Korean Air Secures $50 Billion Deal for Over 100 Boeing Aircraft

Korean Air has finalized a substantial agreement worth $50 billion to purchase over 100 Boeing aircraft, alongside several spare engines and a long-term engine maintenance service. This deal, announced on March 15, 2024, marks a significant commitment to enhancing the airline’s fleet and operational capabilities.

The formal signing of the agreement took place in Washington during a meeting between South Korean President Lee Jae Myung and U.S. President Donald Trump. The deal encompasses $36.2 billion for 103 next-generation Boeing aircraft, including 20 Boeing 777-9s, 25 Boeing 787-10s, 50 Boeing 737-10s, and eight Boeing 777-8F freighters. Additionally, it includes $690 million for 19 spare engines from GE Aerospace and CFM International, as well as $13 billion for a 20-year engine maintenance service contract with GE Aerospace.

Strategic Investment in Aviation

According to a statement from Korean Air, this strategic investment aims to strengthen the airline’s partnership with the U.S. aviation industry. The airline emphasized that the deal will bolster its operational capabilities and global competitiveness. It is expected to foster robust commercial ties that will facilitate sustained growth in the coming years.

The phased delivery of the aircraft is scheduled to commence and continue through to the end of 2030. The signing ceremony was attended by several key figures in the aviation industry, including Walter Cho, Chairman and CEO of Korean Air and Hanjin Group, and Stephanie Pope, President and CEO of Boeing Commercial Airplanes. The presence of Russell Stokes, President and CEO of Commercial Engines & Services at GE Aerospace, further underscores the collaborative nature of this significant agreement.

This deal not only reflects Korean Air’s commitment to modernizing its fleet but also highlights the increasing interdependence between South Korea and the United States in the aviation sector. As global air travel continues to recover post-pandemic, Korean Air’s investment is poised to position the airline favorably in a competitive market.