News
South Korea’s Air Premia secures US$33 million in start-up funding
September 14th 2018
South Korean start-up, Air Premia, has secured KRW37 billion (US$33 million) in initial funding, paving the way for an application for an air operator’s certificate (AOC) with South Korea’s Ministry of Land, Infrastructure and Transport (MOLIT). Read More »
Investors were Capstone Asset Management Co., Yuanta Investment Co. and Winvest Venture Capital. The start-up had previously secured KRW10.5 billion from the Korean American Chamber of Commerce of Los Angeles, Fast Investment, DS Asset Management and Hong Sung-Bum, the founder of Korea-based biopharmaceutical firm, Hugel Inc.
Nevertheless, the airline has yet to meet its KRW80-100 billion funding target and is expecting to launch another fundraising round before year end. Air Premia has met MOLIT’s revised funding requirements that specify new airlines must bring a minimum of KRW30 billion in initial funds to the table and operate at least five aircraft to apply for an AOC. .Air Premia said it would apply for its AOC later this month.
The carrier says it will be a medium and long-haul airline using either A330neo or B787-9 aircraft. Air Premia’s first destinations will include San Jose, Helsinki and Munich, cities popular with South Korean tourists. The airline will have two classes, premium economy and economy and have more leg room and amenities than full service international carriers, Asiana Airlines and Korean Air.
Air Premia founder, ex-Jeju Air CEO, Kim Jong Chul, said the airline would offer a 35-inch pitch in economy class and a 42-inch pitch in premium economy class at more affordable prices than Korean Air and Asiana. The two legacy carriers offer an average seat pitch of 30-32 inches in economy. Asiana has a 36-inch pitch in premium economy on its A350 fleet. Korean Air does not offer premium economy.
Although it is marketed as budget carrier, Air Premia will offer passengers a free baggage allowance, inflight meals and Wi-Fi. Like Asiana and Korean Air, Air Premia plans to be based at Seoul Incheon International Airport.
