**Demyoung Sono Group, the second-largest shareholder, demands management improvements, including the resignation of the current management.**
In T’way Air, the second-largest low-cost carrier (LCC) in the domestic industry, signs of a management dispute are emerging. Demyoung Sono Group, the second-largest shareholder of T’way Air, sent a “management improvement request” to T’way Air on the 20th, demanding the resignation of the current management.
Demyoung Sono Group, the leading company in the domestic resort industry, holds a 26.77% stake in T’way Air through its affiliates, Sono International and Demyoung Sono Season. The share distribution of affiliates is 16.77% for Sono International and 10% for Demyoung Sono Season.
The total shareholding of the current largest shareholder, including T’way Holdings (28.2%) and Yerimdang (1.72%), is 30.06%. There has been ongoing speculation in the industry about the possibility of a management dispute between the two sides, as the share difference is just over 3 percentage points.
Last year, Demyoung Sono Group also acquired a stake in Air Premia, an LCC focused on North American routes, becoming its second-largest shareholder. Observers speculate that they are seeking synergy between their strengths in the resort and aviation businesses.
A T’way Air representative said, “The current management is reviewing the management improvement request sent by Demyoung Sono Group,” adding that “there has been no response or official stance from the management yet.”
Demyoung Sono Group is reportedly proceeding with follow-up actions related to their management improvement request. As a result, tensions over management control between the two sides are expected to escalate ahead of T’way Air’s shareholders’ meeting scheduled for March.