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Boeing wins $363 mln order from S.Korea airline
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Boeing Co has won a $363 million order for five B737-800 planes from Jeju Air Co Ltd, the South Korean budget airline said on Tuesday.
The airline also said it will lease an additional 10 aircraft by 2013 for an undisclosed sum.
"We decided to use B737-800, which is currently the most popular model out of the B737 series, to expand our international routes and transportation capacity," said Ko Young-sub, Jeju Airīs chief executive, said in a statement.
With the deal, which was signed late on Monday, the unlisted carrier will receive service support, including education and technology, from Boeing starting from April.
Jeju Air currently has a fleet of four planes bought from Canadaīs Bombardier Inc.
Jeju Air plans to begin its first international route, pending government approval, after June 5, when it marks its second anniversary.
South Koreaīs airline industry is facing deepening competition from a new breed of low-cost carriers.
Korean Air announced in November that it was setting up a budget airline unit in 2008.
(Reporting by Mee Hyoe Koo; Editing by Sei Chong and Kim Yeon-hee)
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