SEOUL — On November 20, 2018, Jeju Air Co Ltd, South Korea’s largest low-cost carrier, said it had bought 40 Boeing 737 Max 8 aircraft in a deal valued at $4.4 billion.
The airline said the agreement is the biggest contract by a South Korean carrier in terms of a single aircraft type. It also includes an option to add 10 more planes, which would expand the order further if exercised.
Jeju Air said the aircraft are due for delivery between 2022 and 2026. The company added that the new jets would support its cost competitiveness and help it continue growing as a leading carrier.
Reuters had reported earlier in the month that Jeju Air was in discussions with Boeing and Airbus about buying 50 jets as part of a wider expansion plan. The airline’s network includes one of the world’s busiest routes.
The order comes as South Korea’s budget airline market continues to expand. According to the transport ministry, six South Korean low-cost carriers saw international passenger numbers rise to 20.3 million in 2017 from 4.9 million in 2013.
Jeju Air said it currently operates 58 routes with 38 Boeing 737-700 aircraft.
Reporting by Heekyong Yang; Editing by Amrutha Gayathri and Sherry Jacob-Phillips.
