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Air Premia retains license after review
September 20th 2019
Management change prompted Seoul to review start-up’s license. Read More »
Korean long-haul hybrid start-up Air Premia has retained its business license, paving the way for its Air Operator Certificate (AOC) and the launch of 787 flights in September 2020. Air Premia plans to have seven 787s in 2022. By then, it will also fly to the U.S.
Air Premia was subjected to a government review after the airline changed its CEO. In March, Seoul gave the carrier and two other airlines a business license on the condition there was no major change in their business plans, including management.
Korea’s Transport Ministry said Air Premia’s finances were sound, but would be more closely monitored. The ministry also had Air Premia strengthen its internal governance by requiring management to notify changes to any shareholder with a holding greater than 5%.
After approval, Air Premia CEO and co-founder Kim Jong-chul disagreed with how shareholders wanted to acquire 787s. Kim was a former CEO of Jeju Air. In his place, Air Premia installed dual CEOs, Kim Se-young and Sim Joo-yeop.
The business licenses were approved on the condition the start-ups receive their AOCs within a year and launch flights within two years. This week, one of the other start-ups, Fly Gangwon, received its first aircraft. It plans to commence domestic 737 flights next month. The third start-up, Aero K, is working through the regulatory process.
