Boeing and Korean Air have announced the airline’s intent to purchase 103 of Boeing’s family of aircraft to modernise its fleet and support the carrier’s growth.
Korean Air’s commitment will be the airline’s largest-ever order and Boeing’s largest widebody order from an Asian carrier.
As announced, this is an intent to purchase, rather than a firm order. When this order is finalised, the deal will mark Korean Air’s first order for the 777-8F.
The agreement was signed during the Korea-U.S. Business Roundtable “Partnership for a Manufacturing Renaissance,” and presided over by Howard Lutnick, U.S. Secretary of Commerce and Kim Jung-kwan, South Korea’s Minister of Trade, Industry and Energy (MOTIE), with the order witnessed by Walter Cho, Chairman and CEO of Korean Air and Hanjin Group; Stephanie Pope, President and CEO of Boeing Commercial Airplanes; and Russell Stokes, President and CEO of Commercial Engines & Services at GE Aerospace.
The order will be posted to Boeing’s Orders & Deliveries website once it is completed and includes:
- 20 Boeing 777-9s
- 25 Boeing 787-10s
- 50 Boeing 737-10s
- 8 Boeing 777-8 Freighters
Korean Air will also add 19 spare engines to its inventory (with 11 spare engines from GE Aerospace and eight from CFM International), along with a service agreement with GE for 28 aircraft engines over 20 years.
Korean Air’s orders and commitments for Boeing aircraft in 2025 surpass 150 units, following the airline’s incremental order in March for 20 777-9s and 20 787-10s. The airline currently operates 108 Boeing aircraft, including 737s, 747s, 777s and 787s.
Korean Air’s fleet strategy will standardise its long-term operations around five aircraft families: the Boeing 777, 787 and 737, along with the Airbus A350 and A321neo.
With 72 Boeing jets on order, Korean Air’s order book will grow to 175 aircraft once the deal is finalised.
The aircraft are scheduled for phased delivery through the end of 2030.
In Quotes
Walter Cho, chairman and CEO of Korean Air, said:
“This agreement with our long-standing partners, Boeing and GE, marks a pivotal moment for Korean Air,”
“Acquiring these next-generation aircraft is the core of our fleet modernization strategy, delivering significant gains in fuel efficiency and enhancing the passenger experience across our global network. This investment is also a critical enabler for our future as a merged airline with Asiana, to ensure that our combined carrier is one of the most competitive airlines in the industry.”
Stephanie Pope, president and CEO of Boeing Commercial Aeroplanes, added:
“We are honored to strengthen our partnership with Korean Air through this landmark agreement, which reflects the value and capabilities of Boeing’s market-leading airplane family,”
“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.”
A nice announcement. It’ll make a better order.
Announcements and intentions are a wonderful thing. They make for a nice press release, an announcement at a trade event, or when heads of state want to pat themselves on the back for boosting their economies.
However, an agreement like this – a letter of intent – is just that. It’s the first step in the path that will hopefully turn into the thing that Boeing will be looking for – a firm order.
And firm orders, with agreed payment terms, ensure suppliers get paid, and profits can be booked into spreadsheets to please shareholders.
Along with the eventual delivery of aircraft. That would be convenient too.
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That’s the plane, anyway.