Korea’s Antitrust Regulator Approves Daemyung Takeover of t’way Air

South Korea’s Fair Trade Commission has approved Daemyung Sono Group’s acquisition of t’way Air, clearing the final regulatory hurdle for the KRW250 billion (USD185 million) transaction. The approval allows Daemyung Sono to proceed with purchasing a 46.26% stake in the low-cost carrier from YeaRimDang Co., Ltd., bringing its total shareholding above 50% and giving it full control.

According to the Chosun Ilbo, the regulator informed both parties of its decision on June 11. The review process had taken months as the Fair Trade Commission assessed potential impacts on market competition and required financial assurances that Daemyung could support t’way Air after the acquisition.

Daemyung Sono plans to streamline and modernize t’way Air’s 41-aircraft fleet. The current fleet includes six A330-200s, four A330-300s, three Boeing 737-8s, twenty-six Boeing 737-800s, and two Boeing 777-300ERs. The airline will focus on operating Boeing 737 types for regional Asia routes, while A330-300s and incoming A330-900Ns (one delivered, five on order) will handle long-haul services. The A330-200s and 777-300ERs will be returned to lessors as the new aircraft arrive.

The regulatory approval will also trigger a shareholder meeting on June 24 to elect a new board. Daemyung Sono Chairman Seo Jun-hyeok is expected to join the board as part of the company’s active involvement in managing its new airline asset. With majority ownership secured, Daemyung Sono is likely to have its board candidates approved without opposition.

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