"Position Change" but CEO Removed and Approval Excluded... What Is Happening at Air Premia?

Moon Bo-guk Steps Down as Co-CEO, Moves to Advisor Role
Leaves Approval Line Immediately After Resignation
Startup-Style Management Sparks Conflict Rumors with Other Executives

Former CEO of Moon Bo-guk Air Premia and CEO of travel and leisure startup LeisureQ (Source=Asia Economy DB)

The sudden resignation of Moon Bo-guk, co-CEO of the hybrid airline (HSC) Air Premia, has sparked growing interest surrounding the reasons behind it. Air Premia had attracted attention by aggressively expanding its business, including launching routes to the Americas, and Moon’s departure during this growth phase is being interpreted as a sign that underlying conflicts have surfaced.

According to industry sources on the 13th, Air Premia decided on Moon’s resignation on the 8th and announced internally the next day that he would be excluded from all approval lines. In a press release last week, Air Premia stated, "Moon is stepping down and moving to an advisory role," adding, "This decision was made while reestablishing key tasks according to the business plan," but in reality, it was not a voluntary resignation.

Judging by performance alone, there seems to be little reason for Moon to be pushed out. Since his appointment in July last year, the company’s outlook has clearly improved. According to the company, last year’s sales reached 375.1 billion KRW, a 605% increase compared to the previous year, and operating profit was 18.6 billion KRW, marking the first profit since the company’s founding in 2017. While the end of the COVID-19 situation played a major role in the strong performance, Moon’s contribution to normalization is also highly regarded.

Within the aviation industry, the strong measure of excluding him from the approval line is seen as the result of accumulated disagreements among the management. Unlike owner Kim Jung-gyu, chairman of Tire Bank, and co-CEO Yoo Myung-seop, a former Korean Air executive, Moon came from a startup background. It is reported that there were differences in perspectives on airline management between Moon and Chairman Kim. Moon pushed for fast decision-making centered on IT and platforms, which sometimes clashed with the conservative corporate culture favored by others.

Moon, born in 1984, was a rare 40-something executive in the aviation industry. A native of Jeju and a graduate of Seoul National University’s Department of Physical Education, he founded the travel and leisure startup ‘LeisureQ’ in 2013. He reportedly held a 1% stake in Air Premia from its early days, using the proceeds from selling LeisureQ to Yanolja in 2018. When private equity firm JC Partners acquired management rights of Air Premia in 2021, Moon participated as a major limited partner (LP). In 2023, he became a major shareholder by directly investing in Air Premia through AP Holdings, which he established together with Chairman Kim. AP Holdings, the second-largest shareholder at the time, recently purchased JC Partners’ shares to become the largest shareholder.

Although his tenure as CEO lasted about a year, Moon was highly trusted by younger employees. He did not have a separate office and communicated openly with staff. He reportedly came to work carrying a backpack with his laptop and worked from any available seat. He preferred minimizing unnecessary reporting structures and making decisions quickly. He especially emphasized IT and data-driven management. He recruited developers, increased investment in software, and actively used collaboration tools like Slack and Notion. Sales were also refined based on data to strengthen profitability. This brought a new atmosphere not seen in traditional airlines. A company official said, "Moon was the first in the aviation industry to unify job titles as ‘manager,’ creating an environment where opinions could be freely expressed and business could be pushed forward," adding, "He energized the company by delivering results through data utilization."

There were rumors that Chairman Kim dismissed Moon on grounds of ‘insubordination’ after Moon showed signs of securing shares in cooperation with JC Partners. However, the prevailing view is that this is unlikely. AP Holdings, the largest shareholder, holds more shares than Chairman Kim, and Kim’s own stake in Air Premia is 9%, securing his control.

Air Premia, having completed the first phase of key tasks initiated last year, expects to surpass 500 billion KRW in sales this year. It plans to expand its fleet and routes by introducing four aircraft by next year. However, internal turmoil is expected to continue amid the management transition. An aviation industry insider said, "There were some discordances in management styles, such as aircraft introduction and fast decision-making typical of the IT industry," adding, "With the CEO change, a restless atmosphere is likely to persist for a while."