Sonali Tiwary
Korean Air has struck a deal to buy 103 Boeing jets worth $36 billion, the largest purchase in the airline’s history. The announcement came Monday, just hours after South Korean President Lee Jae-myung met with US President Donald Trump in Washington to discuss trade issues.
The massive order includes a mix of passenger and cargo planes: 50 Boeing 737-10s, 20 777-9s, 25 787-10s, and eight 777-8 Freighter cargo planes. In a separate deal worth $13.7 billion, Korean Air also agreed to buy engines and a 20-year maintenance package from GE Aerospace, bringing the total value to nearly $50 billion.
Walter Cho, Korean Air’s chairman and CEO, called the agreement “a pivotal moment” for the airline. “These next-generation aircraft will deliver significant gains in fuel efficiency and enhance the passenger experience across our global network,” Cho said.
The timing is significant for Korean Air, which is working to combine operations with Asiana Airlines after acquiring the carrier last year. The new planes will help create a more unified fleet as the airlines merge.
“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,” said Stephanie Pope, president and CEO of Boeing Commercial Airplanes.
Korean Air plans to use about 80% of the new planes to replace older aircraft, with the remainder supporting expansion on routes to the United States, Latin America, and South America.
The deal comes as Boeing works to recover from several difficult years. The American plane maker has faced serious problems including two fatal crashes, a mid-air panel blowout incident.
Trade politics appear to be influencing recent aircraft purchases. Several countries negotiating with the Trump administration have announced major Boeing orders. Japan agreed to buy 100 Boeing jets in July as part of its US trade agreement, while Indonesia’s national airline Garuda ordered 50 Boeing planes to help reduce US tariffs on Indonesian goods.
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US Commerce Secretary Howard Lutnick highlighted the deal’s importance to American manufacturing: “The world recognizes that our aircraft are the most advanced in the world, and this administration is committed to reshoring advanced manufacturing jobs for Americans.”
Boeing claims the Korean Air deal will support about 135,000 jobs across the United States. The companies already have strong ties, with Korean Air’s Aerospace Division supplying parts for several Boeing models, including the distinctive wingtips for 787 Dreamliner planes.
The new aircraft promise major improvements in efficiency. The 777-9 passenger jets will use 20% less fuel than older models while carrying 426 passengers and flying up to 13,510 kilometers. The 737-10s can transport 230 passengers up to 5,740 kilometers with similar fuel savings. The 777-8 Freighters will be the largest twin-engine cargo planes available, using 30% less fuel than current cargo aircraft.
The agreement was signed during the Korea-US Business Roundtable focused on manufacturing partnerships. Other deals announced included collaboration between Samsung’s shipbuilding division and Oregon-based Vigor Marine Group on US Navy maintenance projects.
South Korea had previously committed $150 billion to support the US shipbuilding industry as part of its ongoing trade negotiations with Washington.
