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Korean Air makes airline's biggest-ever Boeing jet order amid Trump-Lee summit
Korean Air has placed a monumental $50 billion order for 103 Boeing aircraft and GE Aerospace engines, coinciding with South Korean President Lee Jae Myung's visit to Washington. This historic deal, the airline's largest ever, includes 787s, 777s, and 737s, bolstering U.S. aerospace exports and supporting Korean Air's expansion to new destinations while integrating operations with Asiana Airlines.
Korean Air announced a $50 billion order on Monday for 103 Boeing airplanes and GE Aerospace engines and servicing coinciding with the visit of South Korean President Lee Jae Myung to Washington.
The order, the largest in the Korean air carrier's history, includes a mix of 787s, 777s and 737 Boeing airplanes worth about $36.5 billion.
Reuters first reported the deal earlier Monday.
Korean Air also announced a separate deal Monday with GE on the purchase and maintenance of engines valued at $13.7 billion.
Many countries negotiating trade deals with the Trump administration have announced or plan to announce significant Boeing airplane orders. Boeing has won a string of major orders in recent months. Korean Air CEO Cho Won-tae, who recently visited one of Boeing's U.S. factories, told Reuters Monday the record-breaking order will help the largest Korean airline expand to more U.S., Latin American and South American destinations. Cho said about half of the new order of 103 planes would be 737 MAX 10 planes and the rest would be a mix of 777-9 and 787 airplanes. About 80% of the new Boeing planes would replace existing airplanes in the fleet. He said the company had faith in Boeing despite prior troubles the planemaker experienced.
The Boeing deal is worth $36.2 billion, South Korea's industry ministry said, in addition to the GE deal. Boeing said the deal would help Korean Air fully integrate operations with Asiana Airlines, a subsidiary of South Korea's largest airline it acquired last year.
"As Korean Air transitions to a larger unified carrier, we are committed to supporting the airline's growth with one of the world's most efficient fleets," said Stephanie Pope, president and CEO of Boeing Commercial Airplanes.
Commerce Secretary Howard Lutnick told Reuters the major Boeing and GE deal would boost U.S. aerospace exports.
"The world recognizes that our aircraft are the most advanced in the world, and this administration is committed to reshoring advanced manufacturing jobs for Americans," Lutnick said.
In March, South Korea's industry ministry said Korean Air said it would soon finalize a $32.7 billion deal for new Boeing and GE engines. Korean Air last year said it would order 20 777-9 and 20 787-10 planes from Boeing, with options for an additional 10 aircraft. The new order is separate from that purchase.
Korean Air, a founding member of the SkyTeam airline alliance, was established in 1969 when state-owned Korean Air Lines was taken over by South Korean conglomerate Hanjin Kal.
Source: EconomicTimes
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