Korean Air has given a big endorsement to Boeing Co. (NYSE: BA), despite the recent problems with its Boeing 737 Max 8 aircraft.
Korean Air ordered 40 wide-body aircraft from Boeing at the Farnborough Airshow, which took place on Monday. These included the much anticipated 777X and 787-10 Dreamliners.
The commitment of this magnitude shows that Boeing continues to have confidence in its products and services despite recent difficulties. Boeing shares opened up about 1.0% after the Korean Air Order on Monday.
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Korean Air Orders Boeing 777X Dreamliners and Dreamliners
Korean Air has ordered 20 Boeing 777X and 20 Dreamliners.
The 787-10 is known for its ability to fly long distances.
Korean Air also has the right to purchase 10 additional Dreamliners at a later date. Walter Cho, the CEO of Korean Air, believes that delivery will begin before the end of this decade.
Boeing recently began certification flight testing for the Boeing 777X in conjunction with the Federal Aviation Administration.
The development of the new 777X aircraft is behind schedule, despite this step.
Boeing will release its second-quarter financial results just a week after the new orders are placed.
Analysts expect a Q2 loss per share of $1.40, a dramatic drop from the $82 per share that was reported during the same time period in 2013.
Boeing still optimistic despite challenges
Korean Air’s support for Boeing is a testament to its continued trust in the company, despite supply-chain disruptions and concerns about safety that caused Boeing’s stock price to fall by nearly 30 percent in 2024.
Walter Cho showed his confidence in Boeing’s ability to recover, saying, “If it wasn’t for my assurance, I would not have purchased this.” I’m confident that Boeing will get through the current crisis.
Korean Air placed Airbus A350-1000 orders earlier this year. This shows a commitment to a competitive fleet expansion.
Cho stressed the importance of on-time deliveries, both for Boeing and Airbus. He noted that the first aircraft delivered will be the flagship.
Boeing’s new orders will help it to regain its competitive edge and reputation in the aviation industry.
Boeing has announced its plans to purchase Spirit AeroSystems in order to correct ongoing manufacturing problems. This follows Airbus’s recent acquisition of some of Spirit’s assets to improve their own supply chains.
Stephanie Pope, Boeing’s new commercial head, acknowledged that delayed deliveries have an impact on the customer’s satisfaction, but she assured the customers that Boeing is going through a “transformational shift.”
Boeing confirmed its commitment to increasing production to 38 MAX aircraft per month over the next few months.
The substantial order placed by Korean Air is a vote of confidence for Boeing as it navigates its current challenges and represents an important step towards regaining momentum on the global aviation markets.
The post Korean Air show full confidence in Boeing by ordering 40 planes despite recent problems may be updated as new developments unfold
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