1 of 2 | The Boeing 787 Dreamliner is shown being assembled in North Charleston, S.C.. Photo courtesy of the Boeing Co,
Korean Air said Tuesday the country’s flagship carrier would spend $36.2 billion to purchase 103 next-generation aircraft from Boeing, including 95 passenger planes and eight freighters. Toward that end, the two companies signed a memorandum of understanding.
Korean Air operates 108 Boeing jets. With 72 Boeing planes on order, the company’s total orders with the U.S. manufacturer will increase to 175 once the deal is finalized.
The new orders will include 20 777-9s, 25 787-10s and 50 737-10s, plus eight 777-8F freighters. Deliveries will continue through the late 2030s, according to Korean Air.
It is part of Korean Air’s $56.1 billion investment in the United States, which was announced in time for South Korean President Lee Jae Myung’s first summit with his counterpart Donald Trump on Monday.
The Seoul-based company also disclosed its plans to buy $690 million worth of spare engines from GE Aerospace and sign a $13 billion contract to receive engine maintenance services from the General Electric unit over the next 20 years.
Korean Air Chairman Walter Cho flew to Washington to ink the agreements with the company’s two long-standing partners.
“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,” he said in a statement.
“This investment is also a critical enabler for our future as a merged airline with Asiana, to ensure that our combined carrier is one of the most competitive airlines in the industry,” he added.
Korean Air launched the country’s first cargo service to the United States in April 1971, operating the Seoul-Tokyo-Los Angeles route. In the next year, it inaugurated the first passenger route between Seoul, Tokyo, Honolulu and Los Angeles.
Last December, Korean Air completed the acquisition of the nation’s No. 2 player Asiana Airlines by securing a 63.88% stake.
