Korean Air nears deal for about 20 Airbus A350 widebody jets

KOREAN Air Lines is close to making a significant order for Airbus widebody jets, according to sources familiar with the matter, as the carrier looks to simplify its fleet once it merges with Asiana Airlines.

The airline plans to buy around 20 A350 jets, according to the sources, who asked not to be identified because the information is not public. The agreement could be announced as soon as this week, though the deal is not final and could still fall apart depending on the outcome of a Mar 21 board meeting, the sources said.

Korean Air is also mulling adding more A321neo single-aisle planes, one of the sources said. The carrier placed a 4.1 trillion won (S$4.1 billion) top-up order for 20 of the jets in October, taking its total order to 50.

The airline has also been evaluating Boeing’s 777X, chief executive officer Walter Cho said in 2022. The United States planemaker’s newest widebody, which it says will be the world’s largest and most fuel-efficient twin-engine, is still undergoing certification. Boeing, which is being plagued by production issues as it focuses on fixing quality lapses exposed by the Jan 5 accident on an Alaska Airlines 737 Max flight, last month said the 777X is still on track to be ready for 2025.

A spokesperson for Korean Air said the carrier is unable to comment on any potential order at this point in time. An Airbus spokesperson said the planemaker does not comment on “discussions we may or may not be having with airlines”.

Cho said in an interview in November that the carrier was reviewing its options for a long-haul widebody jet order that would come soon.

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The fleet decision comes ahead of Korean Air’s pending acquisition of Asiana, which is now just awaiting US regulatory approval. An enlarged Korean Air is aiming to reduce the many types of planes it operates across the Boeing and Airbus families to simplify operations and reduce costs.

Korean Air does not operate the A350 but does fly the older generation 777, while Asiana has 15 A350s with a further 15 on order. A Korean Air order indicates it will stick with its rival’s A350 fleet post-merger.

The order would mark Korean Air’s first widebody purchase since 2019 and be a win for the European planemaker, as the Korean carrier has previously relied more on Boeing for the majority of its fleet.

The carrier had almost 160 aircraft as at Dec 31, according to its most recent financial filing, and around 100 orders on backlog. Korean Air is also mulling jettisoning its smallest jet – a fleet of 10 Airbus A220s – Bloomberg News reported last month.

Orders of widebody jets are growing as production slots fill into the latter part of this decade. Airlines are also turning to larger jets as single-aisle slots for both Airbus and Boeing are virtually full to the end of this decade.

Airbus has been making around five of its flagship A350s a month. It aims to lift that to 10 by 2026. BLOOMBERG