Synopsis
Daemyung Sono Group is actively pursuing management control of T'way Air to enhance its operations and financial performance. The group, a major shareholder, aims to implement management reforms and potentially merge with another airline, Air Premia, to expand service offerings.Key Takeaways
- Daemyung Sono Group is acquiring T'way Air.
- Plans for management overhaul and capital increase.
- Criticisms include low operational reliability.
- New board of directors to be proposed.
- Potential merger with Air Premia under consideration.
Seoul, Jan 22 (NationPress) Daemyung Sono Group, a prominent condominium and resort enterprise in South Korea, announced on Wednesday its intent to acquire management control of the low-cost airline T'way Air to enhance the airline's operations and financial standing.
Sono International, the parent company of Daemyung Sono Group, indicated it is intensifying its involvement with T'way Air, insisting on management enhancements and requesting access to the shareholder registry, as per reports from Yonhap news agency.
The group, which holds a 26.77 percent stake in T'way Air, has formally requested that the airline revamp its management team, alongside advocating for a capital augmentation through a rights offering.
In its proposals, Sono International criticized T'way Air for insufficient investments in maintenance and staffing, as well as lapses in aviation safety oversight.
It also pointed out the airline's low operational reliability, high corrective action rates, and penalties issued by the Ministry of Land, Infrastructure and Transport, asserting that these issues have negatively impacted the airline's brand reputation.
Sono International aims to present a shareholder proposal to appoint new directors at the forthcoming annual general meeting of T'way Air in March.
The group plans to establish a new board of directors to create a stable operational framework, enhance the financial structure, and improve overall management.
Sono International stressed that its demands and proposals are proactive efforts aimed at promoting T'way Air's growth and increasing shareholder value.
"We strive to maximize customer satisfaction for T'way Air and enhance shareholder value by utilizing Daemyung Sono Group's extensive domestic and international infrastructure to introduce diverse products and improve customer services," stated Seo Jun-hyuk, chairman of Daemyung Sono Group.
The group is also contemplating acquiring another low-cost carrier, Air Premia, having secured an 11 percent stake in the airline owned by JC Partners last November.
"We are evaluating the potential merger of the two airlines if we can secure management rights for both T'way Air and Air Premia," an official from Sono International remarked.
The official further noted that if the merger materializes, it would create a new airline capable of servicing a wide range of routes, including domestic and short-to-medium routes across Asia, as well as long-haul services to Europe and the Americas.
