Korean Air finalizes $44.8 bil. purchase plan announced last year
Summary
Korean Air finalized contracts in Seoul on Tuesday to purchase 103 next-generation Boeing aircraft and related engine services from U.S. companies worth $44.8 billion. The package includes $36.2 billion for Boeing aircraft and $8.6 billion for spare engines and maintenance services from GE Aerospace and CFM International. The airline said the investment will support fleet modernization, capacity growth and lower emissions after its integration with Asiana Airlines.
Key Facts
- Korean Air will buy 103 aircraft under the Boeing agreement, including 20 Boeing 777-9s, 25 Boeing 787-10s, 50 Boeing 737-10s and eight Boeing 777-8F freighters.
- The airline also signed a 15-year engine maintenance agreement with GE Aerospace covering 28 aircraft.
- CFM International is a 50-50 joint venture between GE Aerospace and Safran Aircraft Engines.
- Korean Air said the new aircraft are intended to improve fuel efficiency and reduce carbon emissions as the airline moves toward lower-emission operations.
Hanjin Group Chairman Cho Won-tae, front row fifth from left, poses with Minister of Trade, Industry and Resources Kim Jung-kwan, front row third from left, U.S. Ambassador to the Republic of Korea Michelle Steel, front row fourth from left, Boeing Commercial Airplanes President and CEO Stephanie Pope, front row second from left, and Export-Import Bank of Korea Chairman and CEO Hwang Ki-yeon, back row second from left, at a ceremony marking the signing of final agreements on aircraft and engine purchases and services, jointly hosted by Korean Air and Boeing at the Conrad Seoul hotel in Yeouido, Seoul, Tuesday. Courtesy of Korean Air
Korean Air has finalized contracts to purchase 103 next-generation Boeing aircraft and aircraft engines and maintenance services from U.S. companies in deals worth a combined $44.8 billion, completing a major U.S. procurement plan announced last year.
The airline said Wednesday that it signed final agreements covering $36.2 billion worth of Boeing aircraft and $8.6 billion in spare engines and engine maintenance services from GE Aerospace and CFM International.
The deals finalize the $44.8 billion U.S. purchase plan announced by Hanjin Group Chairman Cho Won-tae in Washington in August 2025, during President Lee Jae Myung's visit to the United States.
Korean Air said the signing ceremony was held Tuesday at the Conrad Seoul hotel in Yeouido and jointly hosted with Boeing.
Senior executives attending the event included Cho, Boeing Commercial Airplanes President and CEO Stephanie Pope and CFM International President and CEO Gaël Méheust. Government and financial officials from Korea and the United States also attended, including Korean Minister of Trade, Industry and Resources Kim Jung-kwan, U.S. Ambassador to Korea Michelle Steel, American Chamber of Commerce in Korea Chairman and CEO James Kim and Export-Import Bank of Korea Chairman and CEO Hwang Ki-yeon.
"This agreement goes beyond a simple corporate transaction and represents a milestone of trust that strengthens the solid economic and technological alliance between Korea and the United States," Cho said.
"Building on our long-standing partnerships with Boeing, GE Aerospace and CFM, Korean Air will provide the highest standards of safety and service and faithfully serve as a bridge for exchanges and economic development between the two countries," he said.
Under the Boeing agreement, Korean Air will acquire 103 aircraft: 20 Boeing 777-9s, 25 Boeing 787-10s, 50 Boeing 737-10s and eight Boeing 777-8F freighters.
The airline will also purchase 21 spare engines from GE Aerospace and CFM. CFM International is a 50-50 joint venture between U.S.-based GE Aerospace and France's Safran Aircraft Engines and is one of the world's largest aircraft engine manufacturers.
Korean Air also signed a 15-year agreement with GE Aerospace for engine maintenance services covering 28 aircraft.
The airline said the investment is intended to prepare for medium- to long-term growth following its integration with Asiana Airlines while proactively addressing global aircraft delivery delays that have persisted since the COVID-19 pandemic.
Korean Air plans to modernize its fleet with more efficient next-generation aircraft, improve operational efficiency and increase capacity while enhancing passenger service. It also expects the new aircraft to improve fuel efficiency and reduce carbon emissions as the aviation industry moves toward lower-emission operations.
This article from the Hankook Ilbo, the sister publication of The Korea Times, was translated by a generative AI system and edited by The Korea Times.
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