T'way Air CEO to step down after decade of leadership

By Nam Hyun-woo

T’way Air CEO Jeong Hong-geun will leave the company after 10 years of leading the low-cost carrier (LCC), which will make him the longest-serving CEO in Korea's LCC sector.

According to industry officials on Monday, Jeong sent an email to T’way Air staff last week saying he would step down after the annual general meeting of shareholders slated for March 31.

“T'way Air will welcome a fresh and forward-thinking leader, who will enable the company to embrace change and further solidify its position as an LCC that successfully operates long-haul flights,” Jeong said.

“As the longest-serving CEO among domestic LCCs, I was able to fulfill my responsibilities thanks to everyone’s generous support and encouragement … I feel truly fortunate and grateful to step down without regrets or major setbacks.”

Jeong is one of the top experts in the airline industry with nearly 40 years of experience. He joined Korean Air in 1986 before moving to T’way in 2013. Since taking office as CEO in 2015, he has led T'way Air through significant milestones, including its initial public offering in 2018 and the launch of long-haul routes to Europe, laying the foundation for the company to transform into a hybrid LCC capable of long-distance flights.

Jeong will be succeeded by a board member recommended by Sono Hospitality Group, the new owner of T’way Air. Sono, Korea’s leading hotel and resort chain operator, agreed last month to acquire a controlling stake in T’way from its existing largest stakeholder, Yerimdang, for 250 billion won ($172.38 million).

If the trade is approved by Korea’s Fair Trade Commission before the shareholder meeting, nine directors recommended by Sono will be appointed to T’way’s board. If the antitrust watchdog does not approve the deal before the shareholder meeting, Yerimdang nominees will be named to the board first and they will resign afterward to let directors from Sono take their seats.

Rumors suggest that Lee Sang-yoon, head of Sono International’s aviation business task force, will be appointed as the new CEO of T’way Air. Lee joined Sono last year after spending over 20 years at Korean Air.