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Photo = Yonhap news |
[Alpha Biz= Kim Sangjin] Jeju Air, the low-cost airline (LCC) that operated the aircraft involved in the accident at Muan Airport, was founded in 2005 as a joint venture between Jeju Special Self-Governing Province and the AK Group. The airline is regarded as a leader among domestic LCCs in terms of flight frequency, passenger numbers, and size.
Jeju Air received its domestic and international regular transportation license in August 2005, and in June 2006, it launched its first flight on the Jeju-Gimpo route. In March 2009, the airline expanded its services to international routes, starting with the Incheon-Osaka route, marking the first international route launch by a domestic LCC.
In 2015, just 11 years after its establishment, Jeju Air made a significant move by listing on the Korea Securities Exchange. This was notable as the airline became the first domestic LCC to go public and the first airline to list since Asiana Airlines in 1999.
Jeju Air faced significant challenges due to the COVID-19 pandemic, recording operating losses for three consecutive years through 2022. However, with the end of the pandemic and the recovery to endemic status, the airline saw a strong recovery, posting its highest-ever revenue and operating profit last year. In 2023, Jeju Air recorded sales of 1.724 trillion won and operating profit of 169.8 billion won. The revenue increased by 25% compared to pre-pandemic 2019 (1.384 trillion won), while the operating profit grew 68% over the previous record set in 2017 (101.3 billion won).
As of January 2024, Jeju Air operates the largest fleet among domestic LCCs with 42 aircraft, serving over 50 cities and more than 85 routes. Last year, 12.3 million passengers used Jeju Air, with an average of 217.5 flights per day.
As of the end of 2023, the ownership structure of Jeju Air is as follows: AK Holdings, the holding company of the AK Group, holds 50.37% of the shares, making it the largest shareholder, followed by the National Pension Service, which holds 7.84%. Other shareholders include AK Asset Management (3.22%) and Jeju Special Self-Governing Province (3.18%).
Before the Muan Airport incident, Jeju Air had not experienced any major accidents involving fatalities. In 2007, a Jeju to Busan flight carrying 79 people went off the runway at Gimhae Airport during landing, but there were no casualties. In 2013, a flight from Jeju to Gimpo, carrying 193 people, also veered off the runway at Gimpo Airport with no injuries. In 2022, a Jeju Air flight from Osaka to Gimpo was forced to return due to a bird strike shortly after takeoff, but again, no injuries were reported.
On the 29th, Jeju Air flight 7C 2216, a Boeing 737-800 flying from Bangkok to Muan with 175 passengers and 6 crew members on board, attempted to land at Muan Airport around 9:03 AM. The aircraft collided with an airport facility on the runway, resulting in severe damage and a fire. Most of the passengers were returning from Thailand as part of a local travel agency's package deal, and the aircraft was reportedly a chartered flight associated with this agency.
The AK Group and Jeju Air have sent staff to the scene to form a support team and are focusing all efforts on managing the aftermath of the incident.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
