Taiwan’s flagship carrier, China Airlines, has finalized a significant fleet renewal deal, dividing a nearly $12 billion order between Boeing and Airbus. This strategic decision marks a major win for both aircraft manufacturers and highlights the airline’s ambitious growth plans.
China Airlines announced the purchase of 10 Boeing 777-9 aircraft and 10 Airbus A350-1000s, along with four 777-8 freighter aircraft. The combined list price for these new additions to the fleet reaches $11.9 billion, with deliveries scheduled to commence in 2029. This substantial investment underscores China Airlines’ commitment to modernizing its long-haul fleet and expanding its global presence.
This decision confirms earlier reports suggesting the airline would split its order for large passenger jets. The selection of Boeing for the freighter component of the deal reflects the ongoing importance of air cargo in the global economy. The new passenger aircraft will gradually replace the airline’s current fleet of 10 Boeing 777-300ERs, ensuring sufficient capacity to accommodate future growth projections. In a statement, China Airlines emphasized its proactive fleet management and its dedication to expanding its footprint in both passenger and cargo markets worldwide.
The A350s will be equipped with Rolls-Royce engines, while the 777-9, currently facing delays, will utilize GE Aerospace engines. The choice of engine manufacturers further diversifies the airline’s technological portfolio. The impact of this deal on the stock market was noticeable, with China Airlines shares experiencing a slight decline, mirroring the broader market trend. Boeing’s shares outperformed a slightly stronger U.S. market, whereas Airbus shares saw a decrease, aligning with a weaker performance on the Paris bourse. Large-scale aircraft procurement deals often involve complex considerations extending beyond purely business factors, encompassing political dynamics as well.
This is particularly relevant for Taiwan, given its unique geopolitical context and the ongoing pressure it faces regarding its relationship with China. The United States remains Taiwan’s primary international supporter and arms provider, even in the absence of formal diplomatic relations. Significantly, the Taiwanese government holds a majority stake in China Airlines. Previously, China Airlines Chairman Hsieh Shih-chien had asserted that the airline’s decision-making process regarding its fleet renewal was free from political influence.
In conclusion, China Airlines’ strategic decision to split its substantial fleet renewal order between Boeing and Airbus reflects a balanced approach to modernization and growth. The acquisition of both passenger and freighter aircraft positions the airline for continued expansion in the global aviation market. This major investment underscores China Airlines’ commitment to enhancing its long-haul capabilities and solidifying its position as a leading player in the industry. The deal also highlights the complex interplay of business and geopolitical considerations in large-scale aircraft procurement decisions.
