EXTRANS GLOBAL - Air Freight News - Week 19 2025

Air Cargo General

1) Daemyung Sono Sells Air Premia - Is the Dream of a Second Asiana Airlines Growing Distant?

Daemyung Sono Group Chairman Seo Joon-hyuk’s Dream of Creating a Second Asiana Airlines Falls Through
Seo Joon-hyuk, Chairman of Daemyung Sono Group, who aimed to secure a position as the second Asiana Airlines, has seen his plans collapse after recently transferring all shares of Air Premia to Tyrebank.
The delay in the Fair Trade Commission (FTC)’s merger review appears to have been the decisive factor. Analysts interpret this as a strategic move to first secure T’way Air before expanding further in the airline business.
Sono International, the holding company of Daemyung Sono, recently sold its entire 22% stake in Air Premia (held jointly with JC Partners through JC Aviation No. 1 LLC) to Tyrebank.
In October 2023, Daemyung Sono acquired 50% of JC Partners’ Air Premia stake (22% ownership) for KRW 47.1 billion. Considering Daemyung’s existing 11% stake, the sale is expected to bring in approximately KRW 59.5 billion in cash. While the company realized a KRW 12.4 billion profit from the sale, Chairman Seo’s ambitious plan to acquire Air Premia ultimately failed.
Initially, Seo planned to merge T’way Air and Air Premia to create a second Asiana Airlines, but the sale suggests he has abandoned this strategy entirely. Notably, Daemyung Sono had a call option to buy JC Partners’ remaining 50% stake after June 2024.
The decision to sell Air Premia is largely attributed to the prolonged FTC review of T’way Air’s merger, delaying Daemyung Sono’s airline expansion plans.
The FTC is currently reviewing the business combination between Daemyung Sono, T’way Holdings, and T’way Air. Daemyung Sono planned to appoint a new board of directors at T’way Air’s March 31 extraordinary shareholders’ meeting, but the FTC’s approval did not come in time, leading to the deal’s collapse.
The FTC’s review has now entered its second month with no clear timeline. Typically, such reviews take 30 days, extendable to 90 days if necessary. Daemyung submitted its documents on February 27, meaning 70 days have passed—already exceeding the standard period. With 20 days remaining, some predict further delays, especially since the FTC requested additional documentation, which is not counted in the review period.
Concerns that a T’way-Air Premia merger could disrupt domestic airline competition likely influenced the decision to sell Air Premia.
Previously, when Korean Air attempted to merge with Asiana Airlines, antitrust concerns led to route transfers—T’way Air took over European routes, while Air Premia received U.S. routes. A merger between the two would nullify this arrangement, raising regulatory concerns. Daemyung’s sale of Air Premia may have been a preemptive move to ease FTC scrutiny, similar to past cases.
With Daemyung simplifying its airline business structure, attention now turns to whether the FTC will accelerate its review. Daemyung plans to hold another extraordinary shareholders’ meeting on the 23rd to appoint T’way Air’s new board.
Following the sale, Daemyung announced it would focus on T’way Air’s operations. While Sono International had been interested in Air Premia (the only mid-sized Korean airline operating U.S. routes), T’way Air is expected to launch Vancouver flights in July and expand further into the U.S. market. This suggests Daemyung is shifting to a long-term growth strategy centered on T’way Air.
A Sono International official stated, *“The sale of Air Premia shares was a strategic decision to focus on T’way Air’s operations and long-term growth. We are waiting for FTC approval ahead of the upcoming shareholders’ meeting on the 23rd.

2) Air Incheon (KJ), which acquired Asiana Cargo, to relocate to integrated Magok office in July

Air Incheon, a cargo-only airline, announced on May 7 that it will open an integrated office in One Grove, a business-commercial complex in Seoul’s Gangseo District, ahead of its acquisition of Asiana Airlines’ cargo division in July.
The new office, set to move in on the 19th, will span approximately 4,132㎡ (1,250 pyeong) and house the headquarters for management, cargo operations, flight operations, and safety and security.
Around 350 employees—including Air Incheon’s existing staff and Asiana Airlines’ cargo division—will work at this location.
Air Incheon completed the first-phase safety system change review by the Ministry of Land, Infrastructure and Transport on the 29th of last month, a necessary step for the merger, with the second-phase review scheduled for the 12th.
The airline also plans to strengthen its global network, including expanding key routes to the U.S. and Europe.
It aims to maximize synergies by combining Asiana Airlines’ existing cargo routes and transport infrastructure with Air Incheon’s operational flexibility.

3) Impact of the repeal of the Minimum Diminuendo: 30% decrease in cargo flights from China and Hong Kong.

Since the U.S. elimination of the de minimis rule began on May 2, air cargo flights from China and Hong Kong have sharply decreased.
Recent market analysts estimate that at least 2,000 tons of daily air cargo space has disappeared from the market, which is expected to significantly impact cargo routes to the Americas.
According to analysis by U.S. e-commerce and logistics consulting firm Cirrus Global Advisors (CGA), an average of 19 aircraft per day have been excluded from U.S.-bound operations since last Friday (May 3).
This considers that UPS and FedEx have also reduced their flight schedules during the same period, with analysis showing that final delivery companies in the U.S. are experiencing severe volume declines. CGA ultimately reports that impacts are spreading beyond traditional B2C e-commerce.
Meanwhile, air cargo data firm Rotate's real-time capacity database also revealed that as of May 6, U.S.-bound air cargo capacity from China and Hong Kong plummeted by 30% compared to a week earlier.
A CGA official explained: "This is a difficult time for airlines to make cancellation decisions in the short term. For example, if a Korean carrier was operating 4 daily cargo flights to the U.S., reducing to 3 still leaves fixed costs like aircraft maintenance and pilot salaries, making complete cancellations difficult."
He warned: "But if consumers now see $19 p o w ers t r i p s b e in g so l df or$ 48 on Temu's website, U.S.-bound flights will inevitably decrease further."

4) Asia-US air cargo volumes shrink significantly in May

Since the 2nd, the U.S. abolished the simplified customs clearance for small imported goods under $800 per shipment from China/Hong Kong, causing the air cargo market to immediately shrink significantly.
After the 2nd, goods under $800 p ers hi p m e n t im p or t e df ro m C hina / Ho n g Ko n g t o t h e U . S . a res u bj ec tt oe i t h er 120$ 100 tariff per shipment.
Starting June 1st, the per-shipment tariff will increase to $200. The U.S. announced it will expand these measures currently applied only to China and Hong Kong to include Macau.
The companies hardest hit are e-commerce logistics leaders like SHEIN and Temu.
U.S. e-commerce/retail logistics consultant 'Cirus Global Advisors' predicts that due to this impact, air cargo demand on transpacific routes will halve compared to last year.
In fact, during the first week of May, the average daily cargo flights via Anchorage (ANC) was 44.5, a 21.2% decrease from the previous week's 65.75 flights.
As of the 5th, the global average air freight rate fell 4.5% week-over-week. According to the Baltic Air Freight Index, Hong Kong (HKG) origin rates dropped 3.3% week-over-week and 7.4% year-over-year. Shanghai (PVG) origin rates also fell 2.34% week-over-week and 8.6% year-over-year respectively.

5) GSA and Airline Trends

Starting from May 8, VN will operate the HAN-SVO2 route with a 787 passenger aircraft twice a week (Tuesdays and Thursdays). Due to baggage-related capacity shortages, cargo sales will not be conducted, but competitive pricing is planned if passenger numbers decrease."

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