Boeing and Jeju Air have announced the airline is ordering 40 737 MAX 8 airliners with options for ten additional jets. The deal, valued at up to $5.9 billion at list prices, is the largest order ever placed by a Korean low-cost carrier and reflects rising demand for air travel in South Korea.
Jeju Air, based in South Korea’s Jeju Island, began operation in 2005 as the country’s first low-cost carrier. Flying a fleet of nearly 40 Next-Generation 737-800s, the airline has steadily expanded its business and its profits having achieved 25% annual sales growth over the past five years and recorded 17 consecutive quarters of profitability. It serves 60 domestic and international routes with approximately 200 daily flights. The carrier is a founding member of the Value Alliance, the first pan-regional low-cost carrier alliance formed with eight airlines based in Asia.
Seok-Joo Lee, President and CEO of Jeju Air commented: “With Korea’s growing commercial aviation market, we are excited to take the next step in expanding our business with the 737 MAX, a world-class airplane that will allow us to improve our operation and continue to provide a safe and enjoyable experience for our passengers. The 737 MAX 8 and its superior performance and economics make it an ideal airplane to implement our growth strategy as we look to expand beyond Asia in the coming years.”
Along with the new aircraft, Boeing Global Services will provide Jeju Air with digital tools to help reduce their operating costs. The solutions include the Fuel Dashboard Program, which allows operators to look across their fleet and identify areas where they can optimise their fuel spending.