Boeing Buys Into Korean Communications Company, Lands Deal In India

Boeing announced an agreement on Sunday to invest in Huneed Technologies, a Korean manufacturer of military communications systems, and also announced a firm deal with Air Sahara for 10 new planes.

Boeing is making an equity investment for a minority interest in Huneed. Subject to regulatory approval, the transaction is expected to close in the current qquarter.

Huneed has capabilities in the field of tactical communications, Korean data links, Korean cryptographic equipment and software development. The company has been a Boeing partner in Korea on the 737 Airborne Early Warning & Control (AEW&C) team.

Boeing C3 Networks, a part of the Network & Space Systems business of Boeing Integrated Defense Systems, delivers strategic integrated military capabilities.

According to the Associated Press, Boeing's order from India's Air Sahar is for 737-800 jets and is valued at $700 million at, said Dinesh Keskar, Boeing's senior vice president of sales for South Asia and Southeast Asia.

Delivery of the planes will start in mid-2009, Keskar said. The company’s fleet currently contains 27 Boeing jets.

Boeing said it has nearly doubled its forecast for India's aircraft needs to 856 commercial jets worth more than $72 billion over the next 20 years. Last year, the Chicago-based aircraft maker had projected India's demand for new jets over a 20-year period at a little over 470 planes worth $35 billion.

In 2005, Boeing won orders valued $15 billion at list price from Indian carriers, including an order for 68 airplanes worth $11.4 billion from state-run Air India.