Seoul, March 22
Korean Air Lines, South Korea's national carrier, will acquire some 20 aircraft from US Boeing and procure spare engines from GE Aerospace, in a combined deal worth US$32.7 billion, Seoul's industry ministry said.
A pre-signing ceremony took place at the Department of Commerce in Washington, attended by Cho Won-tae, chairman of Hanjin Group, Korean Air's parent firm; Kelly Ortberg, Boeing's president and CEO; and Russell Stokes, president and CEO of GE Aerospace Commercial Engines and Services.
Also present at the event were South Korean Industry Minister Ahn Duk-geun and U.S. Secretary of Commerce Howard Lutnick, reports news agency.
Under the agreement, Korean Air will acquire 20 Boeing 777-9 and 20 Boeing 787-10 aircraft by 2033, with an option to purchase an additional 10 aircraft. The two companies agreed to swiftly proceed with the deal, valued at $24.9 billion.
Korean Air and GE Aerospace agreed to a contract worth $7.8 billion for the procurement of eight space engines and engine maintenance services.
At the ceremony, Ahn expressed hope for the agreement to help further facilitate broad exchanges between the allies, pledging that South Korea will actively support cooperation between industries in both countries.