Boeing and Korean Air have announced a deal valued at approximately $36 billion (£24 billion) for the purchase of 103 aircraft, including the 787, 777, and 737 models. This agreement, publicized on Monday, comes at a significant time as the South Korean airline is set to modernize its fleet amidst its merger with Asiana Airlines, according to Korean Air CEO Walter Cho.
The announcement of the deal coincides with a meeting between South Korean President Lee Jae Myung and U.S. President Donald Trump, where discussions included the 15% tariffs imposed by the U.S. on imports from South Korea in July. The agreement was revealed during a gathering of government and business leaders from both nations, which included U.S. Commerce Secretary Howard Lutnick and South Korea’s Trade Minister Kim Jung-kwan.
As part of this deal, Korean Air plans to acquire 50 Boeing 737-10 jets, 45 long-range airplanes, and eight Boeing 777-8 freighter cargo planes. The agreement is expected to create around 135,000 jobs in the U.S., where Boeing employs over 170,000 workers globally. Notably, this marks the completion of over 150 orders and commitments for Boeing aircraft from Korean Air in the current year.
Furthermore, on the same day, Hyundai Motor Group announced plans to increase its investment in the U.S. from $21 billion to $26 billion and intends to build a facility capable of producing 30,000 robots annually.
Korean Air’s agreement follows similar announcements from other countries negotiating agreements with the Trump administration, including a recent decision by Japan to purchase 100 Boeing jets. Prior to this, Indonesia’s flag carrier Garuda agreed to buy 50 jets to help mitigate U.S. tariffs.
In recent years, Boeing has faced various challenges, including two fatal crashes and a production slowdown due to a significant worker strike. Nonetheless, the company’s sales have recently surpassed those of its European competitor, Airbus.
Source: https://www.bbc.com/news/articles/cgm2kv2erxlo?at_medium=RSS&at_campaign=rss