Jeju Air, releasing its 2013 business plan, said it plans to "reinforce the fundamentals for sustainable growth" in 2013, according to a Joongang report. The LCC, controlled by Aekyung Group, added: “We will focus on our core abilities, polish our brand image and upgrade our competitiveness to become a global airline.” The airline said it hopes to reach KRW480 billion (USD439 million) in sales for 2013, a 40% year-on-year increase from 2012 estimates, with plans for a KRW17 billion (USD15.5 million) operating profit. To achieve its goal, Jeju Air plans to expand services to China with three or four additional Chinese cities by no later than Mar-2013 operated as irregular services as the two nations have yet to reach a full open skies agreement. The carrier will also expand in Japan and southeast Asia, with the addition of two additional aircraft in 2013. It aims to serve 4.95 million passengers in 2013, up from 3.82 million in 2012.
Jeju Air aiming for USD16m operating profit in 2013 as focus turns to sustainable growth
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LCC CEOs to lead discussions at CAPA North Asia LCC Summit, Tokyo, Jun-7/8-2016
Leaders of North Asia’s low cost carriers (LCCs) will gather in Narita on Jun-7/8 for CAPA’s North Asia LCC Summit.
Hosted by Narita Airport, the Summit marks 12 years of CAPA’s flagship series of LCC events in Asia and marks CAPA’s second return to Japan.
Featuring over 40 speakers, including senior executives from all of North Asia's LCCs, and with simultaneous translation in English, Japanese, Korean and Mandarin, the Summit will explore the commercial drivers for LCC growth in this region, as the market opens.
North Asia has yet to experience the rapid expansion of LCCs that has occurred in Southeast Asia - but that is changing quickly.
Korea's Eastar Jet LCC joins U-FLY LCC alliance to strengthen position in China and Southeast Asia
Korean LCC Eastar Jet has become the fifth member of the U-FLY LCC Alliance, established in Jan-2016. Eastar Jet also becomes the first member not affiliated with the HNA Group or based in Greater China. Eastar Jet's membership comes after its larger competitor Jeju Air became a founding member of the competing LCC Value Alliance in May-2016.
For now both alliances are more like commercial partnerships, where new technology (Air Black Box, compatible with IATA's New Distribution Capability) enables the member airlines to cross-sell not just seats, but also the critical components of varied ancillary revenue. Both alliances have small costs – and thus low risk – while the U-FLY Alliance is unique in being a platform for the ever-expansive HNA Group to foster synergies among companies.
Although it is Korea's smallest major LCC, Eastar Jet has the largest LCC operation into mainland China. Eastar expects to benefit from potential cooperation through U-FLY; it will allow it to reach more inland and western Chinese points that are too far or thin for its network, but are where U-FLY's three mainland members are based.