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Jeju Air orders 50 B737 MAX 8s
November 23rd 2018
South Korean low-cost carrier (LCC), Jeju Air, on Monday announced its order for 40 B737 MAX 8 aircraft, with options for ten jets. Read More » The deal, valued at US$5.9 billion at list prices, is the largest order placed by a South Korean budget carrier. Deliveries will run from 2022 to 2026.
“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,” said Jeju Air president and CEO, Seok-Joo Lee. “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.”
Jeju Air was South Korea’s first LCC. It began operations in 2005 and has a fleet of 38 B737NGs. The carrier has achieved 25% annual sales growth in the past five years and has recorded 17 consecutive quarters of profitability.
In an investor presentation, Jeju Air said it expected the B737 MAX 8 to fly 650nm farther than its current B737NG fleet. The airline also indicated it might convert the 10 MAX 8 options to the larger MAX 10 variant.
“We are extremely proud that Jeju Air has become a leader in the vibrant LCC market by flying the Boeing 737. And we are delighted the airline has chosen to build their future fleet with this major order for the 737 MAX,” said senior vice president of commercial sales and marketing at The Boeing Company, Ihssane Mounir.
Boeing Global Services will provide Jeju Air with digital tools aimed at reducing the airline’s operating costs including the Fuel Dashboard Program.
Jeju Air serves 60 domestic and international routes with approximately 200 daily flights. It is the founding member of the Value Alliance, the first pan-regional LCC alliance formed with eight Asia-based airlines.
