Korean Air has finalized a purchase agreement worth approximately 60 trillion won ($44.8 billion) for 103 Boeing aircraft. This agreement comes a year after the airline announced its large-scale purchasing plan in Washington, D.C.
On September 16, Korean Air announced it has signed a contract with Boeing for the purchase of 103 next-generation, fuel-efficient aircraft valued at $36.2 billion. Additionally, it has completed contracts with GE Aerospace and CFM International for around $8.6 billion in spare engine purchases and engine maintenance services.
The aircraft to be introduced include 20 Boeing 777-9s, 25 787-10s, 50 737-10s, and 8 777-8F freighters, which will be delivered sequentially by the late 2030s. Korean Air will purchase a total of 21 spare engines from GE Aerospace and CFM International and has signed a 15-year maintenance service contract for engines on 28 aircraft with GE Aerospace.
Last August, Korean Air signed a memorandum of understanding (MOU) in Washington, D.C., with Boeing and GE Aerospace regarding aircraft and engine purchases and maintenance services. The final contract is a result of the purchasing plan announced at that time.
This agreement is significant not only as a large corporate transaction but also as a testament to the close communication and support between the governments of South Korea and the United States.
The South Korean government has provided policy support and regulatory improvements to enhance the competitiveness of the aviation industry. Financial cooperation has been implemented to support the large-scale investment.
Previously, the Export-Import Bank of Korea agreed to provide a total of 700 billion won, including 300 billion won in export financing and 400 billion won for supply chain stabilization, to support Korean Air's expansion of its fleet. In July, Korean Air secured additional funding by issuing Samurai bonds worth 20 billion yen, backed by the bank's guarantee.
Korean Air held a ceremony on September 15 at the Conrad Seoul Hotel in Yeongdeungpo, attended by Hanjin Group Chairman Cho Won-tae, Boeing Commercial Airplanes President and CEO Stephanie Pope, and CFM President and CEO Gael Meoest, to commemorate the finalization of the contract.
Chairman Cho stated, "It is very meaningful that the promise made in Washington last year has come to fruition with this final contract. This agreement is a milestone of trust that strengthens the solid economic and technological alliance between South Korea and the United States beyond a simple corporate transaction."
* This article has been translated by AI.
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