Korean Air is to make a $50 billion (£37.1 bn) investment in 103 Boeing aircraft, 19 spare engines from GE Aerospace and CFM International, and a 20-year engine maintenance programme for 28 aircraft with GE Aerospace.
New aircraft account for $36.2 bn (£26.84 bn) of the investment. The purchase order includes 20 Boeing 777-9s, 25 Boeing 787-10s, 50 Boeing 737-10s, and eight Boeing 777-8F freighters. They are scheduled for phased delivery, until the end of 2030.
This strategic acquisition of aircraft is a proactive measure to support Korean Air’s long-term growth following its integration with Asiana Airlines.
Korean Air’s fleet strategy will standardise its long-term operations around five efficient aircraft families: the Boeing 777, 787 and 737 and the Airbus A350 and A321-neo.
The airline’s investment plan extends into the mid-to-late 2030s, accounting for the delivery delays affecting the global aviation industry.
It is planned in order to ensure stable capacity growth while achieving economies of scale through fleet simplification, enhanced fuel efficiency, reduced carbon emissions and an improved customer experience.
The airline will acquire 11 spare engines from GE Aerospace and eight from CFM International.
This strategic deal was chosen to strengthen Korean Air’s partnership with the US aviation industry. The airline currently collaborates with US-based aviation companies including Pratt and Whitney, General Electric (GE), Hamilton Sundstrand and Honeywell.
The agreements were formalised at a signing ceremony in Washington DC attended by Walter Cho, Chairman and CEO of Korean Air and Hanjin Group, Stephanie Pope, President and CEO of Boeing Commercial Airplanes, and Russell Stokes, President and CEO of Commercial Engines and Services at GE Aerospace.
