Korean LCC market: more growth as Jeju Air commits to 737 MAX 8s

Korea's dynamic LCC sector is poised for more rapid growth following a major aircraft order from the market leader Jeju Air. On 19-Nov-2018 Jeju Air announced an order for 40 firm 737 MAX 8s and 10 options, marking the largest ever aircraft deal from a Korean LCC.

Like most other Korean LCCs, Jeju Air has historically favoured older, secondhand aircraft that came with lower operating costs - the MAX's additional range options and more attractive operating economics will need to make up for the significantly higher acquisition cost. Jeju Air is rolling out a fresh slogan, "New Standard, New Plane" to accompany the new arrival.

Korea now has eight LCCs and one of the highest LCC penetration rates in Asia Pacific. With Jeju Air using the MAX to pursue more growth and fly further, South Korea's international LCC penetration rate will likely exceed 40%.