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Korean Air to buy 100 new aircraft

June 16, 2015
A321NEO

A321NEO

By Kim Rahn

Korean Air will buy 100 next-generation aircraft from 2019 ― 50 from Airbus and 50 from Boeing.

This is the first time for a Korean carrier to buy such a large number of aircraft at once.

The company said Tuesday that it has signed memorandums of understanding (MOU) with the two aircraft makers during the Paris Air Show.

Chairman Cho Yang-ho of Hanjin Group, the parent group of Korean Air, Hanjin KAL Executive Vice President Cho Won-tae, Airbus CEO Fabrice Bregier and Boeing Commercial Airplanes CEO Ray Conner took part in the signing ceremonies.

According to the MOUs, the carrier will buy 30 A321NEO planes from Airbus and have the right to purchase 20 more. It will also buy 30 B737MAX-8 aircraft and have the rights for another 20. Korean Air will spend about 13 trillion won ($12.2 billion) on the deals. Aircrafts will be delivered gradually between 2019 and 2025.

The A321NEO and B737MAX-8 are for short- or mid-haul operations. Some of them will replace the carrier’s old B737NG planes, while the rest will become a new supply to cope with growing demand. The carrier currently has 124 passenger planes and 27 cargo ones.

“The huge purchase will help us gain a foothold for a second leap along with the 50th anniversary of our establishment in 2019,” a Korean Air official said.

“The next-generation aircraft will also be safer and more environment-friendly than older ones. They are important for sustainable growth and environmental protection efforts.”

With state-of-the-art technology, the A321NEO consumes 15 percent less fuel than similar-sized older aircraft and emits less carbon. The maintenance cost is also lower.

The B737MAX-8 also offers increased efficiency with advanced-technology parts such as winglets, helping carriers save fuel cost by more than 20 percent and operational cost per seat by 8 percent.

B737MAX

B737MAX

Korean Air also signed an MOU with Pratt & Whitney for PW1100G-JM engines that will be installed in the new Airbus planes.

Along with the new aircraft, Korean Air decided to buy two more B777-300ER planes, a type which it already operates.

“We’ll introduce other new aircrafts for long-haul operations as well to create a young and high-tech fleet, becoming a global leader in the airline industry,” the official said.