South Korea startup Air Premia orders Boeing 787s with California in mind
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
Air Premia, a new South Korean airline that plans to start service next year, has reached a deal to purchase five Boeing 787-9 Dreamliners. That order follows a deal Air Premia reached earlier this year to lease three 787s from Air Lease Corporation.
The airline hopes to begin flying in 2020, operating a base at Seoul Incheon (ICN). Initially, Air Premia expects to fly regional routes within Asia. But Air Premia already has U.S. destinations on its radar, saying it hopes to begin flying from South Korea to both Los Angeles and San Jose in California “by 2021.”
“We are honored to welcome Air Premia as Boeing’s newest customer. As new entrants in Asia continue to launch innovative business models and strategies for growth, we are excited that Air Premia have selected the 787-9 Dreamliner to power their future fleet,” Ihssane Mounir, senior vice president of commercial sales and marketing at Boeing, said in a statement. “The super-efficient 787-9 is a perfect fit for this new hybrid airline.”
The tentative commitment carries a list value of $1.4 billion, though airlines typically receive steeps discounts.
Air Premia has not yet specified how it might outfit its 787-9s, which Boeing notes can seat 296 passengers in a “standard” configuration. The aircraft has a range of about 8,400 miles.
“This is an exciting decision for Air Premia as we look to deliver a world-class experience to our customers, while also operating the most fuel efficient fleet,” Air Premia CEO Peter Sim added in the statement. “With the 787-9’s superior fuel efficiency and range capabilities, this investment fits perfectly with our unique business model and will position Air Premia for sustainable long-term growth.”
Though it’s unclear what the competitive landscape might look like by the time Air Premia begins U.S. service, there are currently two carriers — Korean Air and Asiana —that fly nonstop between Seoul and Los Angeles. No airlines currently fly nonstop between San Jose and Seoul.
Featured image courtesy of Boeing.
Welcome to The Points Guy!
WELCOME OFFER: 80,000 Points
TPG'S BONUS VALUATION*: $1,600
CARD HIGHLIGHTS: 3X points on dining and 2x points on travel, points transferrable to over a dozen travel partners
*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.
- Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 when you redeem through Chase Ultimate Rewards®.
- Enjoy benefits such as a $50 annual Ultimate Rewards Hotel Credit, 5x on travel purchased through Chase Ultimate Rewards®, 3x on dining and 2x on all other travel purchases, plus more.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 80,000 points are worth $1,000 toward travel.
- With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.