Boeing Nears $6 Billion Deal for 777X Jets with Korean Air

3 months ago Editor

Boeing is close to finalizing a sale of up to 30 777X jets to Korean Air, potentially worth $4 billion to $6 billion. The deal, expected to be announced at the Farnborough Airshow, could strengthen Boeing’s position after Korean Air’s recent Airbus order.

Boeing is on the verge of securing a significant deal with Korean Air to sell up to 30 of its advanced 777X jets. This potential transaction, valued between $4 billion and $6 billion, could be finalized at the upcoming Farnborough Airshow, according to industry sources.

Korean Air, South Korea’s largest airline, has been in discussions with Boeing for months. This comes after the airline surprised the industry in March by ordering 33 A350 jets from Airbus, Boeing’s European competitor.

The new deal could involve 20 to 30 777X aircraft, each worth approximately $198 million after typical market discounts. “We are discussing with manufacturers but nothing has been confirmed yet,” stated a spokesperson from Korean Air. Boeing declined to comment on ongoing commercial discussions, deferring to the airline for details.

This fleet review is part of Korean Air’s broader strategy, which includes acquiring nearly two-thirds of its smaller domestic rival, Asiana Airlines, for around $1.4 billion. The European Union approved this acquisition in February, and U.S. approval is expected by the end of October.

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In April, Korean Air Chairman Walter Cho expressed satisfaction with Boeing’s 777 jets, and by June, he indicated that the airline was weighing options between the smaller Boeing 787 and more Airbus A350s. However, industry sources now suggest that the focus has shifted back to the 777X.

The 777X, the largest twin-engined jet in the industry with around 400 seats, has faced a five-year delay due to certification issues. Securing this order would be a significant boost for Boeing, even though the Farnborough Airshow is not expected to yield many major orders this year.