GE Aerospace and Boeing Seal Billion-Dollar Deal with Korean Air

GuruFocus.com03-24

March 24 - South Korea's Korean Air sealed major fleet upgrades on Friday, finalizing deals with Boeing (BA, Financial) and GE Aerospace (GE, Financial) to enhance its aircraft and engine lineup.

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The carrier will purchase 50 new planes worth $24.9 billion by 2033, comprising 20 units each of the 777-9 and 787-10 models. South Korea's trade ministry provided these details on March 21, emphasizing the strategic fleet expansion aimed at boosting capacity and efficiency.

In addition, Korean Air secured a $7.8 billion contract with GE Aerospace for eight jet engines and maintenance support. The deal finalizes a procurement initiative first revealed in July, reinforcing the airline's commitment to modernizing its operational capabilities.

Korean Air's new aircraft, "The Livery", unveiled earlier this month, has helped it to refresh its image after its merger with Asiana. The carrier became Asia's second largest by capacity. On the criticism that the deals were (a bid for) tariff scratching, government officials pointed out the role they had in raising ties with the United States.

This article first appeared on GuruFocus.
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