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Jeju Air is the first low-cost Korean airline, based in Jeju City, Jeju-do in South Korea.
Jeju Air offers scheduled domestic services between Jeju island, outside of Korea and Seoul. Jeju Air was established in 2005 and in 2016, merged with Value Alliance which is known as the world’s first Low Cost Carrier alliance. The alliance comprises of 8 Asia Pacific orgnisations which include, Jeju air, Nok, NokScoot, Cebu Pacific, Scoot, Tigerair Singapore, Vanilla Air and Tigerair Australia.
In December 2016, Jeju Air acquired a Boeing 737-800 which was formerly operated by Ryanair. It was seen arriving at Dublin from Bournemouth where it was painted into the Jeju Air livery. The aircraft was delivered to South Korea in January 2017.
Jeju Air plans to expand its aircraft fleet of Boeing 737-800s to about 40 by 2019. The airline acquired 26 by the end of 2016 and planned to add 5 aircraft to its existing fleet, annually, over the next 3 years.
China (Beijing; Shijazhuang)
Japan (Chubu; Narita)
23rd August 2017
Jeju Air to benefit from Koreans' changing lifestyle
Jeju Air Co Ltd expects record quarterly profit in July to September, as changing lifestyles at home in South Korea translates into demand that more than makes up for China again rejecting its monthly application to provide charter flights.
South Korea’s biggest low-cost carrier (LCC) by market share is benefiting as more Koreans travel overseas spurred by lower fares, and increasingly spend on small luxuries in a departure from a past focus on savings, Chief Financial Officer Kim Tae-yoon told Reuters.
But the airline, like its peers, is still hamstrung in China, where authorities declined Jeju’s request to offer charter flights in August to and from the country - the latest in a series of rejections stretching back to January.
The initial rejections came after Seoul’s decision to deploy a US missile defence system to counter any potential threat from North Korea. Beijing objected that the system’s radar was capable of penetrating Chinese territory.
Ensuing anti-Korean sentiment involved protests and boycotts of Korean goods and services. Chinese tour groups to South Korea were also halted, as were charter flights.
“There are no signs that China will approve the resumption of charter flights,” Kim said in an interview. ”Nevertheless, we are preparing to resume flights whenever they are approved.”
Jeju generated only a small portion of revenue from Chinese charter flights. It has since redeployed aircraft to Japan and Southeast Asia and, in April-June, saw operating profit jump 24-fold to 16.2 billion won (US$14.23mil).
Restructuring Jeju operates 29 Boeing Co 737-800s. It plans to expand its fleet to 33 by year-end and add six to eight aircraft each year to reach 50 in 2020, Kim said, with all planes being 737-800s to achieve economies of scale and help keep costs low.
He said Jeju’s expansion will accelerate consolidation in South Korea’s low-cost carrier sector, which he expects to reach saturation point after two or three years.
“I think there are too many LCCs in South Korea,” he said.
South Korean has six low-cost carriers and two firms aiming to begin flights early next year. Kim expects the sector to eventually settle with two or three carriers.
“Now, everyone is holding up well, but when the market deteriorates, only airlines with cost-competitiveness like us will survive,” he said.
One of Jeju’s competitors is Jin Air, affiliate of the country’s biggest carrier, Korean Air Lines Co Ltd.
Jin Air plans to list on the stock market and use listing proceeds to fund investment for growth, such as buying aircraft.
17th July 2017
Jeju Air Co., South Korea's leading budget carrier, has obtained approval from the Chinese authorities to fly two chartered flights to the neighboring country next week.
Two chartered flights are scheduled to deliver a combined 360 passengers to the famous tourism site of Zhangjiajie in the southeastern part of China from Cheongju, she said. The flights will take place on July 25 and 29.
But the company and the transport ministry remained cautious, saying the "one-time" approval does not necessarily mean Beijing will lift the ban on package travel to South Korea.
China has explicitly opposed the deployment of the Terminal High Altitude Area Defense system, arguing the powerful X-band radar that comes with it could spy on its military.
In July of last year, Seoul and Washington announced a decision to install the US anti-missile system in South Korea to better defend against North Korea's nuclear and missile threats.
In an apparent retaliation against the move, China has banned the sale of travel packages to South Korea since March 15.
Jeju Air is one of the country's six budget carriers. The five others are Jin Air, Air Busan Co., Air Seoul Inc., Eastar Jet and T'way Air Co.
11th May 2017
Jeju Air during the month of June 2017 plans to increase Seoul Incheon – Osaka Kansai flight, offering up to 5 x daily flights on selected days.
Overall frequency from 01JUN17 to 29JUN17 will be 28 to 32 weekly.
11th April 2017
Jeju Air plans to increase Busan – Taipei Taoyuan service during May and June 2017 where it plans to offer extra 2 weekly flights. From 02MAY17 to 27JUN17, Jeju Air will operate 9 x weekly flights, with new daytime service on Tuesdays and Saturdays.
Jeju Air has a fleet size of 28 aircraft comprising of:
28 Boeing 737-800
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