Lee Hyo-sik is Finance Desk editor at The Korea Times. He manages finance-related stories on macroeconomics, banks, stocks, bonds, crypto etc. He is passionate about covering what's happening in Korea's financial industry and explaining it to both Korean and non-Korean readers. You can reach him at leehs@koreatimes.co.kr. Your insights and feedbacks are always appreciated.
Has Jeju Air grown too fast?
Safety lapses, inadequate training plague Korea’s largest LCC
By Lee Hyo-sik
Jeju Air CEO Choi Kyu-nam
By Lee Hyo-sik
Jeju Air, Korea’s largest low-cost carrier (LCC), has been plagued by safety lapses in recent months, inconveniencing thousands of customers.
The budget carrier, founded in 2005, has been mobilizing resources to expand routes and attract as many travelers as possible to catch up with the country’s two flagship carriers ― Korean Air and Asiana Airlines.
However, the company has been paying less attention to strengthening the operational safety of its fleet and the training of pilots and other crew members, industry analysts said Wednesday.
They caution that if Jeju Air, headed by CEO Choi Kyu-nam, continues to increase the number of routes as it has by operating its aging airplanes excessively, it will likely be involved in more serious incidents, which could result in casualties.
On Dec. 23, a Jeju Air’s Boeing 737-800 bound for Jeju International Airport from Seoul suddenly nosedived, sending 152 passengers into panic, with dozens sustaining injuries. The plane plunged 3,000 meters in seconds.
Initially, the malfunctioning of the self-pressurized system was believed to be the cause of the sudden plunge. But after an initial inspection of the plane, the Ministry of Land, Infrastructure and Transport said inspectors found no mechanical problem, suspecting pilot error was behind this latest incident.
“If pilot error is confirmed to be the cause of the incident, then Jeju Air has failed to adequately train its aviators,” said an airline industry official, who declined to be named. “Pilots, maintenance crews and other personnel at Jeju Air are overworked to keep up with the firm’s busy flight schedules. Everything has been stretched thin. Other budget carriers face the same problem.”
Jeju Air operates a fleet of 22 Boeing 737-800s, flying to 26 destinations in China, Japan and other Asian countries. It also runs four domestic routes.
The company has been adding four to five routes a year and hiring dozens of pilots to maintain its rapidly expanding operation.
Besides pilot errors, the carrier’s aging planes are said to have caused numerous flight delays and cancellations.
The plane involved in the Dec. 23 incident was made in 2008. Worse, 16 other planes were produced before 2008, with two made in 1999.
“Jeju’s aging fleet has been causing a wide range of incidents over the past few years,” the official said. “The carrier knows that it needs to add new planes to its fleet. But it costs more to do so. If it cannot afford to lease new planes, it instead has to beef up its safety inspections. This could make fewer planes available for operation.”
On Dec. 20, a Jeju Air flight bound for Busan from Guam was delayed for 15 hours because of defective parts, while a plane bound for Incheon from Bangkok had to return to Thailand after two hours in the air on Dec. 5 due to a part flaw.
In addition, Jeju Air is widely expected to face stiff competition from Air Seoul, Asiana Airlines’ second budget carrier, which will begin operations in June.
Air Seoul, which will operate on Asiana’s short-distance routes connecting with destinations in China, Japan and Southeast Asian countries, will likely turn Korea’s highly competitive LCC market even more aggressive. The budget carrier will likely bite into the bottom line of Jeju Air and four other LCCs.
“Korea’s LCC market has been growing rapidly over the past few years and I think there is still room for growth for everyone,” the official said. “However, when the number of travelers reaches its peak in two or three years, then the real fight will begin among budget carriers. The presence of Air Seoul, fully backed by Asiana Airlines, is certainly not good news for Jeju and other carriers.”