Daemyung Sono sells stake in Air Premia, will refocus on T’way

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Daemyung Sono sells stake in Air Premia, will refocus on T’way

Published: 02 May. 2025, 13:52 Updated: 04 May. 2025, 17:14

Audio report: written by reporters, read by AI

T'way Air's A330-300 aircraft, which flies the Incheon-Singapore route [T'WAY AIR]

Daemyung Sono Group will sell its entire 22 percent stake in budget airline Air Premia for 199 billion won ($139 million) as it refocuses on managing T’way Air, which it recently acquired.

Daemyung Sono Group said Friday that Sono International, which held the Air Premia shares jointly with private equity firm JC Partners, had signed a sales agreement with tire distributor Tire Bank. While Sono International and JC Partners previously held call and put options, respectively, both parties agreed to suspend execution of those rights and proceed with the sale.

Focusing on T’way Air’s long-haul capabilities

Industry watchers had expected Daemyung Sono Group to acquire Air Premia alongside T’way Air to strengthen its mid- to long-haul low-cost flight operations. However, the company reportedly decided to scrap the plan after concluding that T’way Air was capable of operating long-haul routes independently.

T’way Air is preparing to launch a new route to Vancouver, Canada, in July, following the addition of European routes transferred from Korean Air and Asiana Airlines. The carrier currently operates the largest number of long-haul routes among domestic low-cost carriers (LCCs) and also owns the most aircraft suitable for long-distance service.

As of May, T’way Air operates 11 long-haul aircraft: four A330-300s, six A330-200s and one B777-300ER. Four more long-haul aircraft are expected to be added within the year.

T'way Air's A330-300, which will fly long-haul routes [T'WAY AIR]

Name change and board reshuffle planned

Daemyung Sono Group also plans to change T’way Air’s corporate name as part of its full-scale management involvement. The group has filed trademark applications with the Korean Intellectual Property Office for names such as “Sono Air,” “Sono Airline” and “Sono Airways.”

An extraordinary general meeting of shareholders is scheduled for May 23 to finalize these changes. Daemyung Sono Group will again propose the appointment of new board members.

Daemyung Sono recommended nine candidates for the new board of directors, including the group’s chairman, Seo Joon-hyuk, the Chosun Ilbo reported in January. However, the move was blocked due to the Fair Trade Commission’s pending approval of the merger with T’way Air.

The FTC has asked Daemyung Sono Group to submit additional documentation for its merger review. The process must be completed within 90 days of the filing.

“This strategic sale of Air Premia shares will allow us to build a more stable and structured management system centered on T’way Air,” Sono International said in a statement. “We aim to achieve sustainable and solid growth amid the fast-changing aviation industry.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY PARK YOUNG-WOO [[email protected]]