Korean Air intends to purchase 103 next-purchase aircraft from Boeing, as well as 19 spare engines from GE Aerospace and CFM International, and a comprehensive engine maintenance programme with the company.
The investment totalled $50bn. This consists of $36.2bn for Boeing aircraft, $690 million for 19 spare engines and an additional $13bn for the 20-year engine maintenance service contract.
The aircraft purchase order includes 20 777-9s, 25 787-10s, 50 737-10s, and eight 777-8F freighters. The aircraft are scheduled for phased delivery through the end of 2030.
The agreements were formalised on August 25 at a signing ceremony in Washington DC, attended by Korean Air CEO Walter Cho, Boeing Commercial Airplanes CEO Stephanie Pope, and GE Aerospace Commercial Engines & Services CEO Russell Stokes.
“This strategic aircraft acquisition is a proactive measure to support Korean Air's long-term growth following its integration with Asiana Airlines,” Korean Air said in a statement. “The airline's investment plan extends into the mid-to-late 2030s, and reflects delivery delays affecting the global aviation industry.”
The order will support the airline as it standardises long-term operations around the 777, 787, 737 jets, along with the A350 and A321neo.
"This move is expected to ensure a stable capacity growth, achieve economies of scale through fleet simplification, enhance fuel efficiency, reduce carbon emissions, and improve the overall customer experience," Korean Air said in a statement.
“As Korean Air transitions to a larger unified carrier, we are committed to supporting the airline's growth with one of the world's most efficient fleets,” commented Pope.