Korean Air announced its intent to purchase 103 of Boeing's fuel-efficient family of airplanes earlier today, 26th August.
The South Korean carrier seeks to modernise its fleet and support further growth as it fully integrates operations with Asiana Airlines over the next several years.
This historic agreement was signed during the Korea-U.S. Business Roundtable which centred on Partnership for a Manufacturing Renaissance.
Howard Lutnick, US secretary of commerce, and South Korean minister of trade, industry, and energy Kim Jung-kwan presided over the event.
Korean Air's commitment will be the airline's largest-ever order and Boeing's largest widebody order from an Asian carrier.
A pivotal moment
Korean Air chairman and chief executive Walter Cho said of the impending purchase: "This agreement with our long-standing partners, Boeing and GE, marks a pivotal moment for Korean Air. Acquiring these next-generation aircraft is the core of our fleet modernization strategy, delivering significant gains in fuel efficiency and enhancing the passenger experience across our global network.”
Cho added that the investment is also a critical enabler for the airline’s future as a merged airline with Asiana, ensuring that the combined entity becomes one of the most competitive airlines in the global aviation sector.
What happens now?
Upon finalisation, the deal will mark Korean Air's first order for the 777-8F and will support an estimated 135,000 jobs across the United States.
The order will be posted to Boeing's Orders & Deliveries website once it is completed and includes the following models:
- 20 777-9s
- 25 787-10s
- 50 737-10s
- 8 777-8 Freighters
Korean Air's orders and commitments for Boeing airplanes in 2025 surpasses 150 units, following the airline's incremental order in March for 20 777-9s and 20 787-10s.
This moved Stephanie Pope, president and chief executive of Boeing Commercial Airplanes to say: "We are honoured to strengthen our partnership with Korean Air through this landmark agreement, which reflects the value and capabilities of Boeing's market-leading airplane family. As Korean Air transitions to a larger unified carrier, we are committed to supporting the airline's growth with one of the world's most efficient fleets."
