Boeing's Potential Deal with Korean Air Signals Shift in Aircraft Supplier Preference
July 13, 2024, 9:32 am
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Boeing is on the brink of sealing a deal with Korean Air for the sale of around two dozen 777X jets, marking a significant shift in the airline's traditional supplier preference. The deal, estimated to be worth between $4 billion to $6 billion, is expected to be finalized at the upcoming Farnborough Airshow in July, according to industry sources.
Korean Air, South Korea's largest carrier, has been in discussions with Boeing for months following a surprising order of 33 A350 jets from Airbus, Boeing's European rival, in March. The airline's CEO, Cho, had previously mentioned considering the Boeing 787 or more A350s, but recent talks have centered around the 777X model.
Despite the ongoing negotiations, details still need to be ironed out, and there is no guarantee that an agreement will be reached by the air show in July. The 777X, known for its large capacity of around 400 seats, has faced delays in entering service due to certification issues.
If the deal goes through, it would provide a much-needed boost for Boeing, especially as industry analysts predict a lack of major orders at the Farnborough Airshow this year. The potential agreement with Korean Air highlights the competitive landscape in the aviation industry and the importance of securing key partnerships.
On a separate note, Phoenix Aviation Capital and AIP Capital have announced an agreement to acquire ten CFM LEAP-1B engines, showcasing a strategic move to expand their portfolio of next-generation assets. The deal underscores the commitment of both companies to meet the evolving needs of global airline customers and enhance operational efficiency.
The collaboration between Phoenix Aviation Capital, AIP Capital, and CFM International reflects a shared goal of reducing environmental impact and lowering operational costs for airlines through advanced technology and exceptional service. This partnership further solidifies Phoenix's position in the market, with a portfolio of new generation aircraft and a significant orderbook with Boeing.
Overall, these developments in the aviation industry underscore the dynamic nature of the market, with airlines and lessors constantly seeking innovative solutions to meet the demands of an evolving industry landscape. The potential deal between Boeing and Korean Air, along with the engine acquisition agreement between Phoenix Aviation Capital and AIP Capital, exemplify the strategic partnerships driving growth and innovation in the aviation sector.
Korean Air, South Korea's largest carrier, has been in discussions with Boeing for months following a surprising order of 33 A350 jets from Airbus, Boeing's European rival, in March. The airline's CEO, Cho, had previously mentioned considering the Boeing 787 or more A350s, but recent talks have centered around the 777X model.
Despite the ongoing negotiations, details still need to be ironed out, and there is no guarantee that an agreement will be reached by the air show in July. The 777X, known for its large capacity of around 400 seats, has faced delays in entering service due to certification issues.
If the deal goes through, it would provide a much-needed boost for Boeing, especially as industry analysts predict a lack of major orders at the Farnborough Airshow this year. The potential agreement with Korean Air highlights the competitive landscape in the aviation industry and the importance of securing key partnerships.
On a separate note, Phoenix Aviation Capital and AIP Capital have announced an agreement to acquire ten CFM LEAP-1B engines, showcasing a strategic move to expand their portfolio of next-generation assets. The deal underscores the commitment of both companies to meet the evolving needs of global airline customers and enhance operational efficiency.
The collaboration between Phoenix Aviation Capital, AIP Capital, and CFM International reflects a shared goal of reducing environmental impact and lowering operational costs for airlines through advanced technology and exceptional service. This partnership further solidifies Phoenix's position in the market, with a portfolio of new generation aircraft and a significant orderbook with Boeing.
Overall, these developments in the aviation industry underscore the dynamic nature of the market, with airlines and lessors constantly seeking innovative solutions to meet the demands of an evolving industry landscape. The potential deal between Boeing and Korean Air, along with the engine acquisition agreement between Phoenix Aviation Capital and AIP Capital, exemplify the strategic partnerships driving growth and innovation in the aviation sector.