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Korean Air signs $32.7b deal with Boeing, GE to
upgrade fleet
By Kim
Hae-yeon, The Korea Herald - Korean Air has committed $32.7 billion to global
aircraft manufacturer Boeing and leading engine maker GE Aerospace to keep its
fleet modernization strategy on track, ensuring timely aircraft deliveries amid
ongoing supply chain disruptions.
The airline
announced Sunday that its Chairman and CEO Walter Cho, Boeing President and CEO
Kelly Ortberg, and GE Aerospace President and CEO of Commercial Engines and
Services Russell Stokes met in Washington, DC, on Friday to finalize the deal
and discuss ways to strengthen collaboration.
The signing
ceremony was also attended by Korea’s Minister of Trade, Industry and Energy
Ahn Duk-geun and US Secretary of Commerce Howard Lutnick. This marks the first
time senior ministers from both countries have jointly participated in a
commemorative event since the beginning of the second Donald Trump
administration.
Korean Air
is moving quickly to implement the agreement signed with Boeing at the 2024
Farnborough International Airshow in the UK last July. The deal includes the
delivery of 20 Boeing 777-9 aircraft and 20 Boeing 787-10 widebody aircraft by
2033, with an option to purchase 10 additional aircraft under similar terms.
The total
package includes $24.9 billion for Boeing aircraft and $7.8 billion for GE
engines and maintenance, bringing the overall value to $32.7 billion.
Korean Air’s
decision to deepen its partnership with Boeing and GE Aerospace comes amid
rising challenges in the global aircraft and engine supply chain. According to
the International Air Transport Association, global aircraft production has
declined from 1,813 units in 2018 to 1,254 in 2024.
The airline
reaffirmed Cho’s strong commitment to fleet modernization, especially as the
fully integrated airline prepares to launch by the end of next year.
“Boeing and
GE Aerospace provide the advanced technology that powers our commitment to
excellence,” Cho stated during the initial agreement signing last year.
“Our
partnership is essential to our vision of becoming the world’s most beloved
airline. I’m grateful for the solid foundation we’ve built together and the
support from both governments that enables our continued success.”
The Boeing
777-9, a next-generation widebody aircraft currently undergoing certification
by the US Federal Aviation Administration, features an expanded cabin for
enhanced passenger comfort. The Boeing 787-10, the largest model in Boeing’s
Dreamliner series, is known for its fuel efficiency and environmentally
friendly design.
“Through
fleet modernization, we aim to provide our passengers with a more comfortable
travel experience while transitioning to fuel-efficient aircraft to reduce
carbon emissions and uphold our (environmental, social and governance)
management principles,” a Korean Air official said.
