Korea deal boosts Boeing shares

The airline flies between 33 countries

Shares in aerospace giant Boeing have surged to record highs on news of a $5.5bn (£2.3bn) order from Korean Air.

The South Korean group has ordered 25 planes from the firm - 15 passenger aircraft and 10 freight - the biggest deal in the country's aviation history.

The planes will be delivered between 2009 and 2019. The order also includes an option for eight more aircraft.

Boeing shares hit all time highs of $90.15 on the US market after the news and later closed 85 cents up at $89.98.

Korean Air said that it now planned to be "one of the world's top 10 passenger carriers by 2010".

Last year it ordered 10 of Boeing's still-in-development Dreamliner jets as well as five Airbus A380 super-jumbos.

This latest order is for 10 777-300's, five 737's plus the 10 freight planes made up of 747-8F's and 777-200's.

Korean Air currently has 118 aircraft flying between 33 countries and says China's economic boom will help it produce annual growth of 5%-6% over the next 20 years.

The deal means that Boeing has now extended its lead over European rival Airbus.

The Chicago based firm's total net orders for the year now stand at 847 while by the end of last month Airbus had 508 orders on its books.