Korean Air and Boeing have just announced a deal for over 100 new aircraft, described as the biggest Boeing wide body order ever from an Asian carrier. Let’s take a look at the details…
In this post:
Korean Air orders 103 Boeing aircraft, from 737s to 777s
United States President Donald Trump and South Korea President Lee Jae Myung met yesterday, to discuss trade, among other things. As part of this, Korean Air announced plans to order up to 103 Boeing jets, including 20 Boeing 777-9s, 25 Boeing 787-10s, 50 Boeing 737 MAX 10s, and eight Boeing 777-8 Freighters.
This is of course a lot of aircraft we’re talking about, though there are a couple of caveats:
- This isn’t a firm order, but instead, it’s an “intent to purchase” these aircraft; all too often, those are part of some flashy headline, but don’t materialize as planned
- This isn’t an entirely new order, as some of these planes are conversions of existing orders; for example, the 737 MAX 10 order partly consists of conversions of 737 MAX 8 orders
This is Korean Air’s second major Boeing order within the past year or so, as the airline also recently placed a firm order for 20 Boeing 777-9s and 20 Boeing 787-10s. This order is intended for Korean Air to modernize its fleet and support growth, as it fully integrates operations with Asiana over the coming years.
Here’s how Korean Air CEO Walter Cho describes this:
“This agreement with our long-standing partners, Boeing and GE, marks a pivotal moment for Korean Air. Acquiring these next-generation aircraft is the core of our fleet modernization strategy, delivering significant gains in fuel efficiency and enhancing the passenger experience across our global network. This investment is also a critical enabler for our future as a merged airline with Asiana, to ensure that our combined carrier is one of the most competitive airlines in the industry.”
What this order means for Korean Air’s overall fleet plans
Korean Air sure has some major fleet modernization plans, at this point. Let’s talk about each aircraft type that’s part of this order (at least for the passenger fleet).
With this order for 20 Boeing 777-9s, Korean Air’s order for this aircraft is now up to 40 jets. That’s pretty substantial — it makes Korean Air the third largest customer for the aircraft, after Emirates and Qatar Airways. It also sounds like this will eventually become the carrier’s flagship aircraft, replacing Airbus A380s and Boeing 747-8s. However, interestingly, Korean Air also has 27 Airbus A350-1000s on order, which will have fairly similar capabilities.
Korean Air is also increasingly going all-in on the Boeing 787-10, as the airline now has 65 of these planes on order. The jet has great unit costs, and as we’ve seen the aircraft’s range improved over time, its ability to be a reliable and versatile option across the Pacific has also improved.
The Boeing 737 MAX 10 is also a plane with great unit costs. The huge fleet of those aircraft will (eventually) complement 10 Airbus A220-300s, 56 Airbus A321neos, and 18 Boeing 737 MAX 8s. Korean Air is certainly putting a big emphasis on higher capacity narrow body jets.
What stands out to me most is the pure amount of fleet modernization and growth we’re going to see at Korean Air. The legacy Korean Air fleet currently consists of around 130 aircraft, and the legacy Asiana fleet currently consists of around 70 aircraft. The airline group now has roughly 260 planes on order.
When you consider that many existing planes are “latest generation,” the amount of growth that Korean Air is planning is kind of wild.
Bottom line
Korean Air has just announced its intent to purchase 103 Boeing aircraft, including the 777-9, 787-10, and 737 MAX 10. For the 777-9 and 787-10, these represent incremental orders, while this is the first order for the 737 MAX 10 (though the airline already flies 737 MAX 8s).
Korean Air has a huge amount of fleet modernization planned, and I’m curious to see how it all plays out…
What do you make of Korean Air’s latest Boeing aircraft order?
Looks like they are trying to modernize, and keep with the newer, more fuel, and performance efficient aircrafts. This is smart.
The growth that they're pondering is pretty staggering.
Assuming all of the A330s, 772ERs, 773As, 748is, and A380s are all replaced by their current outstanding orders: that still leaves 85 incoming widebodies for expansion purposes!
Even if we also assume the replacement of their 773ERs, which aren't that old and are undergoing refurbishment, that's still more than 60 widebodies for growth. Wild.
it is beyond impressive and it will make ICN one of the world's most connected cities by air.
While some cling to Japan as being the epicenter of Asian aviation, South Korea has laid a future for itself that rivals and may surpass places like Dubai for global connectivity.
I wish I could type a clown emoji in a comment
While they appear to have the 3rd largest 77X order for now, they can still be overtaken by China as a whole as they're rumored to order 500 aircraft. I can also see CX exercising their options and even ordering more.
Moving on, I wonder what aircraft they'll keep from Asiana once we start seeing fleet integration aside from the A350s. The latter's A330s are all leased so they can easily get rid of them...
While they appear to have the 3rd largest 77X order for now, they can still be overtaken by China as a whole as they're rumored to order 500 aircraft. I can also see CX exercising their options and even ordering more.
Moving on, I wonder what aircraft they'll keep from Asiana once we start seeing fleet integration aside from the A350s. The latter's A330s are all leased so they can easily get rid of them and they can also eliminate their 772ERs as well as their own 300s. So that leaves the A321neos and they're in an interesting spot; do they plan on operating both engine types or operate a single type for simplicity?
Lastly, how are they going to fit all those a/c at ICN?!
One is minded to ask Tim …. Tim, is extremely willing to offer an opinion and more likely to respond than some.
Tim, on the right side of the pond it appears that Tango Trump, is playing a blinder for the U.S. economy. Bump up tariffs on foreign imports, then reduce the tariffs if a ‘country’ buys a large quantity of U.S. manufactured goods.
Could this (as is suspected here) be a reason for...
One is minded to ask Tim …. Tim, is extremely willing to offer an opinion and more likely to respond than some.
Tim, on the right side of the pond it appears that Tango Trump, is playing a blinder for the U.S. economy. Bump up tariffs on foreign imports, then reduce the tariffs if a ‘country’ buys a large quantity of U.S. manufactured goods.
Could this (as is suspected here) be a reason for the number of Boeing orders from foreign buyers?
Also, are Boeing actually going to be able to capitalise on Trumps strategy?
Can they actually deliver the quantities in a timely manner?
Many thanks in anticipation ….
I have said repeatedly that Trump is Boeing's #1 salesman. They do have tens of thousands of high quality manufacturing jobs in the US. Whether these companies would have ordered these numbers of aircraft from Boeing anyway is anyone's best guess.
I would far rather Trump sell planes for Boeing than run the risk of a tax-payer bailout.
Boeing has to decide if they can deliver what they sell.
I do think they have...
I have said repeatedly that Trump is Boeing's #1 salesman. They do have tens of thousands of high quality manufacturing jobs in the US. Whether these companies would have ordered these numbers of aircraft from Boeing anyway is anyone's best guess.
I would far rather Trump sell planes for Boeing than run the risk of a tax-payer bailout.
Boeing has to decide if they can deliver what they sell.
I do think they have turned the corner on their turnaround.
I think the real question mark is with the MAX 7 and 10 and it comes down to the FAA's unwillingness to give Boeing a pass on any more exemptions.
Just as I thought, both of you are dinosaurs but still naive.
Boeing makes money selling WMDs to both sides of the pond.
Why do you think there is always a war going on somewhere for decades.
Ukraine drones doesn't build itself.
Israeli Apache and it's weapons didn't come from Benny. But Benny sure is using a lot of Apache in the past year.
NATO equipments..... you get the picture.
Wartime budgets...
Just as I thought, both of you are dinosaurs but still naive.
Boeing makes money selling WMDs to both sides of the pond.
Why do you think there is always a war going on somewhere for decades.
Ukraine drones doesn't build itself.
Israeli Apache and it's weapons didn't come from Benny. But Benny sure is using a lot of Apache in the past year.
NATO equipments..... you get the picture.
Wartime budgets are the holy grail.
Peacekeeping as an excuse is a close runner up.
Boeing isn't just about 737 or 777.
Boeing is far from the US or world's largest defense contractor.
and the reason why UA has lost so much money over the past few years is because they have done very poorly on their commercial aircraft operations.
Tim nobody brought up UA.
Nor are we discussing other defense contractors, who also profit from these proxy wars.
This is just to answer your alter ego about Boeing capitalizing on Trump, that Boeing makes more money selling weapons than 777.
Boeing along with Raytheon, Northrop, Lockheed are all part of the MIC.
Steady on now Esk, your knickers really are in a twist just now …. :-)
Do you actually think that neither Tim, nor I, actually do not know the makeup of the Boeing Corporation?
Really now bro, you have been following the likes of that Plain Jane and her southern belle mucker down the road to trolldom for far too long. You are being wound up like a cheap Chinese alarm clock old bean …. :-)
The biggest order by an Asian carrier? Gee, I thought India was part of Asia!
KE + OZ currently have just over 200 aircraft and 260 on order including 140 WBs: 65 78Xs, 27 A35X, 40 779s, 8 77Fs while DL only has 28 WBs on order. Quite a bit of an imbalance and growing.
ICN is an excellent #2 hub for Asia. It’s only 20% smaller than HND and almost nearly as well positioned geographically with plenty of room to grow.
Weird comparison to make about size of HND vs ICN. HND is mostly domestic traffic still. ICN is majority international, their size difference needs to be head to head.
Also, hub size matters too, HND is a dual hub of ANA and JAL, ICN is primarily KE now after the merger.
Main difference being that Japan has literally dozens of secondary and tertiary cities that foreign travelers want to visit. The beauty of HND is that travelers can connect between Europe/North America and the rest of Asia, or to elsewhere in Japan. If you want to do the latter in Korea, you'd need to take a bus to GMP.
Exactly Jessica and Japan's GDP is 234% larger than South Korea's. Japan also still has other important airports including NRT.
Uhhh.. fake Eskimo, forgot to change user names?
I was thinking to ignore your first fake name comment since it was baiting Tim Dunn.
But this comment is just too dumb to even bait Tim.
now that the eskimo got kicked off Alaska's tail, is he trying to find his identity with multiple users?
and the comparison between DL and KE's order book is also meaningless. DL has another 20 Airbus widebody options and has been receiving more widebodies than any other US airline for the past 2 years. and DL is expected to place another widebody order. When you are one of the largest and financially strongest airlines in...
now that the eskimo got kicked off Alaska's tail, is he trying to find his identity with multiple users?
and the comparison between DL and KE's order book is also meaningless. DL has another 20 Airbus widebody options and has been receiving more widebodies than any other US airline for the past 2 years. and DL is expected to place another widebody order. When you are one of the largest and financially strongest airlines in the world, you get airplane salesman coming to you.
and ICN is simply a larger international hub than anything else in Asia and is only growing larger.
and with an announcement about new service to Riyadh expected (Bastian is there for a development conference) with HKG and MEL coming and another dot or two in Europe, DL seems to have no shortage of aircraft to expand its network - both domestically and internationally
Riyadh? Watch out Nuuk.
UA's TPAC is bigger than AA & DL combined. Looks like KE will continue doing the heavy lifting for Skyteam in Asia given the six year backlog for wide body aircraft.
HKG and MEL, two cities United has served for years. Bo-ring!
Delta made 10X more money flying the Pacific over the past 10 years as United did.
You reinforce that you and United's execs don't understand United's true goal as a publicly traded company which is to make the most money for its shareholders AND THEN to fly as many exotic destinations as it can find to work
All of Korea airlines orders always start as Intents and then are firmed up usually within the following 6 months
as part of his tariff plan, Trump is Boeing's #1 salesman.
and, yes, ICN is expanding on its position as the best hub in Asia. Larger terminals, more runways, and flights to places that other hubs don't serve.
ICN is a terrible hub. Terminal 1 is a dinosaur, and Terminal 2 seems years older than it is. Transit is cumbersome; the airport is inconvenient to central Seoul. Never mind the fact that using it necessitates flying Skyteam (the weakest alliance) over the Pacific.
Asia's best hubs are Haneda, Taoyuan and Hong Kong, in that order.
"Asia's best hubs are Haneda, Taoyuan and Hong Kong, in that order."
Based on the declarative opinion of an internet nobody. (eye roll)
The "best hub" is the hub that gets any given passenger, where they want to go most efficiently. That's completely subjective.
While it is subjective, only Taiwanese would put Taoyuan on such list, and this is coming from someone who thinks TPE is underrated. At least the super overrated SIN isn't there either.
I love NRT. And I miss NW hubs in NGO and KIX back in the day.
@Jessica
Proximanova is now pretending to be a woman.
"visualise yourself flying Qsuites or Air France or JAL or something of that kind! ;)"
Asian tourists feel increasingly welcome in the United States, and Asian cargo shipped on KAL is bound to increase with tariff barriers becoming insignificant. The future is certainly bright, and those Boeing planes will no doubt turn into firm orders.
Will the 737 Max 10s have the newer 2-2 lieflat business class in their A321neos? Or will it be standard recliner like their Max 8s?
@ yoloswag420 -- It hasn't been announced one way or another, so we'll have to wait and see.
This is not an order but a PR stunt to butter up you know who. Cane right alongside the other S. Korean stunt of asking you know who to make peace in the peninsula (because, you know, the first meeting with N Korea yielded so much) and build a golf course there.
In other words, it has no value at this point and is definitely not newsworthy (and part of the announcement is tied to...
This is not an order but a PR stunt to butter up you know who. Cane right alongside the other S. Korean stunt of asking you know who to make peace in the peninsula (because, you know, the first meeting with N Korea yielded so much) and build a golf course there.
In other words, it has no value at this point and is definitely not newsworthy (and part of the announcement is tied to the fact that there are some files that need to be covered up and it's an attempt to get the media to stop taking about them).
Ben writes …. “Korean Air has a huge amount of fleet modernization planned, and I’m curious to see how it all plays out” …. Anyone on the right side of the pond might well think …. “Dream on Korean Air, will Boeing ever deliver any of the order this century?” …. :-)
Here and only here is the first time I read that it’s still a plan. Thanks, Ben. Much love t you & yours
Everyone else too focused on the numbers (in excess of $50 billion with GE engines at list prices) to take a step back
The new livery looks so cheap. Makes sense that they are a partner of Delta.
This Delta obsession needs to stop.
Does Delta decide the KE livery? I don't think so.