Boeing nearing deal to sell 777X jets to Korean Air, sources say (updated)

ASIANA AIRLINES

11/07/2024 21:08

(Adds details on Korean Air, Boeing, 777X plane, Farnborough
Airshow, paragraphs 6-9)

        * 
      Korean nears Boeing deal after ordering Airbus jets,
sources say
    

        * 
      Potential order could involve 20 to 30 777X jets, sources
say
    

        * 
      Fleet review comes amid plans to acquire control of Asiana
    

  
       July 11 (Reuters) - Boeing  BA.N  is nearing a potential
sale of some two dozen 777X jets to Korean Air  003490.KS  in a
roughly $4 billion to $6 billion deal that could be finalised as
early as July's Farnborough Airshow, industry sources said.
South Korea's largest carrier has been in talks over a potential
return to its traditional supplier of long-haul aircraft for
months after placing a surprise order for 33 A350 jets from
Boeing's European rival Airbus  AIR.PA  in March.
    The sources said the potential new order could involve as
many as 20 to 30 of the 777X aircraft, which are worth some $198
million each after typical market discounts, according to
estimated delivery prices from Cirium Ascend.
    "We are discussing with manufacturers but nothing has been
confirmed yet," an airline spokesperson said.
    Boeing said it does not comment on commercial discussions
and referred any queries on Korean's intentions to the airline.
    The fleet review comes as Korean plans to purchase nearly
two-thirds of smaller domestic rival Asiana  020560.KS  for
about $1.4 billion. The European Union approved the tie-up in
February and the airline has indicated it expects U.S. approval
by the end of October. Following the breakthrough by Europe's
Airbus, Reuters reported in April that Korean was also
discussing a new Boeing order focused on the 777X, an upgrade of
the 777 mini-jumbo.
    Asked in April about Boeing's ongoing corporate crisis,
Korean Air Chairman Walter Cho told CNBC that Korean was a
"satisfied customer of their 777s and that's what I'm looking at
right now".
    In June, Cho told Bloomberg News the airline was weighing a
choice between the smaller Boeing 787 or more A350s. Since then,
talk of a potential Boeing deal once again has focused mainly on
the 777X, industry sources said. Details still have to be ironed
out and there is no guarantee talks will conclude by the July
22-26 air show in Britain.
    The 777X is the industry's largest twin-engined jet with
around 400 seats but its entry into service has been delayed by
five years due to problems including certification delays. An
order for the delayed 777X would be a boost for Boeing though
Farnborough is not expected to produce a major slew of orders
for manufacturers this year, industry analysts said.

(Reporting by Allison Lampert, Lisa Barrington, Tim Hepher;
Editing by Richard Chang and Matthew Lewis)
((mailto:tim.hepher@thomsonreuters.com; +33 1 49 49 54 52;
Reuters Messaging: rm://tim.hepher.thomsonreuters@reuters.net/))