Tirebank Acquires 22% Stake in Air Premia
T'way to Expand North American Routes Starting with Vancouver in July
Daemyung Sono Group has sold its entire stake in the low-cost carrier (LCC) Air Premia. While industry observers had speculated that the group would launch a second Asiana Airlines by combining Air Premia with T'way Air, which it had previously acquired, the group has instead decided to focus on expanding T'way Air.
Sono International, a subsidiary of Daemyung Sono Group, announced on the 2nd that it has signed a contract to sell its entire 22% stake in Air Premia, which it held jointly with JC Partners through JC Aviation No. 1 LLC (JC SPC), to Tirebank. The sale price is 1,900 won per share, amounting to approximately 119,426,930,000 won for a total of 62,856,278 shares.
Previously, Sono International and JC Partners each held call and put option rights, respectively. However, both parties deferred the exercise of these options and entered into the sale agreement. The final closing date of the transaction is scheduled for the end of September. Until the stake sale is completed, Air Premia will continue to be jointly managed by the two parties.
Sono International plans to focus on managing T'way Air in the future. Initially, there had been speculation that Sono International would seek to acquire management rights of Air Premia after securing control of T'way Air through approval from the Fair Trade Commission. Sono International was reportedly interested in acquiring Air Premia, which, apart from major airlines, is the only carrier operating routes to North America.
However, with T'way Air scheduled to launch a new route to Vancouver, Canada in July, the company appears to have determined that it would be better to expand its North American routes starting with this new service. Sono International emphasized that T'way Air has established a stable global network, operating not only in Korea and Asia but also in major European destinations such as Paris and Rome. The company plans to pursue various synergy strategies by linking this network with its domestic and international hotel and resort infrastructure.
A Sono International representative stated, "We made a strategic decision to sell our stake in Air Premia in order to focus on the operation and long-term growth strategy of T'way Air's aviation business," adding, "Through this transaction, we have streamlined our aviation business portfolio. Amid the rapidly changing aviation market environment, we aim to achieve sustainable and substantial growth."
Meanwhile, Air Premia's largest shareholder, Tirebank Group, has now secured full management control. A Tirebank Group representative said, "By acquiring the additional 22% stake held by Sono International, we now own over 70% of Air Premia," and added, "Air Premia will grow into a premium airline representing Korea and contribute to elevating the country's status on the global stage."
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