T'way Holdings recorded a surge in stock prices following the announcement of T'way Airlines' name change. Market analysts interpret this as a sign that the restructuring of the airline business under the Daemyung Sonogroup (now Sonotrinity Group) is gaining momentum.
According to the Korea Exchange, as of 2:40 PM on May 19, T'way Holdings shares rose by 71 won (29.96%) to 308 won. The stock hit the upper limit and continued to attract buying interest.
The upper limit is seen as a result of expectations surrounding the name change and the group's restructuring efforts, which have alleviated financial concerns. Until recently, T'way Holdings was viewed as a company in need of significant financial restructuring. On May 12, the stock fell to 230 won, marking a 52-week low.
T'way Airlines announced the previous day that it had received a license from the Ministry of Land, Infrastructure and Transport to change its name to 'Trinity Airlines.' The approval process was completed about two months after the name change proposal was passed at the regular shareholders' meeting in March.
The Ministry reportedly required measures to prevent consumer confusion, maintain safety operations, and complete approvals from foreign aviation authorities during the approval process. Consequently, the actual launch under the new name will occur sequentially after obtaining approvals from foreign authorities. Until then, the airline will continue to operate under the T'way Airlines name, airline code (TW), and flight numbers.
The market perceives this name change not merely as a rebranding but as a significant step in the restructuring of the Sonotrinity Group's airline business.
Currently, the largest shareholder of T'way Holdings is Sonointernational, which holds a 46.26% stake. Trinity Airlines (formerly T'way Airlines) is also primarily owned by Sonointernational, which holds 41.95% of its shares. T'way Holdings is the second-largest shareholder of Trinity Airlines, with a 17.29% stake.
Sonotrinity Group acquired a 26.77% stake in T'way Airlines from JKL Partners for approximately 176 billion won in the second half of 2024, becoming the second-largest shareholder. In February of last year, it successfully secured management rights of T'way Airlines by purchasing a 46.26% stake in T'way Holdings from Yerimdang for about 250 billion won.
Industry experts view this as a significant move by the Sonogroup to enter the aviation sector, which has long been a goal. The strategy aims to maximize synergies between its existing hotel and resort businesses and airline routes through travel packages and membership services.
The speed of expansion for Sonotrinity Group's airline business will likely depend on future fleet expansion, route strategies, and service restructuring. Notably, if the strategy of combining airlines, hotels, and resorts into a comprehensive travel platform materializes, it could create a differentiated business structure compared to existing domestic leisure companies.
The name change to 'Trinity Airlines' is also seen as an extension of this strategy, aiming to move away from the low-cost carrier image and strengthen the group's identity while establishing a new global brand presence.
Meanwhile, T'way Holdings decided on April 22 to consolidate its common shares at an 80% ratio, merging five shares into one, as part of its financial restructuring efforts to cover losses. Following the consolidation, the number of issued shares will decrease from 113.16 million to 22.63 million, and its capital will reduce from 56.5 billion won to 11.3 billion won.
* This article has been translated by AI.
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