Korean Air to buy up to 50 Boeing planes

2024. 7. 23. 11:30
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[Courtesy of Korean Air Lines Co.]
Korean Air Lines Co. nabbed a 30 trillion won ($21.62 billion) deal with The Boeing Co. to purchase up to 50 airplanes, currently the largest in the South Korean company’s history.

Alongside its contract with Airbus SE to purchase 33 new aircraft for 18 trillion won that was inked in March 2024, the South Korean carrier has signed contracts for 83 aircraft worth 48 trillion won in 2024 alone.

Korean Air announced on Monday that it entered a memorandum of understanding (MoU) with Boeing to purchase 20 Boeing 777-9s and 30 Boeing 787-10s at the Farnborough International Airshow, held at Farnborough Airport in the United Kingdom’s Hampshire. The signing ceremony was attended by officials from both companies, including Walter Cho, chairman and chief executive officer of Hanjin Group and Korean Air, as well as Boeing Commercial Airplanes Chief Executive Officer Stephanie Pope.

The Boeing 777-9 and 787-10 aircraft that Korean Air is acquiring are medium-to-large aircraft capable of long-haul flights to destinations such as North America and Europe. Industry insiders estimate the contract to be worth 30 trillion won, making it the largest aircraft purchase deal in Korean Air‘s history. Korean Air’s previous largest-ever contract was the 18 trillion won deal with Airbus in March 2024, which involved the purchase of 27 A350-1000s and six A350-900s.

“The addition of the Boeing 777-9 and 787-10 aircraft is a significant milestone in our strategic objective to expand and upgrade our fleet,” Cho said. “This investment will enhance passenger comfort and improve operational efficiency while contributing to sustainable management by significantly reducing carbon emissions.”

The aviation industry believes that Korean Air’s large-scale contract with Boeing, which has recently been struggling with poor performance, could positively impact its merger with Asiana Airlines Inc. Korean Air is currently awaiting approval from the U.S. Department of Justice (DOJ) for the merger at the end of 2024, after receiving approvals from authorities in the European Union (EU) and Japan. The U.S. decision is due around October.

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