Boeing wins a deal to sell 40 aircraft to Korean Air for $15 billion

South Korea’s national carrier, Korea Air, on Monday signed an order with Boeing for 20 777 aircraft, which are under certification, and 20 787 Dreamliner aircraft, on the first day of the Farnborough Air Show.

The value of the contract, which also includes the option to purchase 10 additional 787 aircraft, is more than $15 billion according to announced prices that are rarely adhered to, according to Agence France-Presse.

According to CNN, company president Walter Shaw said he expects to receive the first batch in 2028, expressing his hope that this will be done “on time.”

Boeing said in a statement that this contract will nearly double the company’s orders to purchase 787 Dreamliner aircraft “before its expected merger with Asiana Airlines.”

At the end of 2020, Korean Air announced its intention to buy Asiana for 1.4 billion euros to strengthen its position, which had been weakened by the Covid pandemic.

The European Commission approved this process in February, which is still awaiting final approval from US antitrust authorities.

“Boeing aircraft have played an integral role at Korean Air over the past 50 years,” said Stephanie Pope, director of Boeing’s commercial aviation division, and the aircraft ordered “will continue to support the airline’s long-term goals for sustainability and growth.”

Korean Air previously preferred Boeing over the European company Airbus, but the company now intends to use both suppliers.

In March, it announced an order for 33 Airbus A350 aircraft worth $13.7 billion.

Earlier Monday, US National Airlines announced a confirmed order to purchase four Boeing 777 freighter aircraft, in order to keep pace with the growth of e-commerce.

With this signing, Boeing began a series of contracts to be concluded during the exhibition, although the American aircraft giant is working to solve problems related to production and quality that have exposed it to a huge crisis.