As the largest shareholder of T’way Air has changed to Daemyung Sono Group, there is interest in whether it will fill the void left by Asiana Airlines, which will disappear due to its merger with Korean Air. Daemyung Sono Group has previously announced plans to merge T’way Air with its acquired management rights of Air Premia to create a large low-cost carrier (LCC). However, even if Daemyung Sono Group acquires Air Premia, it will require a vast amount of capital to expand its operation fleet, making significant growth in the short term unlikely.
On the 27th, according to the aviation industry, Sono International decided to acquire 46.26% of T’way Air's equity held by four major shareholders, including YeaRimDang, the previous day. The sale price is 250 billion won, and once Sono International completes the payment, it will become the largest shareholder of T’way Air as of March 31.
As of the end of last year, T’way Air operated 38 passenger aircraft and has over 40 routes in Asia, Europe, and Australia. In June, it plans to expand its routes to North America by launching services to Vancouver, Canada. While it has four fewer aircraft than its competitor, Jeju Air, its operational network is over twice as extensive. It has nine more aircraft than JIN AIR and operates 13 more routes.
Experts believe that if Daemyung Sono Group acquires and merges with Air Premia, it could create an environment where it can compete with major airlines, as it will have destinations in all major continents except Africa. Lee Hwi-young, a professor in aviation management at Inha University, noted, "What matters for airlines is which routes they operate and how they create products. If T’way Air and Air Premia merge, it would be reasonable to expect the major products operated by Asiana Airlines will remain intact."
In November last year, Daemyung Sono Group acquired an 11% equity stake in Air Premia through Sono International and secured a call option to purchase an additional 11% since June.
Even if T’way Air and Air Premia merge, they will need to expand their fleet to operate long-haul routes reliably. As of the end of last year, Asiana Airlines had 82 operational aircraft, which is close to double the 44 aircraft of T’way Air and Air Premia combined. Generally, it costs nearly 4 billion won annually to operate a wide-body aircraft (a large aircraft with two or more aisles).
Daemyung Sono Group used 250 billion won for the acquisition of T’way Air but previously received an investment worth 500 billion won. They are planning additional capital acquisition strategies while pursuing an initial public offering (IPO) for Sono International.