Korean Air announced plans for a $70 trillion investment in the United States immediately after the conclusion of the Korea-U.S. summit. The airline will purchase 103 next-generation, fuel-efficient aircraft from Boeing and will acquire aircraft spare engines and maintenance services from GE Aerospace.
Cho Won-tae, chairman of Hanjin Group, met on the 25th (local time) at the Willard Hotel in Washington, D.C., with Stephanie Pope, president and chief executive officer (CEO) of Boeing Commercial Airplanes, and RUSSELL, president and CEO of GE Aerospace's institutional sector for commercial engines and services, where they signed a memorandum of understanding (MOU) for the purchase of 103 Boeing aircraft and a separate MOU for the introduction of 19 spare engines and maintenance services.
Korean Air will invest $36.2 billion (approximately 50.4 trillion won) to sequentially introduce the following aircraft by the end of 2030: 20 units of the 777-9, 25 units of the 787-10, 50 units of the 737-10, and 8 units of the 777-8F cargo plane.
Korean Air noted, "This is part of a proactive investment strategy in preparation for growth after the merger with Asiana Airlines," adding, "Given that the delivery of aircraft has been delayed due to the pandemic, major airlines are pulling forward aircraft order timings, which led to the establishment of a proactive aircraft investment strategy extending into the mid to late 2030s."
GE Aerospace and CFM agreed to purchase spare engines for 11 and 8 units, respectively. Additionally, Korean Air will receive engine maintenance services for 28 aircraft from GE Aerospace over a 20-year period, with costs estimated at $690 million (approximately 1 trillion won) and $13 billion (approximately 18.1 trillion won).
Korean Air stated, "As the representative national airline, we will fulfill our role as a critical consolidation link between Korea and the United States through our passenger and cargo transportation, while also contributing to the enhancement of the friendly relations between Korea and the U.S. through continuous investments in the United States."
Meanwhile, 15 CEOs from major domestic corporations participated as an economic delegation in this Korea-U.S. summit. Ryu Jin, chairman of The Federation of Korean Industries, said at the 'Korea-U.S. Business Roundtable' held in Washington, "Korean corporations are planning large-scale investments of $150 billion (approximately 208.7 trillion won) in the United States," adding, "This is to drive both the U.S. and global markets and to usher in a new era of manufacturing renaissance."