Korean Air is on the brink of concluding a remarkable $32.7 billion deal for new Boeing jets and GE Aerospace engines, as reported by South Korea’s industry ministry during a trip to the United States aimed at enhancing bilateral ties.
Last year, Korean Air affirmed its intentions to procure 20 Boeing 777-9 and 20 787-10 planes, with an option for an additional 10 aircraft, finalizing a memorandum of understanding in July. Should the agreement be completed, the aircraft acquisition would amount to roughly $24.9 billion. Moreover, the contract for eight extra GE engines, with options for two more, coupled with engine maintenance solutions, is projected at $7.8 billion.
South Korea’s Industry Minister Ahn Duk-geun is visiting Washington, D.C. for the second time this month amid global apprehensions regarding U.S. President Donald Trump’s plans to levy tariffs on various trading partners and sectors.
Ahn highlighted that these agreements would promote further interactions between the two nations, underlining the South Korean government’s dedication to fostering private sector partnerships.
The signatory event, aimed at strengthening aerospace collaborations, was graced by Ahn, U.S. Secretary of Commerce Howard Lutnick, and leaders from Korean Air, Boeing, and GE Aerospace. This occasion was noted as the first collective involvement of Ministers from Korea and the United States under Trump’s second administration, raising hopes for enhanced collaboration in fields such as aviation, semiconductors, maritime construction, and energy.
In December, Korean Air completed a $1.3 billion acquisition of two-thirds of Asiana Airlines, the nation’s second-largest airline, establishing itself as one of Asia’s major carriers. The company also recently introduced a new aircraft branding and corporate identity.
Additionally, Malaysia Aviation Group, the parent organization of Malaysia Airlines, revealed on Friday its intention to order 30 new Boeing 737 aircraft for delivery in 2029, while Japan Airlines announced its plans to acquire 17 more Boeing 737-8 aircraft earlier this week.