A massive deal just landed, worth an eye-popping $36 billion. Korean Air, a major airline, announced it will buy 103 planes from Boeing. This huge purchase comes at a interesting time. It appears to coincide with pressure from President Donald Trump. He wants more of America’s trade partners to do business with US companies.
The South Korean airline plans to modernize its fleet with these new passenger and cargo jets. The order includes a mix of Boeing’s 787, 777, and 737 models. This move is crucial for Korean Air to stay competitive, especially after its merger with Asiana Airlines. Walter Cho, Korean Air’s CEO, stated the deal is important for the company’s standing in the world market. Specifically, the order adds 50 Boeing 737-10s, 45 long-range aircraft, and eight 777-8F cargo planes. Boeing, for its part, estimates this deal will support over 135,000 jobs in the United States.
This agreement was announced just hours after South Korean President Lee Jae-myung met with President Trump. Their meeting in Washington D.C. included talks about trade. One hot topic was the 15% import tariff the US placed on South Korean goods in July. The signing ceremony for the aircraft deal happened during a gathering of government and business leaders from both nations. US Commerce Secretary Howard Lutnick and South Korean Trade Minister Kim Jong-kwan were there to witness it.
The Boeing purchase isn’t the only major financial commitment from South Korea. Hyundai Motor Group, a car manufacturer, also boosted its US investment. They raised it from $21 billion to $26 billion. Hyundai even plans to build a new robot factory. This factory will produce 30,000 robots each year. In a related deal, Korean Air also signed an agreement with GE Aerospace for $13.7 billion. This covers the engines needed for its new fleet.
These deals fit a larger pattern. Several countries involved in trade talks with the US government have made similar large purchases. Japan, for example, ordered 100 Boeing planes in July. Garuda Indonesia also bought 50 jets. These large orders often happen when countries are looking to ease pressure from US tariffs.
Boeing has faced tough times in recent years. There were deadly 737 crashes in Indonesia and Ethiopia. A part even fell off a plane mid-air in 2024. The company also saw a big strike in the US. Despite these setbacks, this latest deal with Korean Air shows Boeing is making a strong push. It’s fighting to win back sales against its main rival, Europe’s Airbus.
Source BBC