Key Takeaways
- Korean Air has finalized an order for 103 Boeing aircraft.
- The deal includes wide-body passenger jets, freighters and single-aisle planes.
- The order is worth $36.2 billion at list prices.
Korean Air has finalized an order for 103 Boeing aircraft, valued at $36.2 billion at list prices, according to a joint statement by the airline and the US planemaker on Wednesday.
The order includes 20 777-9s, 25 787-10s, 50 737-10s and eight 777-8 Freighters, with only the 787 currently certified for commercial service.
Boeing is still developing the 777-8 Freighter, and the broader package is valued at $44.8 billion, including an $8.6 billion deal for the purchase of 21 spare engines from GE Aerospace and CFM International and a 15-year engine maintenance agreement covering 28 aircraft.
Korean Air CEO Cho Won-tae described the completion of the agreements as a significant milestone, underscoring ties between the United States and South Korea.
The investment is the largest in Korean Air’s history and will support long-term fleet expansion following its integration of Asiana Airlines.
Cho added that the newer aircraft would help Korean Air expand to more destinations in the United States and Latin America, with about 80% of the jets replacing existing aircraft in the carrier’s fleet.
Aviation advisory and intelligence firm IBA estimated the aircraft order is worth about $12.6 billion at current market prices after discounts.
The deal was first unveiled during South Korean President Lee Jae-myung’s visit to Washington last year, and Korean Air said the investment would improve fuel efficiency as it transitions to newer aircraft models.
