Industry Jeju Air orders up to 50 Boeing 737 MAX

According to current list prices, the deal is valued at up to US$5.9 billion. The order represents the largest order ever placed by a Korean low-cost carrier. Jeju Air underlines its growth ambitions with the new order. Moreover, it shows the high potential and rising demand for air travel in South Korea.

Jeju Air currently operates 39 Boeing 737-800 Next Gen. aircraft and hopes to enhance its fleet with the new MAX aircraft. The carrier reported 25 percent annual sales growth over the past five years and hopes to furthermore strengthen its profitability.

Seok-Joo Lee, President and CEO of Jeju Air said: "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."

"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," added Ihssane Mounir, senior vice president of Commercial Sales & Marketing for The Boeing Company.

In addition to the new aircraft, Boeing Global Services will provide Jeju Air with tools that are set to reduce their operating costs. The tools includes a Fuel Dashboard Program, which allows Jeju Air to identify areas where they can apply fuel spending measures.

As low-cost carrier, Jeju Air operates a fleet with one aircraft type, the Boeing 737-800. This allows the airline to reduce maintenance costs and to operate more efficiently. The carrier commenced operations back in 2005 as South Korea´s first low-cost airline.

Boeing´s 737 MAX 8 offers more range and a 14 percent improved fuel efficiency, which leads to better environmental performance. The aircraft are powered by CFM International LEAP-1B engines and are capable of flying 3,515 nautical miles (6,510 km).

The MAX Family, consisting of the 737 MAX 7, MAX 8 (+MAX 200), MAX 9 and MAX 10 has achieved about 4,800 orders from over 100 worldwide customers.