China Airlines Announces $12 Billion Fleet Renovation Deal with Boeing and Airbus
Taiwan's China Airlines has announced a deal worth approximately $12 billion to renew its long-haul fleet. The order is split between American aircraft manufacturer Boeing and its European rival Airbus. The airline will also purchase cargo planes from Boeing as part of the agreement.
As Taiwan's largest airline, it was evaluating potential candidates to replace its current fleet of 10 Boeing 777-300ERs, with options including the Boeing 777X and Airbus A350-1000 models to facilitate future growth.
China Airlines confirmed on Thursday that it will purchase 10 Boeing 777-9 aircraft, 10 Airbus A350-1000s, and 4 777-8 cargo planes, with deliveries scheduled to begin in 2029.
In its announcement, China Airlines emphasized that it is actively planning for fleet expansion and has been steadily growing in the global passenger and cargo markets. The airline also noted that the A350s will be equipped with Rolls-Royce engines, while the 777-9s will feature GE engines.
In such large-scale aircraft acquisitions, business factors often play a role alongside political considerations. This is particularly relevant for Taiwan due to its international position and the pressures it faces concerning China's sovereignty claims. Taiwan's democratically elected government rejects these claims.
The United States continues to be Taiwan's most significant international supporter and arms supplier, despite lacking official diplomatic relations.
The Taiwan government is the majority stakeholder in China Airlines. In October, the airline's President Hsieh Shih-chien stated that they were not under any political pressure regarding the long-haul fleet decision.