Korean Air Finalizes $44.8 Billion Boeing, GE Deal

Korean Air finalized a roughly $44.8 billion deal covering 103 Boeing aircraft and engine agreements with GE Aerospace and CFM International. The aircraft portion totals $36.2 billion at list prices for 20 Boeing 777-9s, 25 787-10s, 50 737-10s and eight 777-8 freighters, with deliveries planned through the late 2030s. An $8.6 billion contract covers 21 spare engines and 15 years of maintenance for 28 aircraft. Confirmation came Wednesday at an event attended by Korean Air Chairman and CEO Walter Cho, Boeing Commercial Airplanes President and CEO Stephanie Pope, CFM International President and CEO Gaël Méheust, U.S. Ambassador to South Korea Michelle Steel, and South Korean Minister of Trade, Industry and Energy Kim Jung-kwan. Cho Won Tae called the agreements an important milestone that demonstrates U.S.-South Korea ties. Boeing said the deal resulted from bilateral trade negotiations. The airline said the investment supports fleet modernization and capacity growth as it prepares to integrate Asiana Airlines. IBA estimated the discounted aircraft order at about $12.6 billion at current market prices. What is contested: No material disputes appear among sources on the deal size, aircraft mix or parties. Coverage notes the gap between the $36.2 billion list price and IBA's roughly $12.6 billion market estimate after discounts, without company or government disagreement on either figure.
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