Korean Air orders nine 777s

Published 9:00 pm Monday, December 22, 2003

Korean Air Lines is buying nine extended range 777s — the biggest order for wide-body jets for the Boeing Co. this year.

The deal, announced Monday, is worth about $1.5 billion at list prices, although airlines typically negotiate discounts.

Boeing will start delivering the 300-seat 777-200ERs in 2005.

The deal was first announced in June at the Paris Air Show, when KAL and Boeing signed a memorandum of understanding, under which the airline would take seven 777s and two 747 freighters.

The 747 deal was completed sooner, and continuing talks on the 777 deal led the airline to take two more jets, Boeing spokeswoman May Kulthol said.

"It’s good news for our folks in Everett," she said.

It is the largest single order for an Everett-built jet for Boeing this year. In September, Japan Airlines had ordered seven 767s in a deal with a list price of about $800 million.

KAL also is Boeing’s best jumbo jet customer this year. Last week, Boeing announced it had sold a 747 to Cathay Pacific Airlines of Hong Kong, its fourth 747 order of the year. KAL’s deal for the two freighters represents half the total.

Monday’s deal will double KAL’s 777 fleet. The airline plans to use its existing 777s to launch direct service between Seattle and Seoul next year.

The order gives Boeing a net of 233 orders for 2003, with less than two weeks left in the year. That’s down from last year’s total of 251 jets.

Sales of wide-body jets in particular have been slow.

Last year, Boeing sold 32 777s, planes with a list price as high as $231 million, depending on model and options.

But so far this year, aside from KAL, aircraft leasing company GE Capital Aviation Services has been the only other buyer for 777s. It placed orders for four.

Likewise, orders for 747s have fallen from 17 to four.

The only wide-body program with sales growth was the 767. After selling eight in 2002, Boeing has taken 10 net orders so far this year.

Boeing’s 737 remains by far its top seller, and sales were up 23 percent over 2002.

Airlines have placed new orders for 191 so far this year, and exercised options on nine others, for a net of 200. That’s an increase over last year’s total of 162 orders.

All Nippon Airways has been the biggest buyer, taking 45 of the single-aisle jets for far this year.

Boeing also sold seven of its soon-to-be canceled 757s, but airlines backed out of eight previously booked orders, giving the program a net loss of one for the year.

Orders for 717s are off, from 32 in 2002 to eight so far this year.

Reporter Bryan Corliss: 425-339-3454 or corliss@heraldnet.com.