Loading

Jeju Air is Northeast Asia's largest LCC outside China; opening a Busan base to continue growth

Premium Analysis

Jeju Air continues to hold its place as Korea's largest LCC, and the largest LCC in Northeast Asia outside mainland China. Although service to its namesake island of Jeju continues to define its domestic network, internationally Jeju Air has long been expanding outside the geography of its brand. Seoul has been Jeju Air's main focus, and in 2016 Jeju Air is building up in Busan. Jeju Air CEO Ken Choi remarked at CAPA's Asia Aviation Summit that Jeju Air is targeting 20% of Korea's second largest city, which the airline believes is not being well served by Asiana's LCC Air Busan. Early moves are critical: Busan is running out of slots.

Jeju Air has an all-737 fleet of 25 aircraft and expects to add two more around the end of 2016. In 2017 Jeju Air will adopt the technology for the Value Alliance of which it is a member. Mr Choi hopes to see the alliance expand in mainland China, Vietnam, Hong Kong and Indonesia.

Consolidation among Korean LCCs is still as necessary as it is unlikely. Open skies with China is another contentious matter for Korea, with full service airlines opposed to it, whereas LCCs support the development.

Become a CAPA Member to access Analysis Reports

This CAPA Premium Analysis Report is 1,357 words.
Become a CAPA Member

Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.

Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.

CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.