Paul Lewis/SINGAPORE
Asiana Airlines has finally been given government approval to order its first tranche of 14 new Airbus and Boeing widebody aircraft, following commitments from the manufacturers to meet last-minute South Korean demands for offset work.
Tentative agreement on the question of industrial concessions has cleared the way for the South Korean carrier to purchase its first eight aircraft from Boeing, consisting of three 777-200IGWs, two stretched -300s, two 767-300s and a single 747-400 freighter. The Airbus deal covers three A330-300s and three longer-range -200s.
The order forms part of a larger planned fleet purchase of up to 58 widebody aircraft by 2005, including 20 options. The first approval tranche of 14 covers delivery positions between 1998 and 2001. Asiana is expected to submit an application to the South Korean Government for approval of the remaining 24 firm orders towards the end of the year, or in early 1998.
Asiana's second tranche includes an Airbus order for seven more A330-300s and five A330-200s, plus options on another five of each type. The Boeing element is made up of orders for six 777-300s, four -200IGW and two 747-400s, plus options on three 777-200IGWs, two -300s, three 747-400s and two 767-300s.
The carrier in addition has already ordered up to 18 Airbus A321s as part of a separate deal, and is scheduled to take delivery of the first aircraft in early 1998.
Asiana finalised the new widebody deal in late 1996, selecting Pratt & Whitney PW4000s to power the A330s and 777s and General Electric CF6-80s for the 747s and 767s. The purchase was unable to proceed until the ministry of transportation and construction and the ministry of trade, industry and energy - which in turn delegates responsibility to the Korea Aerospace Industry's Association (KAIA) - had given their blessing.
KAIA's final green light was made conditional on Airbus and Boeing meeting a 20% offset condition which is compulsory for all civil-aerospace purchases. Asiana, unlike its rival Korean Air, does not have an aerospace manufacturing division, and so did not make industrial concessions a part of its contract negotiations with the two manufacturers (Flight International, 9-15 July, P13).
Linking formal offsets directly with the deal is understood to have proved a sticking point for Boeing, but a formula has been agreed which meets with Korean requirements. The details of the concession packages have still to be made clear, but are likely to include structural-type work for Daewoo Heavy Industries, which is linked to Asiana through its parent company, the Kumho Group.
Source: Flight International
