Taiwan Airlines splits jet order between Boeing, Airbus

Taiwan’s China Airlines said on Thursday it would split an order for its long-haul fleet renewal between Boeing and European competitor Airbus and will also purchase freighters from Boeing in a significant deal valued at nearly $12 billion.

Taiwan’s largest carrier was weighing options for replacing its fleet of 10 Boeing 777-300ERs with either the 777X or A350-1000 to accommodate future growth, according to sources familiar with the matter.

Multibillion-dollar aircraft deals must consider political factors, especially in Taiwan, where pressure from China’s sovereignty claims challenges the democratically elected government in Taipei.

The United States is Taiwan’s key supporter and provider of arms, despite the absence of formal diplomatic relations, and the Taiwan government is the majority owner of China Airlines.

In October, China Airlines Chairman Hsieh Shih-chien stated that the airline was not under any political pressure regarding the decision on its long-haul fleet. On Thursday, China Airlines shares closed 1 per cent lower, in line with the overall index.

Attribution: Reuters

Subediting: Y.Yasser