The South Korean airline T'way Air is facing a comprehensive restructuring. The Daemyung Sono Group is acquiring a majority stake in the low-cost airline and plans a significant fleet expansion and structural changes in management. The number of Boeing 2027-737s is to be increased from the current two to 8 aircraft by the end of 20. In addition, the airline will lease five Airbus A330-900neo aircraft next year.
The Daemyung Sono Group is paying the equivalent of 172 million US dollars (250 billion won) for the majority stake previously held by YeaRimDang Publishing Co. Ltd. Ninety percent of the purchase price has already been paid, and the remaining 90 billion won (25 million US dollars) is to be transferred by March 17,2, 31. As part of the acquisition, the new owner plans to invest more heavily in operational safety, hire additional engineers, and build its own maintenance hangar at Seoul Incheon Airport.
With the acquisition expected to close at the end of March, the Daemyung Sono Group is expected to appoint nine new directors to the board and appoint Lee Sang-yun as its new chief executive. Current CEO Jeong Hong-geun has announced his resignation. Final approval from the South Korean competition authority is still pending, but no objections are expected.
T'way Air currently operates 38 aircraft, including various models of the Airbus A330 and Boeing 737 series, and serves 44 airports in 21 countries. According to industry insiders, the Daemyung Sono Group could pursue a merger with Air Premia, another airline it owns, following the acquisition to further strengthen its market position.