Korean Air signs MOU with Airbus and Boeing for 17 new aircraft

Korean Air has signed MOU’s (Memorandum of Understanding) with Airbus and Boeing respectively to purchase a total of 17 aircraft. The deal includes eight A380 from Airbus, and seven B777, 2 B747-400ERF from Boeing.

Korean Air’s new fleet investments are in line with the Korean government’s plans to make Seoul the logistics hub of Northeast Asia. The new aircraft investments are also part of Korean Air’s long-term strategy to simplify and modernize the fleet, which is already one of the youngest (average 6.4 years)  in the industry.

As for the Airbus 555-seater A380, deliveries to Korean Air are scheduled to begin in late 2007. Out of eight A380 signed in MOU, five are firm orders and three are options. A380 is a fuel-efficient super-jumbo jet being developed by Airbus  and planned to be unveiled in 2006. Taking in its first A380 into the fleet, Korean Air expects to strengthen its competitive edge by lowering the  operating costs and compete effectively on the long-haul routes such as the trans-Pacific ones.

Seven Boeing 777's, proven to be cost-efficient and effective for operation on long-haul flights, are scheduled to be delivered to Korean Air and will  gradually replace Korean Air’s B747-400 passenger aircraft from 2004, which the airline hopes will further enhance the competitiveness for Korean Air through lower operating costs.

The new B747-400 Extended Range Freighter can operate up to 900 km farther than the current model and will replace Korean Air’s MD11 freighter  aircraft. The B744ERF is capable of operating non-stop to long-haul  destinations, which will enhance service and improve aircraft utilization. The purchase of the new aircraft is Korean Air’s strategic investment that is part  of its long-term corporate plan of becoming the number one cargo carrier in the world.