▲ Korean Air Finalizes Purchase Agreement for 103 Boeing Aircraft and GE Aerospace Engines
Korean Air has turned its massive U.S. investment plan worth a total of 60 trillion won, announced in alignment with the South Korea-U.S. summit in August of last year, into a final purchase agreement.
Korean Air announced today (September 16) that it has finalized the acquisition of next-generation, high-efficiency Boeing aircraft from the United States, valued at $36.2 billion (approximately 49.4 trillion won).
The total of 103 Boeing aircraft being introduced by Korean Air through this contract includes twenty 777-9s, twenty-five 787-10s, fifty 737-10s, and eight 777-8F freighters.
Alongside this, Korean Air has also completed contracts with GE Aerospace and CFM International worth approximately $8.6 billion (around 11.7 trillion won) for the purchase of spare aircraft engines and engine maintenance services.
Consequently, the airline will purchase 21 spare engines from GE Aerospace and CFM, and receive engine maintenance services for 28 aircraft from GE Aerospace over a period of 15 years.
This follows up on the memorandum of understanding (MOU) signed in Washington, D.C., during the economic delegation's visit to the U.S. in August of last year, aimed at preparing for mid-to-long-term growth following integration while preemptively responding to global aircraft supply delays persisting since the pandemic.
However, the total investment amount decreased by about 7 trillion won compared to the initial announcement, as an optional engine maintenance service contract was excluded from the final agreement.
Yesterday (September 15), Korean Air held an event at the Conrad Seoul Hotel in Yeongdeungpo-gu, Seoul, to commemorate the finalization of the MOU. Attendees included Cho Yang-ho's successor and Hanjin Group Chairman Cho Won-tae, Boeing Commercial Airplanes President and CEO Stephanie Pope, and CFM President and CEO Gaël Méheust.
The event was also attended by Minister of Trade, Industry and Energy Kim Jeong-kwan, U.S. Ambassador to South Korea Michelle Steel, AmCham Korea Chairman and CEO James Kim, and Export-Import Bank of Korea Chairman Hwang Ki-yeon.
At the event, Chairman Cho Won-tae stated, "This contract goes beyond a simple business transaction; it is a milestone of trust that further strengthens the robust economic and technology alliance between South Korea and the United States. Building on our long-standing partnerships with Boeing, GE Aerospace, and CFM, we will deliver the highest level of safety and service, faithfully playing our role as a bridge for exchange and economic development between the two nations."
Korean Air plans to modernize its fleet and enhance operational efficiency by introducing next-generation, high-efficiency aircraft, while strengthening its competitiveness through expanded transport capacity and improved customer service.
In addition, the airline intends to actively respond to future changes in the aviation industry by improving fuel efficiency and reducing carbon emissions through the adoption of high-efficiency new equipment.
(Photo provided by Korean Air, Yonhap News)
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