Korean Air in Talks to Acquire Boeing 777X Jets Following Airbus Deal
Discussions Follow Major Airbus Order, Signaling Potential Shift in Supplier Dynamics
image source: Boeing
Korean Air is currently engaged in discussions regarding the potential purchase of at least 10 Boeing 777X jetliners, signaling a potential shift back to its traditional U.S. supplier after a recent major order with European rival Airbus, according to two industry sources familiar with the matter.
The talks between Korean Air and Boeing come in the wake of the airline’s announcement of an order for 33 A350 jets from Airbus, a move widely regarded as a significant breakthrough for the European planemaker into Korean Air’s predominantly Boeing-dominated wide-body fleet.
While discussions on the 777X between Korean Air and Boeing are ongoing, a third industry source with insight into the matter revealed that Korean Air is actively engaged in continuous discussions with Boeing regarding potential orders, although firm plans to acquire new 777s are not yet in place.
Chairman and CEO of Korean Air, Walter Cho, indicated the airline’s ongoing engagement with Boeing, stating, “We’re not done yet. We’re still talking with Boeing.” Cho expressed satisfaction with Boeing’s 777s, hinting at the possibility of future announcements regarding their acquisition.
The Boeing 777X, touted as the industry’s largest twin-engined jet with approximately 400 seats, has faced delays in entering service, attributed to various challenges including certification delays.
The potential acquisition of Boeing 777X jets comes amid Korean Air’s plans to acquire nearly two-thirds of its smaller domestic rival, Asiana, for approximately $1.4 billion. However, the acquisition is contingent upon obtaining antitrust approvals, including those from the United States and Europe.
While the European Union has granted conditional approval for the acquisition, certain conditions, such as the sale of Asiana’s cargo business, need to be fulfilled before final approval is granted. A second round of bids for Asiana’s cargo business is scheduled, with four South Korean low-cost carriers participating in the bidding process during the initial round.
Korean Air’s deliberations on the acquisition of Boeing 777X jets underscore the airline’s strategic approach to fleet expansion and modernization amid a dynamic and evolving aviation landscape. Stay tuned for further developments as discussions progress between Korean Air and Boeing.
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