Korean Air in talks to buy Boeing 777X jets, sources say (updated)

ASIANA AIRLINES

24/04/2024 12:17

(Repeats to add pix)
    By Tim Hepher, Joyce Lee and Allison Lampert
       April 24 (Reuters) - Korean Air  003490.KS  is in talks
over the purchase of at least 10 Boeing  BA.N  777X jetliners in
a potential tilt back towards its traditional U.S. supplier
after placing a major order with European rival Airbus  AIR.PA ,
two industry sources said.
    The discussions come weeks after Korean announced an order
for 33 A350 jets from Airbus in what was widely seen as a
breakthrough for the European planemaker into the flag carrier's
Boeing-dominated wide-body fleet.
    The sources said discussions between Korean Air and Boeing
on the 777X, an upgrade of the 777 mini-jumbo already used by
South Korea's largest carrier, were ongoing.
    A third industry source with knowledge of the matter said 
Korean is in continuous discussions with Boeing on potential
orders, but does not have immediate firm plans to take new 777s.
    Korean Air did not have an immediate comment. 
    Boeing declined to comment on any commercial discussions and
referred queries about fleet planning to the airline.
    Earlier this month, Korean Air Chairman and CEO Walter Cho
told CNBC following the Airbus deal: "We're not done yet. We're
still talking with Boeing".
     Asked about Boeing's recovery from a broad corporate
crisis, he said: "We've been their customer, we've been their
user for a long, long time...a satisfied customer of their 777s
and that's what I'm looking at right now. And so hopefully soon
we'll be announcing that as well."
    The 777X is the industry's largest twin-engined jet with
around 400 seats but its entry into service has been delayed by
about five years due to problems including certification delays.
    The fleet review comes as Korean Air plans to purchase
nearly two-thirds of smaller domestic rival Asiana for about
$1.4 billion in a move that requires anti-trust approvals,
including from the United States and Europe.
    The European Union gave conditional approval in February but
 stipulated among other conditions that Asiana's cargo business
must be sold before it gives the final green light.
    A second round of bids for that business is due on Thursday.
    In February, an earlier round attracted bids from four South
Korean low-cost carriers - Jeju Air  089590.KS , Eastar Jet, Air
Premia and Air Incheon, a source with knowledge of the matter
said. 

 (Reporting by Tim Hepher, Joyce Lee and Allison Lampert
Editing by David Goodman and Jane Merriman)
 ((tim.hepher@thomsonreuters.com; +33 1 49 49 54 52; Reuters
Messaging: tim.hepher.thomsonreuters@reuters.net))