Sono Hospitality becomes new owner of Korean budget carrier T’way Air

South Korea’s top resort operator Sono Hospitality Group has emerged as the new owner of budget carrier T’way Air Co. by acquiring the entire T’way stake held by YeaRimDang Publishing Co. and its related parties for 250 billion won ($174 million).

Sono International Co., the holding firm of Sono Hospitality Group, on Wednesday signed a deal to purchase 52.34 million shares, or a 46.26% stake, in T'way Holdings Inc. from YeaRimDang and its family members – the previous No. 1 stakeholders of the low-cost carrier.

With this deal, Sono Hospitality Group, formerly Daemyung Sono Group, has secured management control of T'way Air.

T'way Holdings, the holding firm of T’way Air, owns a 28.02% stake in T'way Air.

Before the latest acquisition, Sono Hospitality Group already held a 26.77% stake in the budget carrier through its two subsidiaries – 16.77% owned by Sono International and 10% by Daemyung SonoSeason Co.

By adding T'way Holdings' stake, Sono Hospitality Group will effectively own 54.79% of T'way Air, solidifying its control.

TO CHANGE T’WAY’S BRAND

Following the acquisition, Sono Hospitality Group outlined its future vision, emphasizing three key strategies: strengthening aviation safety and maintenance capabilities, enhancing profitability, and creating synergy between its leisure and aviation businesses.

Leveraging its extensive domestic and international hotel and resort chains, the group aims to develop integrated travel packages.

A group official said Sono intends to rename T'way Air in line with its broader corporate identity.

It also plans to join a major global airline alliance to enhance its international network.

Sono Hospitality Group is the largest resort operator in Korea. It operates 18 hotels and resorts nationwide and offers over 11,000 rooms.

The group’s operations include Sono Hotels & Resorts, Sol Beach Hotel & Resort, Vivaldi Park Ski World, Vivaldi Park Ocean World, golf courses and yacht clubs.

Sono has also been aggressive with its acquisitions of hotels and resorts overseas.

Last year, Sono Hospitality acquired Hotel Dame Des Arts in Saint Germain-des-Prés, Paris and a 100% stake in Hawaii-based Waikiki Resort Hotel Inc. from Hanjin KAL Corp. in April.

Between 2022 and 2023, Sono International purchased The Normandy Hotel in Washington, D.C. and 33 Hotel, New York City, Seaport.

IN PURSUIT OF ANOTHER LCC AIR PREMIA

Sono Hospitality also seeks to acquire a controlling stake in another low-cost carrier, Air Premia Inc.

Last October, it acquired an 11% stake in Air Premia from Seoul-based private equity firm JC Partners for 53.7 billion won, plus a call option to buy an additional 11% stake in the budget carrier by the end of June 2025.

The Air Premia deal came after the hospitality group purchased a 26.77% stake in T’way Air from Seoul-based private equity firm JKL Partners in two share transactions in July and August – deals that made Sono T'way's No. 2 shareholder.

If the hospitality group successfully acquires the management rights of Air Premia, it eventually aims to combine the two budget carriers to better compete with domestic and international rivals, according to a Sono International official.

Late last year, Sono International embarked on a process to go public on Korea’s main bourse Kospi as early as the first half of 2025 to raise funds and enhance its corporate value.

Sono's original IPO plan was scrapped in 2019 due to the COVID-19 pandemic.

Write to In-Soo Nam at isnam@hankyung.com

Jennifer Nicholson-Breen edited this article.