Boeing has announced that Jeju Air is ordering
40 737 MAX 8 airplanes with options for 10 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 the ever continued demand for air travel in
South Korea. The country is home to the busiest air route in the
world, Seoul - Jeju.
"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
Seok-Joo Lee, President and CEO of Jeju Air. "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. Since that time, the carrier has spearheaded the rapid
development of Korea's LCC market and contributed to the expansion
of the broader Korean commercial aviation industry.
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.
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.
"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 that the airline has
chosen to build their future fleet with this major order for the
737 MAX," said Ihssane Mounir, senior vice president of Commercial
Sales & Marketing for The Boeing Company.
Along with the new
airplanes, Boeing Global Services will provide Jeju Air with
digital tools to 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 optimize
their fuel spending.
Jeju Air 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.