Taiwan's China Airlines Orders New Aircraft

TAIPEI (Reuters) – Taiwan's China Airlines will split an order for its long-haul fleet renewal between Boeing and European rival Airbus, buying freighters from the U.S. planemaker in a deal worth almost $12 billion.

China Airlines considered the 777X, including the 777-9 variant, and the A350-1000 as replacements for its fleet of 10 Boeing 777-300ERs and to accommodate future growth.

On Thursday, China Airlines announced it would purchase 10 Boeing 777-9 aircraft, 10 Airbus A350-1000s, and four 777-8 freighter aircraft for $11.9 billion, with deliveries starting in 2029.

The airline stated, "China Airlines has been actively planning its fleet size and is steadily expanding its presence in the global passenger and cargo markets."

The A350s will feature Rolls-Royce engines, while the 777-9s will be equipped with GE engines.

Such multibillion-dollar aircraft deals must navigate political and business considerations, particularly for Taiwan, which faces pressure regarding its sovereignty claimed by China. The U.S. remains Taiwan's primary international ally despite no formal diplomatic relations, and the Taiwan government is the majority owner of China Airlines.

Chairman Hsieh Shih-chien mentioned in October that there was no political pressure influencing the fleet decision.

China Airlines shares closed down 1% on Thursday, in line with the broader market index.