South Korea’s Jeju Air is ordering up to fifty 737 MAX 8 airplanes from Boeing, the largest order ever placed by a Korean low-cost carrier (LCC).
In a news release, Boeing said Jeju Air is placing a firm order for forty 737 MAX 8 airplanes with options for 10 additional jets. The deal has a value of up to US$5.9 billion at list prices and reflects rising demand for air travel in South Korea, the airplane builder said.
Reports said the carrier’s board passed a resolution November 20 approving the order, with the aircraft expected to be delivered between 2022 and 2026.
Seok-Joo Lee, president and CEO of Jeju Air, said, “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, 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, Jeju Air has steadily expanded its business and its profits. The airline has achieved 25% annual sales growth over the past five years and recorded 17 consecutive quarters of profitability.
Jeju Air is looking to build on its success with the enhanced version of the 737 jet. The 737 MAX 8 provides more range and offers 14% better fuel efficiency and environmental performance, thanks to the latest CFM International LEAP-1B engines, advanced technology winglets, and other aerodynamic improvements.
Along with the new airplanes, Boeing Global Services will provide Jeju Air with digital tools to reduce its operating costs. The solutions include the fuel dashboard program, which allows operators to look across their fleet and identify areas where they can optimize their fuel spending.
Jeju Air serves 60 domestic and international routes with some 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.
The 737 MAX is the fastest selling airplane in Boeing history, accumulating about 4,800 orders from more than 100 customers worldwide.
Photo source: Boeing
