According to industry insiders, Boeing is close to finalizing a deal to sell 777X aircraft to Korean Air, valued between $4 billion and $6 billion, potentially to be confirmed at the Farnborough Airshow in July.
Korean Air, South Korea's largest airline, has been negotiating with Boeing for months to restore its traditional long-haul aircraft supplier relationship after unexpectedly ordering 33 A350 planes from Boeing's European competitor Airbus in March.
Insiders say this potential new order could involve up to 20-30 777X planes, with each plane valued at around $198 million after market discounts, according to Cirium Ascend's projected delivery prices. A Korean Air spokesperson said, "We are in discussions with the manufacturer, but nothing has been confirmed yet." Boeing stated that it does not comment on commercial discussions and referred inquiries about Korean Air's intentions to the airline.
Korean Air is conducting a fleet review and also plans to acquire nearly two-thirds of its smaller domestic rival Asiana Airlines for about $1.4 billion. The EU approved the deal in February, and Korean Air expects U.S. approval by the end of October. After Airbus's breakthrough in Europe, Reuters reported in April that Korean Air was also discussing a new Boeing order, focusing on the 777X, an upgraded version of the smaller jumbo 777. In April, when asked about Boeing's ongoing corporate crisis, Korean Air Chairman Walter Cho told CNBC that Korean Air was satisfied with its 777 planes, which remain his primary focus at present.
