Paul Lewis/WASHINGTON DC Andrzej Jeziorski/SINGAPORE

Korean Air (KAL) is in advanced discussions with Boeing to become the first launch customer for the freighter version of 747X Stretch (XSF). A key part of the talks involve agreement on a sizeable financial package to boost the ailing carrier's finances.

The design of the 747X has been further refined to increase the ultra-large aircraft's maximum take-off weight to extend its range.

KAL is a major 747 operator with 41 in service, including 12 -200 and -400 Freighters. Boeing sources confirm that 747X negotiations with KAL "are pretty well advanced". It has tabled an offer for eight 747XSFs, plus eight options, although KAL is understood to want only six aircraft initially. This would provide a critical first step towards launching the 747X family.

Cathay Pacific Airways and Northwest Airlines are also showing interest in the 747XSFs as a potential replacement for their Boeing 747-200Fs. Other cargo operators known to be looking at the aircraft include Atlas and Cargolux, while Lufthansa has delayed until later in the year a decision on its next freighter.

KAL claims it is still waiting for an "official proposal" from Boeing, but adds that "obviously calls have been going back and forth". The deal hinges on Boeing extending a financial assistance package to the airline, which last year ran up a pre-tax loss of over $600 million as the result of a weaker won.

The airline is thought to be asking for around $200 million worth of funding, comprising a new loan, postponed repayment of a previous loan and of scheduled aircraft payments, and delayed delivery of two Boeing 777-300s and a 747-400. KAL's last major order, in 1998 for 22 Boeing 737-800/900s, included a package of soft loans.

KAL is also believed to have outstanding loans from Pratt & Whitney, which would give the Engine Alliance the edge in equipping the 747XSF with its GP7100. The airline's fleet of 777s and 747s are all P&W powered.

There is some speculation that the freighter deal could be concluded in time for South Korean President Kim Dae Jung's visit to Washington DC next month. The announcement of KAL's last 737 deal was stage-managed to occur during the President Kim's trip to the USA three years ago.

Source: Flight International