Kim I-bae, CEO of Jeju Air, "Fleet reduction inevitable due to COVID-19... No personnel adjustments"

Kim I-bae, CEO of Jeju Air

[Asia Economy Reporter Dongwoo Lee] Kim I-bae, CEO of Jeju Air, stated that while a reduction in the fleet due to COVID-19 is inevitable, there will be no personnel adjustments.

On the 25th, through Jeju Air's company newsletter, CEO Kim said, "Considering the recovery speed of the market contracted by COVID-19 and the fixed costs associated with maintaining the fleet, we plan to return a significant number of aircraft whose lease periods have expired."

CEO Kim emphasized, "Now is not the time to consider introducing large long-haul aircraft," adding, "We are aiming to strengthen the current business model and expand the business based on our core competitiveness."

He also expressed willingness to review the introduction of the B737 Max for long-haul routes. CEO Kim said, "In the low-cost carrier (LCC) market, we can cover long-haul routes such as Malaysia, Singapore, and Indonesia," and added, "We should also consider expanding the New Class, which is a premium economy seat."

He also voiced concerns about introducing dedicated cargo aircraft.

CEO Kim explained, "Once international passenger flights recover after COVID-19, cargo transport on passenger aircraft will increase, and the cargo profitability will not be the same as it is now," adding, "To fully engage in the cargo business, we would need to own three cargo aircraft, but owning three aircraft carries risks."

CEO Kim said, "Although there were major issues such as receiving government support during the financial crisis caused by COVID-19, it is fortunate that these were resolved without major difficulties," and added, "There is hope starting from the second half of this year."