Orders from Korean and Japanese airlines

At the Farnborough International Airshow in the UK, Boeing received orders for up to 70 aircraft from Korean Air and Japan Airlines. This is a much-needed boost of confidence for this aircraft manufacturer facing manufacturing and safety challenges.

Korean Air has ordered up to 50 Boeing wide body aircraft, including 20 Boeing 777-9s and 20 Boeing 787-10s, and has the option to purchase an additional 10 largest models of Boeing 787 Dreamliners. Japan Airlines has ordered up to 20 Boeing 787 Dreamliners, including 10 Boeing 787-9s, with the option to purchase an additional 10.

Challenges for Boeing

The arrival of these orders comes at a time when Boeing is facing pressure from production slowdown and regulatory scrutiny. The near catastrophic event of Alaska Airlines flights in January forced Boeing to reduce production, resulting in burning billions of dollars in cash every quarter. Currently, there are approximately 200 completed or almost completed aircraft parked at airports, outside factories, or other locations, waiting for interior or engine components.

Boeing at the Farnborough Air Show

The Farnborough Airshow is one of the largest aviation trade shows in the world, where aircraft manufacturers showcase their latest products and technological advancements while promoting orders for new passenger, cargo, and military aircraft.

Boeing has reduced its exhibition scale this time, citing the need to focus on improving safety and quality, as well as meeting delivery needs, rather than acquiring new orders. As of June this year, Boeing has delivered 175 aircraft, a significant decrease compared to the 266 delivered in the first half of 2023.

Boeing's Future Goals

Prior to the event, Boeing stated in its annual industry report that it expects aircraft deliveries to increase by 3% over the next 20 years, with airlines requiring nearly 44000 new commercial aircraft. Boeing predicts strong growth potential for the aviation industry as air travel demand exceeds pre pandemic levels and continues to exceed overall economic growth.