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Korea warns start-ups not to change business plans
May 3rd 2019
Air Premia CEO Kim Jong-chu has resigned. Read More »
The status of Air Premia's license is uncertain after CEO Kim Jong-chul resigned. Kim said in his resignation letter dated 2 May that he opposed the appointment of certain managment representing one of the shareholders. "I think it is impossible for you to operate the airline that you meant," Kim wrote. There were reports about a dispute concerning aircraft acquisition. Air Premia plans to lease 787-9s from Air Lease Corporation.
Korea previously warned three start-up airlines they could lose their license if they make substantial changes to their business plans. This includes changing senior management. Korea in March year gave business approval to three new airlines in a competitive proceeding that awarded licenses based on opportunity but also diversifying Korea’s aviation industry.
Two of the licenses went to airlines that must have a substantial portion of their operation at a regional city, while a third license is to Air Premia, which plans to fly long-haul from Seoul. An Air Premia shareholder meeting saw the board want to replace founding CEO Kim, a former CEO of Jeju Air.
Air Premia requested to change its business plan to reflect the CEO change, prompting the regulator to warn all three start-ups. The regulator told Air Premia it could keep Kim as CEO per the business plan or change CEO and re-submit its business plan, which may not see the license granted.
