Boeing to supply 103 aircraft to Korean Air for $36.2 billion, aiding fleet expansion

Boeing will supply 103 aircraft to Korean Air worth $36.2 billion at list prices, the U.S. planemaker said on Tuesday, in a bid to support South Korea’s flag carrier’s long term expansion of its fleet.

According to the statement released by Boeing, the order would comprise 20 777-9s, 25 787-10s, 50 737-10s and eight 777-8 Freighters.

Only the 787s are currently certified for commercial service, whilst the aircraft company is developing the 777-8 Freighter. Aviation advisory and ⁠intelligence firm IBA estimated the aircraft order at $12.6 billion after discounts.


Korean Air reported the entire package to be priced at $44.8 billion, which includes an $8.6 billion deal for the purchase of 21 spare engines from GE Aerospace and CFM International and a 15-year ​engine maintenance agreement covering 28 aircraft.

The air carrier highlighted that the investment would support long-term fleet expansion following its integration of Asiana Airlines and help improve ‌fuel ⁠efficiency as it transitions to newer aircraft models.

The decision was first unveiled during South Korean President Lee Jae-myung's visit to Washington last year.

According to a previous statement by Korean Air CEO ​Cho Won-tae, the newer aircraft would help Korean Air expand to more destinations in the United States and Latin America, ​and about 80% of the jets would replace ​existing ⁠aircraft in the carrier's fleet.

The CEO said the completion of the agreement was a major milestone and added that the purchase was an instrumental part of the US-South Korea.

Boeing said the deal resulted from bilateral trade discussions.

(With inputs from Reuters)