By Mauro Orru
Korean Air Lines said it would sign a contract with Airbus to procure 33 A350 wide-body jets in a deal valued at $13.7 billion, as the airline seeks to strengthen its long-haul fleet while it gradually retires older aircraft.
The South Korean flag carrier said Thursday that the deal with the European plane maker is set to include 27 A350-1000s and six A350-900s, which it plans to deploy on routes such as Seoul to New York. While Korean Air said the deal would be valued at $13.7 billion, buyers typically receive steep discounts for big orders.
The A350-1000 is the largest aircraft in Airbus’s A350 family type and can accommodate from 350 to 410 passengers in a standard three-class configuration. The A350-900 is roughly 7 meters shorter, and typically seats 300 to 350 passengers in a three-class layout.
Korean Air said the deal would also help in its efforts to integrate rival Asiana Airlines after the European Union last month granted conditional approval for the $1.29 billion acquisition.
On Thursday, Japan Airlines said it plans to buy 42 airplanes from Airbus and Boeing to be delivered over the next decade, seeking to expand its full-service and low-cost carrier businesses to capture international travel demand.
The Japanese carrier said it intends to acquire 21 A350-900 and 11 A321neo planes from Airbus and 10 787 jets from Boeing, though it didn’t disclose financial details.
The potential orders for Airbus come as rival Boeing is grappling with the fallout from an Alaska Airlines emergency landing in January after a section of the aircraft ripped away in midair, prompting a temporary grounding and immediate inspections of dozens of Boeing 737 MAX jets.
Write to Mauro Orru at [email protected]
(END) Dow Jones Newswires
March 21, 2024 10:16 ET (14:16 GMT)
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