Jeju Air orders 40 737 MAX 8s
The South Korean budget airline, Jeju Air, has ordered 40 of Boeing’s 737 MAX 8 series of aircraft. The deal made by Jeju and Boeing is valued at $4.68 billion USD. The airline had plans to buy 50 of the aircraft but choose to buy 40. The option to order 10 more of the planes is still available in the contract.
This is a major step in the airline’s growth plan as they are currently operating 38 of Boeing’s 737-700 aircraft on 58 routes. This deal is intended to help in growing Jeju’s network of routes, some being of the busiest in the world.
South Korea has seen major growth on their international routes with passenger numbers throughout the country. According to South Korea’s transport ministry, South Korean budget airlines have had over four times the number of passengers since 2013. In 2013, there were close to five million passengers flying internationally in and out of South Korean cities. In 2017, there were over twenty million passengers flying these routes. If this growth continues, Jeju Airlines could have incredible
Lee Seok-Joo, Jeje’s CEO has said in a statement
“With Korea’s growing commercial aviation market, we are excited to take the next step in expanding our business with the 737 MAX,”
The Airline added
“The order of Boeing 737 Max planes will help the company maintain its cost competitiveness, fuelling us to grow as a leading carrier,”
Boeing has said that this order is the largest order for their aircraft in South Korean low-cost carrier history.
The Aircraft are set to arrive to Jeju between 2022 to 2026. The airline’s next step with the new aircraft is to begin flying routes out of Asia and into new destinations now available.