Korean Airlines (KAL) has signed a Memorandum of Understanding (MoU) with Airbus to take five A380s worth $1.37 billion. If a further three options for the type are exercised the deal would be worth $2.1 billion.
Yesterday's announcement at Paris brings the number of firm orders for the Airbus mega jumbo to 129 (13 are the subject of MoUs), more than half way past the manufacturer's break even figure of 250 aircraft.
KAL is the 11th airline to order the A380. It will operate the fleet from its Seoul base to the USA and Europe. "Our decision to purchase the A380 aircraft meets our strategy to reinforce Incheon International Airport as the strongest hub in north-east Asia," said Yang-Ho Cho, chairman and chief executive of KAL.
"As one of the leading airlines in Asia, our long-term fleet plan plays a significant role in this strategy." First delivery will be in 2007 and the order closes available slots for that year. Airbus says that slots in 2008 are also running out. The Airbus team is hopeful that a Chinese carrier will buy the A380, possibly operating it in time for the 2008 Olympic Games in Beijing.
KAL enjoys fifth-freedom rights in Japan and so will be able to pick up passengers there on flights to the US. John Leahy, Airbus chief commercial officer, says: "Korean Air is a key airline, and one of the most powerful carriers in Asia. I hope this vote of confidence in the A380 will be an anchor for us in Asia."
Airbus sees a market for 1,500 aircraft, 300 of them freighters, capable of carrying more than 400 passengers over the next 20 years. Its business model has always assumed that Boeing would build a rival aircraft.
"We assumed they would have an aircraft, but right now we have a head start in this category of aircraft," said Leahy.
Airbus chief executive Noel Forgeard said: "The A380 is especially well suited to respond to the needs of Asian carriers in the new century. Korean Air's commitment to the A380 is again a demonstration of its foresight into future market requirements." KAL is a major Airbus customer with a fleet of 51 aircraft from the European manufacturer - 32 A300s and 19 A330s.
Source: Flight Daily News
