Korean Air to Finalize $32.7 Billion Aircraft Agreements with Boeing and GE Aerospace
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Synopsis
Korean Air Lines is set to finalize a significant deal worth $32.7 billion, securing 20 aircraft from Boeing and spare engines from GE Aerospace, as revealed by South Korea's industry ministry.
Key Takeaways
- Korean Air to acquire 20 aircraft from Boeing.
- Deal valued at $32.7 billion.
- Includes spare engines from GE Aerospace.
- Agreement signed in Washington.
- South Korea aims to enhance cooperation with the U.S.
Seoul, March 22 (NationPress) Korean Air Lines, the national carrier of South Korea, is set to acquire approximately 20 aircraft from Boeing in the United States and secure spare engines from GE Aerospace, in a total deal estimated at US$32.7 billion, as announced by Seoul's industry ministry.
A pre-signing event took place at the Department of Commerce in Washington, attended by Cho Won-tae, chairman of Hanjin Group, the parent company of Korean Air; Kelly Ortberg, president and CEO of Boeing; and Russell Stokes, president and CEO of GE Aerospace Commercial Engines and Services.
Also in attendance were South Korean Industry Minister Ahn Duk-geun and U.S. Secretary of Commerce Howard Lutnick, according to reports by Yonhap news agency.
As part of this agreement, Korean Air will receive 20 Boeing 777-9 and 20 Boeing 787-10 aircraft by 2033, with an option to acquire an additional 10 aircraft. The two companies have agreed to expedite the deal, which is valued at $24.9 billion.
Korean Air and GE Aerospace have also reached a contract totaling $7.8 billion for the acquisition of eight space engines along with engine maintenance services.
During the ceremony, Ahn expressed optimism that this agreement will enhance broader exchanges between the allies, affirming that South Korea will actively support collaboration between industries in both nations.
Ahn's visit to Washington includes discussions with top U.S. officials, including Lutnick and Energy Secretary Chris Wright, to address issues like U.S. tariffs and South Korea's designation as a 'sensitive country.'
In related news, the government plans to develop support measures for the critical minerals recycling sector as part of its strategy to stabilize the supply chain for advanced industries.
"We are deeply concerned about supply chain vulnerabilities due to heightened global economic uncertainties stemming from the new U.S. administration's protectionist policies, including tariff regulations, and China's export controls on critical minerals," stated acting President Choi Sang-mok during a meeting with industry officials, as reported by the finance ministry. This meeting was held at a rechargeable battery recycling facility in North Jeolla Province.
