Korean Air buys from Boeing, Airbus

Korean Air has signed a Memoranda of Understanding with Boeing and Airbus to acquire up to seventeen passenger aircraft.

From Boeing the airline will buy nine aircraft, a mix of 747 and 777swith a catalogue price of $1.5 billion, although typically that price would be discounted.

However Boeing's sales this week have been dwarfed by Airbus, which also got an order today for eight Airbus A380-800 passenger aircraft (five firm orders and three options).

With Korean Air's selection, Airbus has now 129 orders and commitments from 11 customers for the A380 programme.

Deliveries to Korean Air are scheduled to begin in late 2007 through 2009.

"Our decision to purchase the A380 aircraft meets our strategy to reinforce Incheon Intl Airport as the strongest hub in Northeast Asia," said Yang Ho Cho, Chairman and CEO of Korean Air. "As one of the leading airlines in Asia, our long-term fleet plan plays a significant role in this strategy."

Noel Forgeard, Airbus Chief Executive Officer said: "The A380 is especially well suited to respond to the needs of Asian carriers in the new century. Korean Air's commitment to the A380 is again a demonstration of its foresight into future market requirements. It also further confirms the fact that the A380 is the right aircraft that arrives at the right time on the market".

Airbus' relationship with Korean Air dates back to 1974, when the airline became Airbus' first customer outside Europe. Today, the carrier remains one of Airbus' largest customers in the region, having placed total firm orders for 51 widebody types, 32 A300s and 19 A330s.

Korean Air's decision seems to go against Boeing's belief that passengers want more point-to-point flights in smaller aircraft, a policy that underpins the design concept for its latest offering, the 7E7 or 'Dreamliner', much hyped this week, but still with no firm commitment from Boeing to build it.

REF XQQAS XQQEE XQQPC XQQCR