KA Buys 50 Boeing Wide-Bodies Plus GE Aerospace Engines

The U.S. Department of Commerce announced a major deal involving Korean Air, Boeing, and GE Aerospace that underscores American industry and bolsters the confidence of the aviation sector.

Under the deal, Korean Air will purchase 50 Boeing wide-body aircraft and the GE Aerospace engines that power them. Overall, the deal will amount to about $32.7 billion and comes at a time when Boeing is emerging from its troubles and can use all the sales it can get.

Department of Commerce Secretary Howard Lutnick said, "Today's announcement clearly illustrates the global recognition of American manufacturing and innovation. Our skilled workforce at industry leaders like Boeing and GE Aerospace embodies America's unparalleled industrial strength and technological prowess."

Kelly Ortberg, President and CEO of Boeing said, "Our ongoing collaboration with Korean Air highlight international confidence in aircraft made in America," and that the deal illustrates “the competitiveness of American manufacturing and exports” on the global level.

Walter Cho, Chairman and Chief Executive Officer of Korean Air and Hanjin Group said the deal will help the airline expedite its fleet-renewal and support its expansion after recently acquiring Asiana Airlines.

Cho said, "Boeing and GE Aerospace provide the advanced technology that powers our commitment to excellence. Our partnership is essential to our vision of becoming the world's most loved airline."

Korean Air will pay $24.9 billion for 50 Boeing aircraft including 20 777-9 and 20 787-10 to be delivered through 2033. The carrier will buy another 10 aircraft under similar terms and eight spare engines from GE Aerospace with options for two more.

Korean Air will pay $7.8 billion for GE Aerospace to provide the engines for the Boeing aircraft and the spares as well as comprehensive maintenance services for the GE9X engines that will power the 777-9 aircraft.

Russell Stokes, President and Chief Executive Officer of GE Aerospace said, "We're enthusiastic about advancing our longstanding collaboration, supporting Korean Air's fleet modernization and growth ambitions.”

FMI:  www.commerce.gov/