Taiwan’s China Airlines Nears $4 Billion Jet Order Split Between Airbus and Boeing

Taiwan’s China Airlines is close to finalizing a major multi-billion-dollar order for long-distance jets, expected to be divided between Airbus and Boeing, industry insiders reported. This decision aligns with a recent political shift, as former U.S. President Donald Trump returned to office. Taiwan is keen on ensuring stable U.S. relations to support its strategic interests, especially given China’s ongoing claims over the island.

China Airlines, Taiwan’s largest carrier, is reportedly considering Boeing’s 777X and Airbus’s A350-1000 models to replace its aging Boeing 777-300ER fleet and boost long-haul capacity. Sources indicate the order may include around 20 passenger jets, evenly split between the two aircraft manufacturers, while the choice of freighters remains under review.

The potential passenger jet deal could reach nearly $4 billion after standard industry discounts, according to aviation consultancy Cirium Ascend. The decision awaits China Airlines’ board approval, with no guarantee on the final mix of aircraft types. This order would follow a 2022 agreement to acquire 24 Boeing 787 Dreamliners, comprising six 787-8s and 18 787-9s, as well as an Airbus A321neoX to enhance its regional fleet.

China Airlines currently operates 15 A350-900s, 13 A330-300s, and nine 737-800s. The new long-haul aircraft will primarily strengthen the airline’s routes between Taipei and key U.S. cities, including New York-JFK and San Francisco (JFK), which are exclusively served by the 777-300ERs, as well as Los Angeles (LAX), Ontario (California-ONT), and Seattle (SEA), served by a mix of 777s and Airbus A350-900s.

Amid Taiwan’s unique international position, aircraft purchase decisions often consider both political and commercial factors. As the U.S. continues to be Taiwan’s key international ally, some sources believe diplomatic relations can influence purchasing outcomes. Nonetheless, China Airlines’ chairman Hsieh Shih-chien has affirmed that fleet choices are made independently by the airline, without political pressure.

Shares of China Airlines rose 3.3% following the news, outperforming Taiwan’s broader market index, which gained 0.8%.

Sources: AirGuide Business airguide.info, bing.com, Cirium Ascend, reuters.com, China Airlines