Jeju Air introduces new operating system to cut cost, improve service

By 정주원
  • Published : Feb 5, 2014 - 14:14
  • Updated : Feb 5, 2014 - 14:14

Jeju Air Co., South Korea's largest budget carrier, said Wednesday it has introduced an advanced operating system to more effectively manage its planes and reservations to cut costs and improve customer service.

The airline company, which operates a fleet of 13 B737-800 passenger jets, said it has injected 10 billion won ($9.3 million) into the advanced information technology system since July 2013.

"The system went online as of this month, with Jeju expecting it to improve the company's competitiveness across the board," an official at the firm said.

He pointed out that competitiveness is critical in the low-cost carrier business due to stiff competition with rivals home and abroad. The company did not elaborate on how much money it expects to save with the new operating system, yet predicted it can give it an edge over its competitors.

Besides Jeju, South Korea has four other LCCs vying for greater market share in both domestic and international routes.

The new system permits real-time data to be collected on planes so the company can better track fuel consumption of its fleet depending on routes, as well as matching fuel used with original estimates.

Such data can allow Jeju to determine when it is best to refuel its planes for best possible efficiency. Such timing is important for improving turn-around time for flights, a key to generating revenue in the airline business.

The new operating system can also help the budget carrier save money by better managing maintenance requirements and make it possible for Jeju to order parts in a timely manner that can reduce inventory-related spending, the company said.

Automation can free up personnel so they can be utilized in other areas, it said.

In addition, Jeju said it has upgraded its ticketing system so people will spend less time on reservations. The upgraded comprehensive system will also allow ticket buyers to book hotels and car rentals.

The company reported sales hitting 430 billion won in 2013 and aims to push it up to 530 billion won in the new year. If reached, it will be the first time that sales numbers for a local budget carrier to surpass the 500 billion won mark. (Yonhap News)