South Korea has announced the purchase of five Boeing aircraft to avoid US tariffs. The decision came after South Korean President Lee J Miung’s meeting with US President Donald Trump on July 5 percent tariff.
According to the announcement, US airline maker Giant Boeing and Korean Air signed an agreement worth about $ 1 billion (£ 20 billion) on Monday. In a joint statement, the two organizations said the agreement included 1, 5 and 6 passenger aircraft.
Korean Air chief Walter Cho said new planes were coming at an important time. They will improve and modernize the fleet of South Korea’s national flag airline. This will allow the airline to stay in the global competition, especially when it is in the process of integrating with Ashiana Airlines.
The agreement was unveiled at a meeting of government representatives and business leaders of the two countries. The meeting was at US Minister of Commerce Howard Lutnik and South Korean Commerce Minister Kim Jung-Kawan.
The Korean Air agreement was one of the multiple negotiations in the meeting, the Ministry of Commerce said.
Stephanie, head of Boeing’s commercial aviation department, called the Korean Air order a ‘historic agreement’.
The agreement will be covered by 5 Boeing 3-5 passenger aircraft and 3 long-range jets. Korean Air will also buy eight more 4-5 friet cargo aircraft.
Boeing says the agreement will create about 100,000 thousand employment opportunities across the United States. The company currently has more than 100,000 workers around the world.
Through the latest purchase, Korean Air has made more than 5 orders and promises for the Boeing aircraft this year.
The issue of buying this jet has been in discussion for some time. Seoul said in March that Korean Air Boeing and US engine maker were finalizing an agreement with GE Aerospace. The $ 1.5 billion agreement with GE was also announced on Monday.
A number of countries, which discussed the trade agreement with the Trump administration, have announced plans to buy a significant number of Boeing aircraft. In July, Japan decided to buy five Boeing jets as part of a trade agreement with the United States. Indonesia’s national flagist Airlines Garuda has also signed an agreement to buy five Boeing aircraft as part of a US tariff reduction agreement.
In recent years, Boeing has been in crisis one after another, including two fatal accidents and the opening of an aircraft in the middle sky. Shortly after the flight from Jakarta in Indonesia, a Boeing 3 crashed, so that all 5 people died on the plane. A few months later, another Boeing aircraft in Ethiopia crashed immediately after the flight, killing 5 people. In addition, in 2021, a Boeing 4 Max opened on the unused emergency door panel in the middle sky.
Despite these incidents, the new agreements have helped Boeing’s sale of European rivals Airbus.
Meanwhile, South Korean car maker Giant Hyundai Motor Group has announced the increase in investment in the United States yesterday. They said their investment in the United States would be increased from $ 20 billion to $ 20 billion.
The company also said they would set up a new factory in the United States, where they would be able to produce 3 robots a year.
