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Korean
Air finalizes $44.8 bil. purchase plan announced last year
By Hankookilbo & The Korea Times - Korean
Air has finalized contracts to purchase 103 next-generation Boeing aircraft and
aircraft engines and maintenance services from U.S. companies in deals worth a
combined $44.8 billion, completing a major U.S. procurement plan announced last
year.
The airline said Wednesday that it
signed final agreements covering $36.2 billion worth of Boeing aircraft and
$8.6 billion in spare engines and engine maintenance services from GE Aerospace
and CFM International.
The deals finalize the $44.8 billion
U.S. purchase plan announced by Hanjin Group Chairman Cho Won-tae in Washington
in August 2025, during President Lee Jae Myung's visit to the United States.
Korean Air said the signing ceremony was
held Tuesday at the Conrad Seoul hotel in Yeouido and jointly hosted with
Boeing.
Senior executives attending the event
included Cho, Boeing Commercial Airplanes President and CEO Stephanie Pope and
CFM International President and CEO Gaël Méheust. Government and financial
officials from Korea and the United States also attended, including Korean
Minister of Trade, Industry and Resources Kim Jung-kwan, U.S. Ambassador to
Korea Michelle Steel, American Chamber of Commerce in Korea Chairman and CEO
James Kim and Export-Import Bank of Korea Chairman and CEO Hwang Ki-yeon.
"This agreement goes beyond a
simple corporate transaction and represents a milestone of trust that
strengthens the solid economic and technological alliance between Korea and the
United States," Cho said.
"Building on our long-standing
partnerships with Boeing, GE Aerospace and CFM, Korean Air will provide the
highest standards of safety and service and faithfully serve as a bridge for
exchanges and economic development between the two countries," he said.
Under the Boeing agreement, Korean Air
will acquire 103 aircraft: 20 Boeing 777-9s, 25 Boeing 787-10s, 50 Boeing
737-10s and eight Boeing 777-8F freighters.
The airline will also purchase 21 spare
engines from GE Aerospace and CFM. CFM International is a 50-50 joint venture
between U.S.-based GE Aerospace and France's Safran Aircraft Engines and is one
of the world's largest aircraft engine manufacturers.
Korean Air also signed a 15-year
agreement with GE Aerospace for engine maintenance services covering 28
aircraft.
The airline said the investment is
intended to prepare for medium- to long-term growth following its integration
with Asiana Airlines while proactively addressing global aircraft delivery
delays that have persisted since the COVID-19 pandemic.
Korean Air plans to modernize its fleet
with more efficient next-generation aircraft, improve operational efficiency
and increase capacity while enhancing passenger service. It also expects the
new aircraft to improve fuel efficiency and reduce carbon emissions as the
aviation industry moves toward lower-emission operations.
