Korean Air makes airlines biggest-ever Boeing jet order amid Trump-Lee summit

By David Shepardson

WASHINGTON (GWN) -Korean Air announced a $50 billion order on Monday for 103 Boeing airplanes and GE Aerospace engines and servicing coinciding with the go to of South Korean President Lee Jae Myung to Washington.

The order, the most important in the Korean air service’s historical past, consists of a combine of 787s, 777s and 737 Boeing airplanes price about $36.5 billion.

GWN first reported the deal earlier Monday.

Korean Air also announced a separate deal Monday with GE on the acquisition and upkeep of engines valued at $13.7 billion.

Many nations negotiating commerce offers with the Trump administration have announced or plan to announce important Boeing airplane orders. Boeing has received a string of major orders in current months.

Korean Air CEO Cho Won-tae, who not too long ago visited one of Boeing’s U.S. factories, told GWN Monday the record-breaking order will help the most important Korean airline increase to more U.S., Latin American and South American locations.

Cho said about half of the new order of 103 planes could be 737 MAX 10 planes and the remaining could be a combine of 777-9 and 787 airplanes. About 80% of the new Boeing planes would exchange current airplanes in the fleet.

He said the company had religion in Boeing despite prior troubles the planemaker skilled.

The Boeing deal is price $36.2 billion, South Korea’s industry ministry said, in addition to the GE deal.

Boeing said the deal would help Korean Air totally combine operations with Asiana Airlines, a subsidiary of South Korea’s largest airline it acquired last 12 months.

“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.

Commerce Secretary Howard Lutnick told GWN the major Boeing and GE deal would increase U.S. aerospace exports.

“The world acknowledges that our plane are the most superior in the world, and this administration is dedicated to reshoring superior manufacturing jobs for Americans,” Lutnick said.

In March, South Korea’s industry ministry said Korean Air said it would soon finalize a $32.7 billion deal for new Boeing and GE engines. Korean Air last year said it would order 20 777-9 and 20 787-10 planes from Boeing, with options for an additional 10 aircraft. The new order is separate from that purchase.

Korean Air, a founding member of the SkyTeam airline alliance, was established in 1969 when state-owned Korean Air Lines was taken over by South Korean conglomerate Hanjin Kal.

(Reporting by David Shepardson; Editing by Stephen Coates)