March 25 (UPI) — Korean Air officials agreed to a $32.7 billion purchase of Boeing aircraft and GE Aerospace engines that are made in the United States, Commerce Secretary Howard Lutnick announced Tuesday.
The agreement includes Korean Air buying 50 Boeing wide-body commercial aircraft and GE Aerospace engines to power them, according to a Commerce Department news release.
“Today’s announcement clearly illustrates the global recognition of American manufacturing and innovation,” Lutnick said. “Our skilled workforce at industry leaders like Boeing and GE Aerospace embodies America’s unparalleled industrial strength and technological prowess.”
He said the deal is an example of how the Trump administration intends to revise U.S. manufacturing and “fuel our nation’s economic resurgence.”
Boeing president and Chief Executive Officer Kelly Ortberg said the deal illustrates the “competitiveness of American manufacturing and exports” on the global level.
“Our ongoing collaboration with Korean Air highlight international confidence in aircraft made in America,” Ortberg said.
Korean Air and Hanjin Group chairman and Chief Executive Officer Walter Cho said the deal will help the South Korean airline expedite its fleet-renewal program and support its expansion after recently acquiring Asiana Airlines.
“Boeing and GE Aerospace provide the advanced technology that powers our commitment to excellence,” Cho said in a news release. “Our partnership is essential to our vision of becoming the world’s most loved airline.”
He said Korean Airline’s fleet modernization will enhance the travel experience and comfort of its passengers while reducing carbon emissions.
Korean Air will pay $24.9 billion for 50 Boeing aircraft and $7.8 billion for GE Aerospace engines and maintenance services.
The agreement includes orders for 20 Boeing 777-9 and 20 Boeing 787-10 wide-body aircraft to be delivered through 2033.
Korean Air will buy another 10 aircraft under similar terms and eight spare engines from GE Aerospace with options for two more engines.
GE Aerospace will provide “comprehensive maintenance” services for the GE9X engines that will power Korean Air’s Boeing 777-9 fleet.
“We’re enthusiastic about advancing our longstanding collaboration, supporting Korean Air’s fleet modernization and growth ambitions,” GE Aerospace president and Chief Executive Officer Russell Stokes said.