Korean Air Signs $32.7B MoU for 777 and 787 Widebody Jets
Korean Air is moving closer to finalizing a major memorandum of understanding reached at Farnborough Airshow 2024, setting the stage for a transformative aircraft order and a strengthened strategic partnership with leading U.S. aviation companies.
At a signing ceremony held on March 21, 2025, senior representatives from the South Korean government, along with Boeing President and CEO Kelly Ortberg, GE Aerospace CEO Russel Stokes, and Korean Air chief Walter Cho, gathered to advance plans that underscore Korean Air’s ambition to become one of the world’s top ten airlines.
The MoU, which involves orders for 20 Boeing 777-9 and 20 Boeing 787-10 aircraft, has a total contract value of $32.7 billion, with options for an additional ten aircraft that could add another $24.9 billion to the deal. This landmark agreement, part of a broader effort to modernize Korean Air’s fleet and expand its long-haul capabilities, reflects the carrier’s long-standing commitment to innovation and operational excellence. As the partnership with Boeing and GE Aerospace deepens, the airline is preparing to boost its international presence by enhancing both passenger capacity and fuel efficiency with these next-generation widebody jets.
In a separate yet related arrangement, Korean Air, together with GE Aerospace, is set to finalize a firm order for eight spare engines, along with options for two additional engines and a comprehensive maintenance services package valued at $7.8 billion. This component of the deal is crucial in ensuring that the airline maintains the highest levels of operational reliability and safety across its expanding fleet. The dual focus on aircraft acquisition and engine support services is designed to provide a balanced approach that not only modernizes the carrier’s fleet but also secures its long-term operational performance.
A spokesperson for the South Korean government emphasized that the signing ceremony is a testament to the country’s commitment to fostering robust ties with key U.S. aerospace leaders. The deal also highlights the South Korean government’s active role in supporting strategic partnerships that drive technological advancement and market competitiveness in the global aviation sector. This collaborative approach is expected to propel Korean Air forward, enhancing its ability to compete in an increasingly dynamic international market.
Korean Air’s plans were originally unveiled during the 2024 Farnborough Airshow, where the airline announced its intention to purchase up to 50 Boeing widebody aircraft. The deal not only signals a significant investment in the carrier’s future but also marks a new era in its history following the merger with Asiana Airlines. Recently, the airline introduced a refreshed livery and updated branding, which coincides with its strategic efforts to expand its network and optimize its fleet for improved service quality and efficiency.
South Korea’s Minister of Trade, Industry and Energy, Ahn Duk-geun, praised the collaboration, stating that the partnerships with Boeing and GE Aerospace will significantly strengthen Korean Air’s global market position. He expressed confidence that these initiatives would accelerate the carrier’s journey toward becoming one of the world’s leading airlines. With this historic MoU on the horizon, Korean Air is set to embark on a new chapter of growth and innovation, positioning itself to better serve an expanding network of destinations around the world while delivering an enhanced travel experience for its customers.
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