Korean Air finalizes $32 bln aircraft deal with Boeing, GE

SEOUL

Korean Air has finalized a deal to purchase up to 50 Boeing aircraft, the United States has said, a move that comes as President Donald Trump seeks to boost American manufacturing.

Commerce Secretary Howard Lutnick hosted a signing ceremony for the agreement valued at around $32 billion between Korean Air and US aviation giant Boeing, as well as GE Aerospace.

"The agreement covers Korean Air's purchase of up to 50 widebody aircraft manufactured by Boeing using GE Aerospace engines," the U.S. Commerce Department said.

Korean Air last year announced an order for 40 Boeing 787 and 777X wide-body aircraft at Britain's Farnborough Airshow, in good news for the embattled U.S. aviation giant.

The deal at the time included an option for 10 more 787 planes.

"President Trump and I are dedicated to launching a new era for American manufacturing," Lutnick said in a statement.

He added that his department "remains committed to supporting these endeavors that will fuel our nation's economic resurgence."

The announcement comes as the Trump administration has been imposing tariffs on countries and sectoral imports, while threatening further levies, in part to boost domestic industries.

As of July 2024, the Seoul-based carrier expected the first delivery from the deal to be in 2028.

Boeing has been hit by manufacturing backlogs and safety concerns.

In January last year, a fuselage panel blew out of a 737 MAX flown by Alaska Airlines, forcing the plane to make an emergency landing.