Tire Bank Secures Majority Stake in South Korea’s Air Premia

Tire Bank has finalized the purchase of a 22% stake in South Korean hybrid carrier Air Premia, completing the KRW119.4 billion (USD85 million) deal by the September 30 deadline. The acquisition included a previously paid deposit of KRW20 billion, with the remaining KRW99.4 billion settled directly with sellers JC Partners and Sono International.

Unlike initial plans to seek external financing, Tire Bank ultimately self-funded the transaction. The move eases earlier concerns that the acquisition might fall through, particularly after chairman Kim Jeong-kyu was imprisoned on tax evasion charges. Under the agreement, failure to close the deal by the deadline would have triggered penalty interest and potentially allowed sellers to cancel the sale.

With this purchase, Tire Bank and its private equity arm, AP Holdings, now collectively control about 68% of Air Premia, giving them significant influence over the airline’s strategic direction.

Air Premia, based at Seoul Incheon, operates as a hybrid carrier, blending low-cost and full-service elements. The airline has been gradually expanding its international network with a fleet of Boeing 787-9 Dreamliners, serving routes across North America and Asia. Industry observers note that Tire Bank’s investment could provide the airline with greater financial stability and growth momentum as competition in South Korea’s aviation market intensifies.

The acquisition positions Tire Bank not only as a key shareholder but also as a strategic player in shaping Air Premia’s future, as the carrier pursues long-haul expansion and deeper market penetration.

Related News: https://airguide.info/category/air-travel-business/airline-finance/

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com