US aviation giant Boeing and Korean Air announced a deal worth about $36bn (£24bn) on Monday for 103 planes as President Donald Trump presses trading partners to do more business with American firms.
The deal includes 787, 777 and 737 passenger jets, according to a joint statement from the two companies.
The new jets will come at a “pivotal moment” and modernise the South Korean flag carrier’s fleet, ensuring it stays competitive as it merges with Asiana Airlines, said Korean Air boss Walter Cho.
The agreement was announced just hours after South Korean President Lee Jae Myung met Trump in Washington to discuss the 15% tariffs imposed by the US on the Asian country in July.
The deal was unveiled during a meeting between government representatives and business leaders from the two countries, with US commerce secretary Howard Lutnick and South Korea’s trade minister Kim Jung-kwan in attendance.
The Korean Air deal was among a series of agreements made during the talks, according to Seoul’s trade ministry.
Also on Monday, South Korean car giant Hyundai Motor Group announced it is raising its investment into the US from $21bn to $26bn.
Shortly after the meeting between Trump and Lee, the company said it plans to set up a new facility in the US that will be able to produce 30,000 robots a year.
Boeing’s commercial airplanes chief, Stephanie Pope, hailed Korean Air’s order as a “landmark agreement.”
It will include 50 Boeing 737-10 passenger planes and 45 long-range jets. Korean Air will also buy eight 777-8 Freighter cargo planes.
The deal would support some 135,000 jobs across the US, said Boeing, which employs more than 170,000 people globally.
With the latest purchase, Korean Air has placed more than 150 orders and commitments for Boeing aircraft this year.
The jet order has been on the cards for some time. In March, Seoul said Korean Air was wrapping up an agreement with Boeing and US engine maker GE Aerospace. The deal with GE, worth $13.7bn, was also announced on Monday.
Several countries that are negotiating trade agreements with the Trump administration have announced plans to make significant Boeing aircraft orders.
In July, Japan agreed to buy 100 Boeing jets as part of its trade agreement with the US.
Indonesia’s flag carrier Garuda agreed to buy 50 Boeing jets as part of a deal to reduce US tariffs on the South Est Asian country.
The deals have helped US company’s sales overtake those of its European rival, Airbus.
Boeing has been hit by a series of crises in recent years, including two fatal crashes and a dramatic mid-air blowout of a piece of one of its planes.
In 2018, a Boeing 737 crashed after taking off from Jakarta, Indonesia, killing all 189 people on board. A few months later, another 157 people died when a Boeing plane crashed shortly after take-off in Ethiopia.
Separately in 2024, a panel fitted over an unused emergency exit of a Boeing 737 Max came off mid-flight.
Also last year, an almost eight-week walkout by around 30,000 workers last year dramatically slowed production at the plane maker’s US factories.
By BBC News
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