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Korean Air inks record $50b US aviation deal
By No
Kyung-min, The Korea Herald - Korean Air, South Korea’s flagship carrier, on
Tuesday announced a sweeping $50 billion deal to purchase next-generation
aircraft from Boeing and spare engines from GE Aerospace and CFM International,
its largest-ever investment aimed at fueling long-term growth.
The deal,
signed during President Lee Jae Myung’s visit to Washington, includes $36.2
billion for 103 Boeing aircraft, $690 million for 19 spare engines, and a $13
billion long-term engine maintenance contract.
Attending the
signing ceremony in Washington were Walter Cho, chair and CEO of Korean Air and
Hanjin Group; Stephanie Pope, CEO of Boeing Commercial Airplanes and Russell
Stokes, CEO of Commercial Engines & Services at GE Aerospace.
The fleet
order spans a wide mix of models: 20 Boeing 777-9s, 25 Boeing 787-10s, 50
Boeing 737-10s, and eight Boeing 777-8F freighters. Deliveries will be phased
through the end of the 2030s.
Korean Air
will also acquire 11 spare engines from GE Aerospace and eight from CFM
International, alongside a 20-year maintenance service agreement with GE
covering 28 aircraft.
The deal
represents a strategic effort to reinforce ties with the US aviation industry
and a proactive step toward sustained growth following Korean Air’s merger with
Asiana Airlines.
“Through proactive, large-scale
investments in aircraft, we aim to secure future growth momentum and deepen the
mutually beneficial partnership between Korea and the United States,” the
company said in a statement. “This strategic investment in the US market will
enhance our operational capabilities and global competitiveness.”
The company
added that, with major carriers pulling forward aircraft orders in the wake of
the pandemic, the deal serves as a proactive step aligned with its long-term
fleet strategy.
It would allow
Korean Air to streamline its fleet around five high-efficiency aircraft
families: the Boeing 777, 787 and 737, along with the Airbus A350 and A321neo.
The shift is
expected to ensure stable capacity growth, generate economies of scale through
fleet simplification, improve fuel efficiency, lower carbon emissions and
enhance the overall customer experience, the company explained.
Korean Air
opened its first US cargo route to Los Angeles via Tokyo in April 1971, and a
year later launched its first passenger service to the city via Tokyo and
Honolulu.
That legacy of
cooperation continues today through the airline’s trans-Pacific joint venture
with Delta Air Lines. Korean Air currently collaborates closely with a broad
range of US-based aviation companies, including Pratt & Whitney, General
Electric, Hamilton Sundstrand and Honeywell.
