Taipei, June 24 - Taiwan’s China Airlines, the island’s oldest carrier, founded in 1959, is facing significant challenges in its fleet renewal plans due to delays in the delivery of Boeing 787-9 Dreamliner aircraft. The airline, headquartered at Taoyuan International Airport, had intended to phase out its aging Airbus A330s and Boeing 737-800s as part of a major modernization effort. However, these delays have forced the carrier to extend the operational life of older aircraft, some of which are leased, to maintain its service capacity. This development has raised concerns about operational efficiency and potential compensation from Boeing, as outlined by the airline’s newly appointed chairman, George Kao.
.gif)
China Airlines embarked on an ambitious fleet renewal strategy, placing a substantial order last year for new long-haul aircraft valued at nearly $12 billion at list prices. The order was split between Boeing and its European competitor, Airbus, reflecting a balanced approach to modernizing its fleet. Specifically, the airline ordered 24 Boeing 787s, comprising 18 787-9s and six of the larger 787-10 variant, intended for regional and select long-haul routes. These fuel-efficient aircraft were meant to replace the older A330s and 737-800s, aligning with global trends toward sustainability and cost-effective operations. Additionally, China Airlines has ordered Airbus A321neos to bolster its regional fleet and Boeing 777-9s and Airbus A350-1000s to enhance long-haul capabilities, targeting routes to destinations like New York and London.
The delays in Boeing 787-9 deliveries, however, have disrupted these plans. Chairman Kao, a former pilot who assumed his role in March 2025, noted that Boeing has not provided a precise timeline for resolving the issue, though the company indicated deliveries might commence by the end of 2025. The lack of clarity has compelled China Airlines to extend leases on its older aircraft, which were scheduled for retirement or return to lessors. This decision impacts the airline’s ability to streamline operations and reduce maintenance costs associated with older, less efficient planes. Kao emphasized that the delays, particularly if caused by Boeing’s supply chain issues, could trigger compensation clauses embedded in the contract, though specifics remain undisclosed. Boeing did not respond to requests for comment, leaving the resolution timeline uncertain.
Despite these setbacks, China Airlines remains optimistic about its long-term growth. The carrier is leveraging Taiwan’s strategic location as a Pacific-Asia transit hub to attract passengers, with Kao highlighting the advantages of Taoyuan’s new terminal, set to open partially in 2025, over regional competitors like Seoul’s Incheon, Tokyo’s high-cost airports, and Hong Kong, which faces political challenges. The airline is also expanding its subsidiary, Mandarin Airlines, with new jet aircraft to serve regional routes from southern and central Taiwan, reinforcing its competitive stance in the aviation market. While the Boeing delays pose a temporary hurdle, China Airlines’ investments in modern aircraft and infrastructure signal a commitment to future growth and sustainability.