Korean Air confirms introduction of 103 Boeing next-generation aircraft... A spare engine and maintenance contract was also signed with GE and CFM.

GE Aero/CFM spare engine purchase/maintenance contract

Chairman Cho Won-tae “A milestone of trust that strengthens the ROK-US economic and technological alliance”

(Seoul = Yonhap News) Reporter Jang Ha-na = Korean Air's investment plan for the United States worth a total of 60 trillion won, announced in August of last year in conjunction with the Korea-U.S. summit, led to a final purchase contract.

Korean Air announced on the 16th that it has confirmed the introduction of Boeing's next-generation high-efficiency aircraft worth $36.2 billion (about 49.4 trillion won).

Korean Air will introduce a total of 103 Boeing aircraft through this contract, including 20 777-9s, 25 787-10s, 50 737-10s, and 8 777-8F cargo planes.

In addition, Korean Air also completed a contract with GE Aerospace and CFM International for the purchase of aircraft spare engines and engine maintenance services worth approximately $8.6 billion (approximately 11.7 trillion won). Accordingly, 21 spare engines will be purchased from GE Aerospace and CFM and engine maintenance services for 28 aircraft will be received from GE Aerospace for 15 years.

This is in accordance with the memorandum of understanding (MOU) signed in Washington, D.C. during the economic mission to the United States in August last year, and is intended to prepare for mid- to long-term growth due to integration while also proactively responding to continued delays in global aircraft supply following the pandemic.

However, the engine maintenance service option contract was excluded from the final contract, and the total investment amount decreased by about 7 trillion won compared to the time of announcement.

On the 15th, Korean Air held an event to commemorate the final MOU agreement at the Conrad Seoul Hotel in Yeongdeungpo-gu, Seoul, with Hanjin Group Chairman Cho Won-tae, Boeing Commercial Airplanes President and CEO Stephanie Pope, and CFM President and CEO Gael Mejöst in attendance.

Also attending the event were Minister of Trade, Industry and Energy Kim Jeong-kwan, U.S. Ambassador to Korea Michelle Steel, American Chamber of Commerce in Korea (AMCHAM) Chairman and CEO James Kim, and President of the Export-Import Bank of Korea Hwang Ki-yeon.

Chairman Cho Won-tae said at the event, "This contract is a milestone of trust that goes beyond a simple transaction between companies and further strengthens the solid economic and technological alliance between Korea and the United States. Based on the long-standing partnerships we have built with Boeing, GE Aerospace, and CFM, we will provide the best safety and service and faithfully play our role in linking exchange and economic development between the two countries."

Korean Air plans to modernize its fleet and increase operational efficiency by introducing next-generation high-efficiency aircraft, while strengthening competitiveness by expanding transportation capacity and improving customer service. In addition, we plan to actively respond to changes in the future aviation industry by increasing fuel efficiency and reducing carbon emissions by introducing new high-efficiency equipment.