Seoul: Daemyung Sono Group, a prominent South Korean condominium and resort enterprise, announced that its holding company will divest its stake in a local low-cost carrier as part of an ongoing business reorganization.

According to Yonhap News Agency, the group's holding firm, Sono International, alongside local private equity fund JC Partners, currently holds an 11 percent stake each in Air Premia Inc., forming a 50:50 joint venture.

Sono International and JC Partners have agreed to sell their combined 22 percent stake in Air Premia to local tire distributor Tirebank Co. for 119.4 billion won (approximately US$83.2 million) by the end of September. This transaction is part of a strategic plan to focus on enhancing operations of T'way Air Co. and creating synergies between the low-cost carrier and the group's hotel and resort services, as stated in the company's press release.

Initially, Sono International had considered expanding its stake in Air Premia, which is distinguished as the only local budget carrier offering long-haul routes to the United States. However, the decision to sell was influenced by T'way Air's plans to commence routes to North America, starting with Canada in July, as explained by a company spokesperson. Notably, Air Premia does not operate domestic flights, focusing solely on international routes.

Earlier in February, Sono International entered into a deal to acquire a 26.77 percent stake in T'way Air from Yearim Co., its chief and largest shareholder, for 250 billion won. This acquisition is pending approval from the antitrust regulator, marking a significant step in Sono International's strategic realignment within the aviation sector.