Jung Hong-geun, CEO of T'way Air, "Considering Various Options for Management Participation in Daemyung Sono"

"Too Many Low-Cost Carriers...
Market Restructuring Is Positive"

Jung Hong-geun, CEO of T'way Air, said on the 23rd that they are "considering various options" regarding Daemyung Sono Group's full-scale acquisition of T'way Air.

On the morning of the same day, Jung made these remarks to reporters ahead of the 'Low-Cost Carrier (LCC) Aviation Safety Special Inspection Meeting' at Gimpo Korea Airports Corporation. When asked about his possible reappointment, as his term expires in March, he was reserved, saying, "(Reappointment) might happen, but I don't know." Regarding the possibility of a merger with Air Premia if acquired by Daemyung Sono Group, he added, "It is not possible to know at this time."

Jung Hong-geun, CEO of T'way Air, is answering questions from the press at the 'CHANGE BEGINS with A330' media day event commemorating the introduction of Airbus A330 aircraft, held on the 17th at the parking area of Gimpo International Airport in Gangseo-gu, Seoul. Photo by Airport Photographers Group

Daemyung Sono Group's Sono International officially began management participation on the 22nd by demanding management improvements from T'way Air, requesting inspection and copying of the shareholder registry, and submitting shareholder proposals. Daemyung Sono is the second-largest shareholder of T'way Air, holding a 26.77% stake, and its shareholding may increase further.

From June to July last year, Daemyung Sono Group purchased T'way Air shares from the private equity fund JKL Partners through its affiliates Sono International and Daemyung Sono Season. In October, it also acquired 50% of the shares of JC Aviation No.1 Limited Partnership, the second-largest shareholder of another LCC, Air Premia. Sono International holds a call option to purchase the remaining 50% stake after June this year.

Daemyung Sono Group is expected to attempt to enter the board of directors at T'way Air's regular shareholders' meeting in March. It is known that they recently formed an internal aviation business task force (TF).

CEO Jung diagnosed that "there are many domestic LCCs," and stated, "The restructuring of the LCC market is positive in terms of strengthening safety and operational efficiency." He added, "Considering safety issues, an integrated LCC would have synergistic effects."

Currently, there are nine domestic LCCs, among which the merger of Korean Air and Asiana Airlines is expected to create the integrated Jin Air (Jin Air, Air Busan, Air Seoul). If Daemyung Sono Group succeeds in acquiring T'way Air, it is also widely reported that there is a high possibility of pursuing a merger with Air Premia.

Regarding the four European routes inherited during the corporate merger of Korean Air and Asiana Airlines, CEO Jung said, "(Our) long-haul routes, including Europe, are cruising smoothly."