EXTRANS GLOBAL - Air Freight News - Week 37 2025

1. Air Cargo General

1) T'way Air to Rename to "Trinity Airways" Next Year

T'way Air announced on the 8th that it will proceed with the process of renaming itself to "Trinity Airways" in the first half of next year.
Taking this name change as an opportunity, the airline plans to fully leverage synergies with its parent company, Daemyung Sono Group, such as launching integrated products combining air travel, tourism, and accommodation.

Starting from the first half of next year, T'way Air will sequentially carry out the name change process and implement a full rebranding with a new brand identity, including the repainting of aircraft liveries. The goal is to create a new customer experience based on safety and trust, while strengthening the integrated image of the group.

The new name "Trinity" is derived from the Latin word "Trinitas," meaning "three united into one to achieve perfection." It symbolizes the airline’s aim to go beyond existing air services and combine travel and accommodation to provide customers with a more enriching experience.

This name change is expected to mark the start of realizing full-fledged synergies with Daemyung Sono Group, which acquired T'way Air. The two companies will work to strengthen practical synergies, such as launching differentiated package products that link air routes with hotels and resorts, and expanding customer benefits through an integrated membership program.

2) Turmoil in the LCC Landscape – A Transitional Period for LCCs Driven by Sales, Mergers, and New Entrants

Signs of a reshuffle in the low-cost carrier (LCC) market are emerging, with a series of major developments: rumors of Eastar Jet’s sale, the merger of Jin Air, Air Seoul, and Air Busan, Sono International’s acquisition of T'way Air, the redistribution of flight slots between Korean Air and Asiana Airlines, and the entry of new carrier Parata Airlines.

Since being acquired by Sono International in June, T'way Air has accelerated its organizational restructuring. It is exploring brand synergies by launching promotions linked to Sono Hotel & Resort. As Sono Hotel & Resort operates acquired hotels overseas in locations like Paris (France), New York (USA), and Hawaii (USA), the acquisition of T'way Air is expected to create synergies by integrating air travel with the Sono Group’s hotels and resorts. Many observers note that the long-term impact of the corporate integration with Sono International on T'way Air remains to be seen.

However, T'way Air has been facing growing pains from operating long-haul routes. While it recorded operating profits and net profits in 2023, it slipped into a deficit after launching European routes in 2024. In the first half of this year, it was the only airline to post a deficit of over 100 billion won. Ultimately, the Sono Group decided to improve T'way Air’s financial structure by injecting 200 billion won in capital.

Long-haul routes incur higher costs compared to short-haul routes, leading some industry insiders to describe T'way Air’s long-haul operations as a "poisoned chalice." While doubts persist about whether long-haul routes will become profitable, T'way Air continues to invest in this segment—recently signing an interline agreement with Air Premia to expand its network in the U.S. market.

Eastar Jet is currently the subject of sale rumors, just two years after being acquired by VIG Partners in 2023. Some sources suggest that as Eastar Jet’s operating deficits narrow and its valuation rises, VIG Partners (a private equity firm) may seek a quick exit. Additionally, Eastar Jet is expected to benefit from the September flight slot redistribution, which is being conducted as a condition for the merger of Korean Air and Asiana Airlines. Jin Air, Air Seoul, and Air Busan are expected to be excluded from this redistribution.

Jeju Air is also viewed as being in a disadvantaged position due to the after-effects of an aircraft accident late last year. As a result, Eastar Jet, T'way Air, and Aero K are seen as strong competitors for the redistributed slots, which include routes to Osaka, Nagoya, and Sapporo (Japan); Beijing, Changzhou, and Xi’an (China); and Jakarta (Indonesia).

Eastar Jet is regarded as highly competitive, given its network focused on medium-haul routes. Notably, the slot redistribution includes many "lucrative routes" to China and Japan, meaning airlines that secure these slots are likely to see significant growth benefits. An airline industry official predicted, "Since Jin Air, Air Seoul, Air Busan, and Jeju Air may be excluded from this slot redistribution, there will be few competitors—and Eastar Jet is expected to demonstrate strong competitiveness."

Parata Airlines has obtained an Air Operator’s Certificate (AOC) from the Ministry of Land, Infrastructure and Transport. It imported its first A330-200 aircraft in July and plans to introduce its second, third, and fourth aircraft by the fourth quarter. Parata Airlines intends to build competitiveness by operating routes to key destinations like Japan first. According to the airline, since the mandatory period for basing operations at Yangyang Airport (from its days as Fly Gangwon) has ended, some international routes will likely operate from Incheon International Airport. Parata Airlines aims to launch domestic flights in the fourth quarter and later expand to international services.

3) Parata Airlines Completes Re-issuance of Air Operator’s Certificate (AOC) – Commercial Flights "Imminent"

New carrier Parata Airlines announced on the 9th that it received the re-issued Air Operator’s Certificate (AOC) from the Ministry of Land, Infrastructure and Transport on the 8th, and will now launch full-scale commercial flights.

An Air Operator’s Certificate (AOC) is a certification process that verifies, in accordance with government safety standards, whether an airline holding an air transport business license has established systems for personnel, facilities, and maintenance necessary for safe operations, and has completed all preparations for commercial flights.

After obtaining a license to change its air transport business operator in March, Parata Airlines has gradually prepared infrastructure for safe operations, including introducing two aircraft, recruiting a large number of staff, and building maintenance and operational systems.

The acquisition of this AOC is particularly significant as it demonstrates compliance with the Ministry of Land, Infrastructure and Transport’s recently strengthened safety standards.

Parata Airlines plans to proceed with the next steps for its full-scale launch, such as opening its website and starting ticket sales, within this week. Earlier, Winix—an appliance manufacturer founded in 1973—judged the aviation industry to be a new growth driver for the group and a sector that could generate synergies with its existing core businesses. In August last year, Winix acquired Fly Gangwon and renamed it Parata Airlines.

Yun Chul-min, CEO of Parata Airlines, stated, "With safe operations as our top priority, we will do our best to become a beloved and reliable partner for customers by providing rational and differentiated services."

4) Jeju Air – Will the "Butterfly Effect" of Aekyung Industrial’s Sale Lead to the Acquisition of Eastar Jet?

As Aekyung Group has selected Taekwang Group as the preferred bidder for the acquisition of Aekyung Industrial, there are speculations that Jeju Air (a subsidiary of Aekyung Group) could move to acquire Eastar Jet once the M&A (merger and acquisition) of Aekyung Industrial between the two groups is finalized.

Recently, Aekyung Group awarded the preferred bidder status for the acquisition of a 63.38% stake in Aekyung Industrial to a consortium consisting of Taekwang Industrial, Titu Free Investment, and Yulantain Bestment. The business community estimates that Taekwang Group will invest over 400 billion won to acquire Aekyung Industrial. Once the sale is completed, Taekwang Group plans to diversify beyond its petrochemical-focused core business into future new ventures such as cosmetics, energy, and real estate development, using the acquisition of Aekyung Industrial as a catalyst.

Aekyung Group is expected to refine its "New Aekyung" strategy—centered on aviation and chemicals—using the proceeds from the sale of Aekyung Industrial. In particular, the "butterfly effect" of the M&A between the two groups and recent changes in South Korea’s domestic LCC market have made the scenario of Jeju Air acquiring Eastar Jet highly plausible.

While VIG Partners (Eastar Jet’s major shareholder) has not officially put the airline up for sale, it is known to be seeking potential buyers through key advisors. Aekyung Group and Daemyung Sono Group have been mentioned as potential acquirers.

However, Daemyung Sono Group has already committed to injecting 200 billion won in capital into T'way Air (which it acquired) through methods such as a paid-in capital increase via third-party allocation, a stock dividend, and the issuance of perpetual bonds. Given this full-scale support for T'way Air, an additional airline acquisition by Daemyung Sono Group is practically impossible.

Some opinions suggest that Jeju Air—currently the top LCC in terms of capacity share (CC)—needs to acquire Eastar Jet to solidify its position. With the launch of an "integrated LCC" (formed by merging the subsidiaries of Korean Air and Asiana Airlines) looming following the two full-service carriers’ merger, Jeju Air also needs to expand its scale through M&A.

Once the sale of Aekyung Industrial is completed, Aekyung Group will secure tens of billions of won in funds, allowing it to act as a major player in the LCC industry. However, some analysts note that Jeju Air is currently focused on handling the aftermath of last year’s aircraft accident and restoring its operations, making it difficult to pursue an M&A within this year.

5) Airlines Movement

Hong Kong Air Cargo (RH)

Effective September 2nd: Increased frequency of the HKG (Hong Kong) – DAC (Dhaka, Bangladesh) cargo route to twice weekly (using A332 aircraft).
September 8th – September 30th: Expanded service on the HKG (Hong Kong) – HAN (Hanoi, Vietnam) route by adding 6 additional cargo flights per week.

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