The second largest shareholder of t'way Air (TW, Daegu) is demanding that the carrier's senior management resign. Daemyung Sono Group, which owns 26.77% of the airline, formally requested the resignations accusing the executives of failing to raise the capital needed to keep the airline running smoothly and maintain safety standards.
"We have received the certified letter and are reviewing specific response measures from various angles," a t'way Air spokesperson told local news outlets.
Daemyung Sono asserts that t'way Air cannot properly operate under its current management system, local news sites report. One of its demands is to implement a paid-in capital increase through shareholder allocation to upgrade aircraft and operations. Recent attempts at paid-in capital increases have floundered before they started.
Conflict between the two top shareholders is expected to spill over during a March 2025 shareholders meeting.
Four of the seven board members at the airline will step down or stand for reelection at the meeting because their terms are expiring. Daemyung Sono is expected to try to install some of its people as replacements. Among the directors with expiring terms is CEO Jeong Hong-geun. However, the votes of minority shareholders will likely determine the board's final makeup. Daemyung is trying to secure their votes by stressing the need for additional investment in safety and capital.
Daemyung Sono acquired its shares last year by buying parcels offered by private equity group JKL Partners, formerly a key t'way Air shareholder which to quit the airline industry. Currently, the largest shareholders of t’way are affiliated companies T'way Holdings and YeaRimDang, which hold a combined 30.07% of the carrier.
Reportedly, Daemyung Sono tried to purchase YeaRimDang's shares while securing JKL Partners' stake but the negotiations fell through. Daemyung Sono is Korea's largest resort and hotel owner, among other things, but has a reputation as an activist shareholder. Chairman Seo Jun-Hyeok has said he likes the airline industry because it offers synergies with the company's hospitality businesses. Daemyung also owns 22.1% of Air Premia (YP, Seoul Incheon). Local media have specualted that the holding might be seeking to merge the two airlines in the long-term.
