Just now
South Korea suddenly announced!
On August 26, the sunshine in Seoul, Korean Airlines dropped out of the kingdom: one breath signed a $ 50 billion deal, took back 103 Boeing new aircraft and a bunch of engines, directly refresh the ceiling of Korean aviation history.
You must know that this US$50 billion is equivalent to one-third of South Korea's total aviation revenue for the whole year. Even the wealthy local airlines in the Middle East have to think about it for a long time. However, Korean Air is good for it to directly update the fleet for the next ten years. The plan is finalized in one go, which is so big that it makes people wonder: Are they going to fill the entire Pacific Ocean with aircraft?
In fact, Korean Air did so, to put it bluntly is an orchestrated "gamble", why is it a gamble? Think about it, 50 billion dollars is not a small amount, even if Korean Air is rich, it is impossible to casually take out so much money.
Korean Air had just completed the acquisition of Asiana Airlines. After the merger of the two companies, the integration of the fleet became a big problem. The original Asiana Airlines had its own aircraft, and Korean Air also had its own fleet.
Therefore, Korean Airlines must update its fleet and replace the old, incompatible aircraft in order to a real “parenthood.”
Look at the aircraft models ordered this time. Each model shows the energy of "precise money throwing". There are 20 777-9, 25 787-10, 50 737-10, and 8 777-8 cargo planes. These aircraft are not randomly selected. They are all the latest energy-saving aircraft launched by Boeing, which are fuel-efficient, efficient and have a large passenger capacity.
Korean Air is wanting to update the fleet, reduce operating costs, improve market competitiveness, after all, in the aviation industry, fuel costs are big, can save a little bit, and these new aircraft can also improve the brand image of Korean Air, attracting more passengers to choose their flights.
However, this matter is not without risks. The $50 billion order is not paid in one lump sum. Korean Air must pay in installments, which means that in the next ten years, Korean Air will have to spend a lot of money every year to pay off the debt.
If the airline industry is sluggish, or Korean Air's revenue declines, the debt pressure will increase, and the safety of the Boeing 737 MAX has always been a concern.
Although Boeing has been improving, previous air crashes have still made many people have doubts about this aircraft. Korean Air ordered 50 737MAX 10s this time. If anything happens again, it will be in trouble.
There is another issue that cannot be ignored, and that is geopolitical factors. The relationship between South Korea and the United States has always been very close. This time, Korean Air signed such a large order, and there may be a shadow of the U.S. government behind it.
The United States has always wanted to strengthen cooperation with South Korea through various means, and the aviation industry is a good entry point. Korean Air chose Boeing instead of Airbus, probably to cater to the political needs of the United States.
Moreover, the signing ceremony was held in Washington, with South Korean President Lee in Ming and U.S. President Trump attending, which turned out to be a political show.
Of course, Korean Air is not completely without benefits. First of all, this order will allow Korean Air to get better prices and services from Boeing.
After all, the more you buy, the stronger your bargaining power will be. In order to win this order, Boeing will definitely give Korean Air some discounts, such as lower aircraft prices, longer payment terms, or free engine maintenance services.
Secondly, after updating the fleet, Korean Air's operating efficiency will be greatly improved and costs will be reduced, which is very helpful for enhancing the company's profitability.
However, we also have to sweat for Korean Air. The aviation industry is a high-risk and high-investment industry, with great market fluctuations and fierce competition. Korean Air made such a big bet this time. If it wins the bet, it will make a lot of money; But if you lose the bet, the consequences will be unimaginable.
Moreover, the global aviation industry is now facing various challenges, such as rising fuel prices, increasing environmental pressure, recurring epidemics, etc. South Korea Airways can complete fleet upgrades smoothly in such an environment and the expected benefits.
In recent years, Boeing is said to be a bad year, the 737 MAX air crash has hurt their reputation, the order volume has also dropped dramatically, this time Korean airline's order is simply a timely rain for Boeing, not only to ease their financial pressure, but also to boost market confidence.
Boeing will take Korean Air as a "rescuing grain" and make every effort to meet their needs, but Boeing must be careful, but there will be no more security accidents, otherwise even if there are more orders will not save them.
Finally, we have to see what role the Korean government plays in this matter. The Korean government has always attached great importance to the development of the aviation industry and has introduced many supporting policies before.
The airline signed such a large order, probably with government support, such as low-interest loans, tax incentives, or other forms of subsidies.
After all, the aviation industry is an important industry in South Korea, and it has a great contribution to economic development and employment, and the government doesn’t want to see what Korean airlines do.
Overall, Korean Air's $50 billion order this time is both a big gamble and an opportunity. They want to update their fleet, improve their competitiveness, and occupy a larger share of the global aviation market.
But this road is not easy, full of risks and challenges. Let's wait and see if Korean Air can have the last laugh in this gamble, but one thing is certain, this "gamble" will definitely have a profound impact on the global aviation industry. Let's wait and see.
South Korea suddenly announced!
On August 26, the sunshine in Seoul, Korean Airlines dropped out of the kingdom: one breath signed a $ 50 billion deal, took back 103 Boeing new aircraft and a bunch of engines, directly refresh the ceiling of Korean aviation history.
You must know that this US$50 billion is equivalent to one-third of South Korea's total aviation revenue for the whole year. Even the wealthy local airlines in the Middle East have to think about it for a long time. However, Korean Air is good for it to directly update the fleet for the next ten years. The plan is finalized in one go, which is so big that it makes people wonder: Are they going to fill the entire Pacific Ocean with aircraft?
In fact, Korean Air did so, to put it bluntly is an orchestrated "gamble", why is it a gamble? Think about it, 50 billion dollars is not a small amount, even if Korean Air is rich, it is impossible to casually take out so much money.
Korean Air had just completed the acquisition of Asiana Airlines. After the merger of the two companies, the integration of the fleet became a big problem. The original Asiana Airlines had its own aircraft, and Korean Air also had its own fleet.
Therefore, Korean Airlines must update its fleet and replace the old, incompatible aircraft in order to a real “parenthood.”
Look at the aircraft models ordered this time. Each model shows the energy of "precise money throwing". There are 20 777-9, 25 787-10, 50 737-10, and 8 777-8 cargo planes. These aircraft are not randomly selected. They are all the latest energy-saving aircraft launched by Boeing, which are fuel-efficient, efficient and have a large passenger capacity.
Korean Air is wanting to update the fleet, reduce operating costs, improve market competitiveness, after all, in the aviation industry, fuel costs are big, can save a little bit, and these new aircraft can also improve the brand image of Korean Air, attracting more passengers to choose their flights.
However, this matter is not without risks. The $50 billion order is not paid in one lump sum. Korean Air must pay in installments, which means that in the next ten years, Korean Air will have to spend a lot of money every year to pay off the debt.
If the airline industry is sluggish, or Korean Air's revenue declines, the debt pressure will increase, and the safety of the Boeing 737 MAX has always been a concern.
Although Boeing has been improving, previous air crashes have still made many people have doubts about this aircraft. Korean Air ordered 50 737MAX 10s this time. If anything happens again, it will be in trouble.
There is another issue that cannot be ignored, and that is geopolitical factors. The relationship between South Korea and the United States has always been very close. This time, Korean Air signed such a large order, and there may be a shadow of the U.S. government behind it.
The United States has always wanted to strengthen cooperation with South Korea through various means, and the aviation industry is a good entry point. Korean Air chose Boeing instead of Airbus, probably to cater to the political needs of the United States.
Moreover, the signing ceremony was held in Washington, with South Korean President Lee in Ming and U.S. President Trump attending, which turned out to be a political show.
Of course, Korean Air is not completely without benefits. First of all, this order will allow Korean Air to get better prices and services from Boeing.
After all, the more you buy, the stronger your bargaining power will be. In order to win this order, Boeing will definitely give Korean Air some discounts, such as lower aircraft prices, longer payment terms, or free engine maintenance services.
Secondly, after updating the fleet, Korean Air's operating efficiency will be greatly improved and costs will be reduced, which is very helpful for enhancing the company's profitability.
However, we also have to sweat for Korean Air. The aviation industry is a high-risk and high-investment industry, with great market fluctuations and fierce competition. Korean Air made such a big bet this time. If it wins the bet, it will make a lot of money; But if you lose the bet, the consequences will be unimaginable.
Moreover, the global aviation industry is now facing various challenges, such as rising fuel prices, increasing environmental pressure, recurring epidemics, etc. South Korea Airways can complete fleet upgrades smoothly in such an environment and the expected benefits.
In recent years, Boeing is said to be a bad year, the 737 MAX air crash has hurt their reputation, the order volume has also dropped dramatically, this time Korean airline's order is simply a timely rain for Boeing, not only to ease their financial pressure, but also to boost market confidence.
Boeing will take Korean Air as a "rescuing grain" and make every effort to meet their needs, but Boeing must be careful, but there will be no more security accidents, otherwise even if there are more orders will not save them.
Finally, we have to see what role the Korean government plays in this matter. The Korean government has always attached great importance to the development of the aviation industry and has introduced many supporting policies before.
The airline signed such a large order, probably with government support, such as low-interest loans, tax incentives, or other forms of subsidies.
After all, the aviation industry is an important industry in South Korea, and it has a great contribution to economic development and employment, and the government doesn’t want to see what Korean airlines do.
Overall, Korean Air's $50 billion order this time is both a big gamble and an opportunity. They want to update their fleet, improve their competitiveness, and occupy a larger share of the global aviation market.
But this road is not easy, full of risks and challenges. Let's wait and see if Korean Air can have the last laugh in this gamble, but one thing is certain, this "gamble" will definitely have a profound impact on the global aviation industry. Let's wait and see.