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Korean Air
has signed MOU’s (Memorandum of Understanding) with Airbus and Boeing respectively to purchase a total of 17 aircraft. The deal includes
eight A380 from Airbus, and seven B777, 2 B747-400ERF from Boeing.
Korean Air’s new fleet investments are in line with the Korean government’s
plans to make Seoul the logistics hub of Northeast Asia. The new aircraft
investments are also part of Korean Air’s long-term strategy to simplify and
modernize the fleet, which is already one of the youngest (average 6.4 years)
in the industry.
As for the Airbus 555-seater A380, deliveries to Korean Air are scheduled to
begin in late 2007. Out of eight A380 signed in MOU, five are firm orders and
three are
options. A380 is a fuel-efficient super-jumbo jet being developed by Airbus
and planned to be unveiled in 2006. Taking in its first A380 into the fleet,
Korean Air expects to strengthen its competitive edge by lowering the
operating costs and compete effectively on the long-haul routes such as the
trans-Pacific ones.
Seven
Boeing 777's, proven to be cost-efficient and effective for operation on
long-haul flights, are scheduled to be delivered to Korean Air and will
gradually replace Korean Air’s B747-400 passenger aircraft from 2004, which
the airline hopes will further enhance the competitiveness for Korean Air through lower operating costs.
The new B747-400 Extended Range Freighter can operate up to 900 km
farther than the current model and will replace Korean Air’s MD11 freighter
aircraft. The B744ERF is capable of operating non-stop to long-haul
destinations, which will enhance service and improve aircraft utilization. The
purchase of the new aircraft is Korean Air’s strategic investment that is part
of its long-term corporate plan of becoming the number one cargo carrier
in the world. |
