Boeing

8 billion (about 60 trillion won) with Boeing and GE Aerospace of the United States. The deals accelerate fleet modernization and operational efficiency at Korean Air, which will merge with Asiana Airlines (020560) in December. 2 billion (about 50 trillion won). The carrier also agreed to buy 21 spare aircraft engines from GE Aerospace and CFM International, and to receive engine maintenance services from GE Aerospace for 28 aircraft over 15 years. 6 billion. , in August last year. "I find it deeply meaningful that the promise we made in Washington last year has come to fruition as a final contract," Cho said at the signing ceremony.

"This contract goes beyond a simple transaction between companies. It is a milestone of trust that further strengthens the firm economic and technological alliance between Korea and the United States." S. Ambassador to Korea Michelle Steel. The completion of the massive investment also bolsters Korean Air's growth strategy of becoming one of the world's 10 largest "mega carriers" on the back of its merger with Asiana Airlines. Through the contract, Korean Air will take delivery of 20 777-9 jets, Boeing's next-generation flagship long-haul widebody passenger aircraft with two or more aisles, along with 25 787-10s, 50 737-10s and eight 777-8F freighters.

The large-scale purchase is also intended to get ahead of global aircraft delivery delays that have persisted since the COVID-19 pandemic. Korean Air is pushing ahead with fleet expansion and modernization by introducing next-generation, high-efficiency aircraft. The carrier currently operates a fleet of 166 aircraft, which is expected to grow to about 230 after the Asiana Airlines merger. With that fleet, the combined Korean Air is projected to increase passenger capacity by more than 55% and cargo capacity by more than 10% from current levels, securing global competitiveness at around 15th in passenger traffic, fifth in cargo and 10th overall worldwide.

Even after the merged carrier launches on Dec. 17, the company plans to continue improving profitability by integrating management resources and streamlining operations. In the passenger business, it will optimize flight schedules by eliminating overlapping routes and strengthening connections, while significantly expanding sales of high-margin flights originating in the Americas. In the cargo business, it will absorb Asiana Airlines' belly cargo capacity on passenger jets to expand shipping capability, while concentrating its existing dedicated freighters on high-yield regions to improve operational efficiency.

After the Asiana Airlines merger, the combined Korean Air is targeting annual revenue of about 23 trillion won and expects to generate synergies of about 300 billion won a year.