Bombardier Aerospace announced today that Jeju Air of South Korea has placed a firm order for five 74-seat Bombardier Q400 airliners and taken options on three additional aircraft. Jeju Air is Bombardier Aerospace's first South Korean regional airline customer.
The firm order contract is valued at approximately $120 million US and could rise to $196 million US if the options are converted to firm orders.
Jeju Air was formed in January, 2005 by the Aekyung Group and the Jeju Provincial Government to provide low-fare air services between Jeju Island, a popular vacation destination, and the South Korean mainland. Jeju Air has indicated that it will initially link Jeju Island with Seoul-Gimpo, Busan, Daegu and Cheongju. The airline plans to begin operations in time for the peak summer travel season in 2006.
"We evaluated several turboprop and jet aircraft and selected the Bombardier Q400 because it is the most economical and comfortable turboprop aircraft in the world making it the most ideal aircraft for our operation," said Sang Kil Joo, President, Jeju Air. "The competitively low operating costs will enable us to be a domestic airline, and we plan to price our airfares 30 per cent lower than the competition."
"This is a landmark order for us," said Steven Ridolfi, President, Bombardier Regional Aircraft. "The Bombardier Q400 will be the first regional aircraft in South Korea where there is a growing requirement for such aircraft for both business and tourist travel. Jeju Air will be able to take full advantage of the Bombardier Q400 aircraft's outstanding economics and passenger comfort and, offer its passengers a superb air service.
"The Bombardier Q400 has the lowest operating costs of any regional aircraft and is leading the revival of the interest in turboprops," added Mr. Ridolfi.
The Jeju Air transaction increases to 147 the number of firm orders for the 68- to 78-passenger Bombardier Q400 aircraft.
A world-leading manufacturer of innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment, Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the fiscal year ended Jan. 31, 2005, were $15.8 billion US and its shares are traded on the Toronto Stock Exchange (BBD). News and information are available at www.bombardier.com.
Bombardier and Q400 are trademarks of Bombardier Inc. or its subsidiaries.