Korean Air signs $50 billion deal to purchase aircraft, engines from Boeing, GE Aerospace

Seoul, Aug 26 (IANS) Korean Air said on Tuesday it has signed a US$50 billion agreement to purchase over 100 new planes and aircraft spare engines from Boeing and GE Aerospace during President Lee Jae Myung's visit to Washington.

The deal, the largest in the airline's history, builds on Korean Air's previous order placed in March for 50 Boeing jets and GE engines, reports Yonhap news agency.

Korean Air Chief Executive Officer (CEO) Cho Won-tae attended the signing ceremonies in Washington on Monday (U.S. time) with Boeing Commercial Airplanes CEO Stephanie Pope and GE Aerospace Commercial Engines & Services CEO Russell Stokes.

The airline said in a regulatory filing that it will buy 103 aircraft -- 20 Boeing 777-9s, 25 Boeing 787-10s, 50 Boeing 737-10s and eight 777-8 freighters -- worth $36.2 billion.

Deliveries are scheduled to be completed by 2030.

In a separate $13.7 billion deal with GE Aerospace, the airline will purchase 19 spare engines and secure long-term maintenance services for 28 engines over the next two decades.

Korean Air said the investment is a preemptive move to fuel growth ahead of its planned merger with Asiana Airlines Inc. and to bolster Korea-U.S. cooperation in the aerospace sector.

"As a national flag carrier, we closely connect South Korea and the United States through passenger and cargo services," a Korean Air official said. "We will contribute to strengthening bilateral relations through continued U.S. investment."

Founded in 1969, Korean Air launched its first regular cargo route to Los Angeles via Tokyo in 1971 and opened a passenger route from Seoul to Los Angeles via Tokyo and Honolulu in 1972.

In March, Korean Air Lines said it would acquire some 20 aircraft from US Boeing and procure spare engines from GE Aerospace, in a combined deal worth $32.7 billion.

A pre-signing ceremony took place at the Department of Commerce in Washington, attended by Cho Won-tae, chairman of Hanjin Group, Korean Air's parent firm; Kelly Ortberg, Boeing's president and CEO; and Russell Stokes, president and CEO of GE Aerospace Commercial Engines and Services.

—IANS

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