Hanjin Group Chairman Cho Won-tae will attend the Farnborough International Airshow in the UK, where he is expected to finalize an aircraft purchase deal with Boeing, according to industry insiders. Hanjin Group is the South Korean aviation conglomerate behind the country’s top air carrier, Korean Air, which is awaiting approval from the U.S. Department of Justice (DOJ) for its merger with Asiana Airlines.
Chairman Cho and Korean Air Vice Chairman Yoo Jong-seok will attend the Farnborough Airshow on July 21, according to people familiar with the matter. Following the air show, Cho is expected to meet with Korean Air’s London office officials to discuss the airline’s plans for European routes.
Korean Air needs to rebuild its European routes, having transferred its Rome-Paris-Frankfurt-Barcelona routes to low-cost carrier T’way Air as part of a remedy required by the European Competition Authority (EC). Starting with flights to Lisbon, Portugal, in September, the airline is looking for new destinations, including Poland, where it recently acquired operating rights, or the right to carry passengers or cargo.
As part of this expansion, Korean Air is likely to place a large order for new aircraft from U.S. aircraft manufacturer Boeing. In an interview with Bloomberg in June, Chairman Cho said, “We plan to place an order with Boeing for 30 airplanes in July,” hinting that a decision could be made at the Farnborough Airshow.
Sources suggest that Korean Air will likely choose between Boeing’s 777X and 787 Dreamliner models. The final price will be determined through negotiations between the airline and the manufacturer. The decision will be made based on the retirement of older aircraft and the airline’s plans to operate long-haul routes to Europe and other regions.
The 777X is the third generation of the Boeing 777 airliner, designed for long-haul operations with a seating capacity of 400. It is an enhanced version of the Boeing 777 family, with its first commercial flight scheduled for 2025. The 777X is estimated to cost around $198 million per aircraft. If Korean Air decides on the 777X, the total contract could reach $6 billion.
Korean Air currently operates 13 Boeing 787-9 Dreamliners, but the aircraft has been embroiled in controversy after a whistleblower alleged that parts of Boeing’s 787 Dreamliner planes were built in an unsafe manner.
