Boeing Close to Securing Major 777X Jet Deal with Korean Air

Boeing is on the verge of sealing a deal with Korean Air for up to 30 of its 777X jets, valued between $4 billion and $6 billion, with the agreement potentially being finalized at the upcoming Farnborough Airshow in July. This development follows Korean Air’s recent purchase of 33 A350 jets from Airbus, Boeing’s chief competitor.

The discussions between Boeing and Korean Air, South Korea’s leading airline, indicate a significant return to Boeing for their long-haul fleet needs after their surprising Airbus order in March. The deal, which could include 20 to 30 Boeing 777X aircraft, each priced at about $198 million after typical discounts, represents a substantial investment in Boeing’s latest upgrade of the 777 mini-jumbo.

This potential order is part of a broader fleet review by Korean Air as it moves to acquire a controlling stake in Asiana Airlines, a smaller domestic competitor, for approximately $1.4 billion—a merger that has already received approval from the European Union and is expected to be cleared by U.S. regulators by October.

The Boeing 777X, known for being the largest twin-engine jet in the industry with around 400 seats, has faced delays entering service, including certification hurdles extending its launch by five years. However, the new fleet could significantly boost Boeing’s position in the market, particularly as the Farnborough Airshow approaches, a venue traditionally known for major industry announcements and deals.

Despite ongoing corporate challenges at Boeing, Korean Air remains a committed customer, with its Chairman Walter Cho expressing satisfaction with the performance of their existing 777 fleet. The final details of the deal are still being discussed, and while an agreement by the July airshow would be a significant achievement for Boeing, the industry does not expect a major influx of orders this year due to various global economic pressures.