Twenty 777s are in the deal, as well as Dreamliners and eight freighters, according to Korean Air. Photo / Jennifer Buchanan, AFP
Twenty 777s are in the deal, as well as Dreamliners and eight freighters, according to Korean Air. Photo / Jennifer Buchanan, AFP
Korean Air says it will buy more than 100 Boeing aircraft in South Korea’s biggest-ever aviation deal, just hours after the country’s President met US President Donald Trump in Washington.
“Korean Air announced its intent to purchase 103 next-generation aircraft from Boeing,” the company said in a statement.
The companysaid the purchase, which also includes spare engines from GE Aerospace, was valued at approximately US$50 billion ($85b).
The aircraft are scheduled for phased delivery until the end of 2030.
The order included 20 widebody twinjet 777-9s, 25 787-10 Dreamliners, 50 narrow-body 737-10s and eight 777-8F freighters, the Seoul-based carrier added.
The agreement was signed in Washington earlier this week during a meeting of Korean and US businesses, overseen by Commerce Secretary Howard Lutnick and South Korea’s Ministry of Trade, Industry and Energy.
Trump on the same day held his first meeting with South Korean President Lee Jae-myung to discuss bilateral relations, just weeks after both countries agreed to trade deals involving announcements of huge investments into the United States.
Boeing said Korean Air’s commitment was the airline’s largest-ever order and Boeing’s largest widebody order from an Asian carrier.
“When finalised, the deal will mark Korean Air’s first order for the 777-8F and will support an estimated 135,000 jobs across the United States,” the manufacturer said.
“This agreement with our long-standing partners, Boeing and GE, marks a pivotal moment for Korean Air,” said Walter Cho, Korean Air chief executive and chairman.
“Acquiring these next-generation aircraft is the core of our fleet modernisation strategy, delivering significant gains in fuel efficiency and enhancing the passenger experience across our global network,” he added.
Cho said the investment was critical for his company’s future as a merged airline with fellow Korean airline Asiana.
He said he wanted the combined carrier to be one of the most competitive airlines in the industry.
Korean Air had agreed in March to purchase up to 50 Boeing aircraft, a deal valued at around $54.6b, which also involved GE Aerospace.
A Boeing 777 production assembly line near Seattle, Washington. Photo / Brett Phibbs
Boeing has been hit by manufacturing backlogs and safety concerns.
A total of 241 people on board the London-bound Boeing 787 Dreamliner were killed when the plane crashed shortly after take-off from Ahmedabad in northwestern India on June 12.
A preliminary investigation report by India’s Aircraft Accident Investigation Bureau said fuel to the jet’s engines was cut off moments before impact.
