[Photo provided by Air Premia]

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South Korea’s fledgling low-lost carrier Air Premia was able to hold onto its business license after teetering on the brink of losing it due to shift in ownership.

The Ministry of Land, Infrastructure and Transport on Monday granted a conditional business license to the newcomer Air Premia, founded in July 2017 by former head of Korea’s top budget carrier Jeju Air.

The company had readied a business operation after passing the government’s evaluation initially in March, but the process was stopped after the CEO name changed in just a month.

A change in the ownership is subject to an additional review for the operating license for an airline business in Korea.

The latest approval was given after rigorous reviews from government task-force team and research experts with legal and accounting advice from outside, according to the ministry.

The company met capital requirements by drawing capital pledges of 200 billion won, up from earlier 165 billion won, and planning to secure a fleet of seven units of B747 aircrafts by 2022.

Air Premia will file for an air operator certificate and outline further funding plan including new stock issues worth 65 billion won. The newcomer is targeting a niche market with a focus on medium- to long-haul flights, positioning itself between full-service and low-cost carriers.

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