Jeju Air SWOT: Korea’s largest LCC must preserve its strengths

Jeju Air is at an inflexion point. Korea's largest, most successful and profitable LCC now has as CEO Seok-Joo Lee, who was promoted from Director, VP and Head Commercial. He replaces the smart leadership of Kyu-Nam (Ken) Choi, who stabilised the airline, pursued growth and achieved a successful IPO. Mr Choi is leaving to work in digital businesses.

New management often means a company embarks on a new strategy. Long haul widebody operations are in vogue, but Jeju Air is strongly cautioned not to pursue such growth. The market is not ready, and Jeju Air's existing short haul business has demonstrated success. There are more opportunities with the existing production platform.

The threat of new entrants provides little room for risky deviation.