Korean Air, South Korea’s national airline, has announced its intent to purchase 103 aircraft from Boeing, 19 aircraft engines from GE Aerospace and CFM International, and an engine maintenance programme from GE Aerospace. The total investment is valued at approximately 70 trillion Korean won (£37 billion approx.)
Korean Air Investing in Long-Term Growth
The Korean airline’s agreement was formalised on 25 August at a signing ceremony in Washington, D.C. In attendance were Walter Cho (Korean Air CEO and Chairman of Hanjn Group), Stephanie Pope (President and CEO of Boeing Commercial Airplanes) and Russell Stokes (President and CEO of Commercial Engines and Services at GE Aerospace).
Out of the approximately 70 trillion Korean won invested, the breakdown of costs is as follows:
- Boeing aircraft: 50 trillion KRW (£26.7 billion)
- GE Aerospace and CFM International aircraft engines: 1 trillion KRW (£534.6 million)
- GE Aerospace 20-year maintenance contract: 18.2 trillion KRW (£9.7 billion)
The aircraft order is made up of 20 Boeing 777-9s, 25 Boeing 787-10s, 50 Boeing 737-10s and 8 Boeing 777-8F freighters. The Boeing aircraft are scheduled for delivery up to the end of 2030.
Korean Air will also acquire 11 spare engines from GE Aerospace and 8 from CFM International, as well as 20 years of engine maintenance service from GE Aerospace for 28 of its aircraft.
Korean Air’s fleet strategy will be standardised around five efficient aircraft families: The Airbus A350, A321-neo, Boeing 777, 787 and 737. These models will help to ensure consistency when scaling operations, aid in fuel efficiency and reducing carbon emissions, as well as improving customer experience.
Continuing U.S.-Korean Cooperation
The landmark deal continues Korean Air’s lengthy history of fostering ties between the United States and South Korea, which started with the introduction of its first U.S. cargo route in 1971, travelling from Seoul to Tokyo and then Los Angeles, and then its first passenger route, going from Seoul to Tokyo, Honolulu and then Los Angeles in 1972. Even today, Korean Air operates a trans-Pacific joint venture with Delta Airlines. Korean Air is in collaboration with numerous U.S. aviation companies, such as Pratt & Whitney, General Electric, Hamilton Sundstrand and Honeywell.
The aircraft acquisition is part of the airline’s commitment to long term growth and development following its merger with Asiana Airlines. The investment plan will extend into the mid-to-late 2030s, reflecting delivery delays currently affecting the aviation industry worldwide.
Do you frequently fly with Korean Air? If so, please share your experiences in the comments below.
