Fly Gangwon Confirms Reintroduction of Second Aircraft... Deployment on 'Yangyang~Daegu' Route

Delivery of Boeing B737-800 on the 5th of Next Month
Affiliate 'Ayum' Shares Sold for 110 Billion KRW
CEO Joo Won-seok Donates Personal Funds Worth 9 Billion KRW

[Asia Economy Reporter Dongwoo Lee] Fly Gangwon is set to expand domestic flights in the second half of the year, starting with the reintroduction of its second aircraft.

According to the aviation industry on the 14th, Fly Gangwon will receive one Boeing B737-800 aircraft through Incheon Airport on the 5th of next month. This marks the reintroduction after eight months since the company returned its second and third aircraft early in December last year due to the impact of COVID-19.

The second B737-800, scheduled for delivery, has a total of 186 seats and is currently undergoing maintenance and final painting in Ostrava, eastern Czech Republic.

Fly Gangwon plans to deploy the second aircraft first on the irregular route between Yangyang and Daegu, which will resume operations from the 13th of next month, and will consider introducing a third aircraft depending on the COVID-19 situation.

The early reintroduction of Fly Gangwon’s second aircraft is interpreted as a response to the steady increase in passengers using its hub airport, Yangyang International Airport, this year. According to the Ministry of Land, Infrastructure and Transport’s Aviation Information Portal System, the number of passengers using Yangyang International Airport reached 16,512 last month, a 436.4% increase compared to 3,078 in January this year.

Speed is also expected in securing operating funds. On the 15th, Joo Won-seok, CEO of Fly Gangwon, is scheduled to finalize the sale of shares in Ayum (formerly Fly Yangyang Development), an affiliate of Fly Gangwon. As of last year, Joo and related parties held 73.16% of Ayum’s shares, with the sale amount estimated at approximately 110 billion KRW. In April, a letter of intent (LOI) was signed with a real estate investment company, and due diligence has been completed.

CEO Joo plans to personally contribute about 9 billion KRW from the sale proceeds to cover fixed operating costs of Fly Gangwon, such as aircraft lease fees, maintenance costs, and labor expenses, at a rate of about 300 million KRW per month.

If the self-rescue plan succeeds, a green light will also be given for securing support funds worth about 6 billion KRW from the Gangwon Provincial Government. Last year, the Gangwon Provincial Council partially amended the ordinance on financial support for air carriers using regional airports in Gangwon Province, deciding to provide funding to Fly Gangwon and reviewing self-rescue measures to grant support funds.

A Fly Gangwon official said, “Through the introduction of the second aircraft, we will enhance convenience for customers using Yangyang International Airport and gradually increase domestic flights.”