Jeju Air, a South Korean budget airline, agreed to acquire a 51% stake in Eastar Jet, a low-cost airline with its headquarters in Banghwa-dong, Gangseo-gu, Seoul, for $59m. The deal shows consolidation is underway in South Korea’s crowded budget carrier space as travel demand is falling to the key Japan market due to a diplomatic row between the two neighboring countries, hitting profitability of airlines.