Korean Air to sign $13.7 bln deal with Airbus for 33 A350 jets (updated)

ASIANA AIRLINES

21/03/2024 09:28

(Adds detail throughout)
       SEOUL, March 21 (Reuters) - Korean Air Lines  003490.KS 
will order 33 Airbus  AIR.PA  A350 jets in a deal valued at
$13.7 billion, its first purchase of the long-haul aircraft
family, as it gears up for a pending merger with Asiana Airlines
 020560.KS , it said on Thursday. 
    South Korea's largest carrier will order 27 A350-1000 and
six A350-900 planes, which Airbus says use 25% less fuel than
similar older generation planes. 
    Korean Air, which operates a mixed fleet of Boeing and
Airbus wide- and narrow-body aircraft, said the order was for
its long-term fleet planning as older aircraft retire and to
meet sustainability goals. 
    Korean Air has obtained a green light from competition
authorities in 13 of 14 jurisdictions for the purchase of nearly
two-thirds of the country's second biggest carrier Asiana for
about $1.4 billion. It is awaiting a U.S. decision to finalise
the merger, which CEO Walter Cho has said he is confident will
be completed by the end of the year.
    Cho said in February the carrier will need to simplify its
fleet after the Asiana merger as it will have almost every
aircraft and engine type available.
    "The procurement of the next-generation, eco-friendly A350
is not only aligned with the airline's sustainability efforts,
but also is seen as preparation for the integration of Asiana,"
Korean Air said in a statement. 

 (Reporting by Jack Kim and Lisa Barrington 
Editing by Ed Davies and Elaine Hardcastle)
 ((jack.kim@thomsonreuters.com; +822 6936 1455;))