Jeju Air, Commercialization Agreement... Advancement of Air Logistics

[Asia Economy Reporter Yoo Hyun-seok] Jeju Air announced on the 19th that it is taking a step closer to advancing air cargo logistics by signing an agreement on the Authorized Economic Operator (AEO) system, following its introduction of cargo aircraft for the first time among domestic low-cost carriers (LCCs).

On the 16th, Jeju Air signed a business agreement with Seoul Air Cargo regarding the operation of the AEO system. The AEO system allows cargo that has completed its own security inspection by a shipper meeting legal standards to skip security checks at airports and other facilities.

A Jeju Air official stated, “ICAO, the Ministry of Land, Infrastructure and Transport, and Incheon International Airport also recommend adopting the AEO system to maintain speed and security,” adding, “This business agreement lays the foundation for Jeju Air’s cargo business to take a leap forward.”

Jeju Air introduced cargo aircraft for the first time among domestic LCCs in June and expanded its routes from Incheon to Hanoi, Tokyo (Narita), and Yantai, transporting a total of 5,772 tons over six months. This is more than five times the 1,126 tons transported during the same period last year using passenger aircraft dedicated to cargo transport.

The monthly cargo volume has been increasing, from 242 tons in June, the first month of cargo aircraft operation, to 1,482 tons last month, more than six times higher. The B737-800BCF cargo aircraft operated by Jeju Air is a small cargo plane, which has the advantage of more frequent and faster transport compared to large cargo aircraft.

A Jeju Air official said, “Cargo transport via passenger aircraft involves different major cargo markets and routes, and there are many restrictions on items that can be transported when passengers are on board,” adding, “Jeju Air, which owns dedicated cargo aircraft, has secured a favorable position in the short-distance cargo market.”

This content was produced with the assistance of AI translation services.