Fly Gangwon, the low-cost carrier of South Korea, has been listed for sale after selecting Samjeong KPMG and KR&Partners as co-organisers in fund raising and the change of management rights. The airline was under financial burden since last few years which led to raising of funds to sustain operations.
The fundraising will be carried out in the form of issuing new shares with large corporations and investors planning to invest, as per sources.
As of now, the airline has been officially listed for sale.
The airline was founded in 2016 and commenced commercial operations in November 2019 with a fleet of Boeing 767-800. With days of launch the airline was hit by COVID-19 pandemic leading to suspension of its international flights.
However, as the restrictions lifted Fly Gangwon reopened their service to Clark in the Philippines last year, which has given the airline an increase in sales. Despite this, the airline is in deep financial trouble and seeking funds to sustain operations.
Currently, the largest stakeholder in Fly Gangwon is Joo Won-seok, the Chief Executive Officer of the company, who holds a 44.2% stake in the airline, with the second biggest being Seven Bridges Private Equity, with a 5.71% stake.
Fly Gangwon is based out of South Korea’s Yangyang International Airport and currently operates a fleet of two Boeing 737-800s and one Airbus A330-200.