seok-joo said in a message to employees on Monday. "However, the domestic airline industry, which has a structural problem of oversupply, will soon have to restructure... If it's unavoidable, we believe it's best to make a preemptive move."<br/>