 "The new logo of Korean Air is seen on its plane during an event in Gimpo, South Korea, March 11, 2025. Reuters")
Korean Air is reported to have signed its largest-ever aircraft purchase coinciding with the state visit of South Korean President Lee Jae Myung to Washington.
According to Reuters, the airline committed to acquiring 103 Boeing airplanes on Monday in what industry observers described as a strategically timed announcement. Sources told the news agency that the deal, valued at more than $36 billion for the aircraft alone, would comprise a mix of Boeing 777s, 787s and 737s.
The ceremony in Washington was said to have drawn high-level participants, including Korean Air’s Chairman and CEO Walter Cho, Boeing Commercial Airplanes’ chief Stephanie Pope and US Commerce Secretary Howard Lutnick.
Media outlets noted that the presence of both political and business leaders highlighted the order’s significance in strengthening ties between the United States and South Korea, The Associated Press reported.
Partnership with GE Aerospace
Alongside the Boeing purchase, Korean Air was reported to have entered into a parallel agreement with GE Aerospace. This deal was described as covering both engine acquisitions and a long-term maintenance contract worth about $13.7 billion.
The airline confirmed that it would acquire 19 spare engines while securing 20 years of maintenance support for its fleet, a move seen as essential to sustaining operational reliability, The Associated Press said in a report.
Industry insiders suggested that a portion of the aircraft order would be used to re-equip Asiana Airlines, which is in the process of integration under Korean Air. Reuters highlighted that South Korea’s industry ministry had signaled earlier in the year that the airline was preparing to finalise a $32.7 billion arrangement involving Boeing and GE equipment, with Monday’s announcements representing the culmination of those plans.
Impact Shorts
More ShortsA strategic signal to Washington
The announcement appeared to align with a pattern in which nations negotiating with the Trump administration have unveiled significant Boeing orders. Reuters pointed out that the US aircraft manufacturer had recently secured a series of major global contracts, suggesting that the Korean Air purchase may also carry diplomatic overtones.
Korean Air’s official statement described the move as a “strategic investment in the U.S. market” that would strengthen the carrier’s competitiveness and foster deeper commercial ties. The airline added that deliveries of the new jets would be phased through 2030, cementing a long-term link between the two economies, The Associated Press said.
Founded in 1969 and now the largest airline in South Korea, Korean Air was portrayed as positioning itself for global expansion through the Washington agreements, while simultaneously reinforcing Seoul’s economic partnership with Washington.