China Airlines Will Renew Its Fleet by Decommissioning at Least 30 Passenger Planes

Taipei, Oct. 29, 2012 (CENS)--Countering high fuel prices, China Airlines, Taiwan's flag carrier, will renew its fleet by decommissioning at least 30 passenger planes including 10 long-term planes and 20 short-term planes, with total investments estimated to be NT$75 billion (US$ 2.5 billion), according to H.X. Sun, general director of China Airlines. 

With rising fuel prices in recent years, China Airlines has been planning fleet renewal since the end of 2010, but has postponed orders due to promotion of new planes by the two major airplane makers Boeing and Airbus.

Sun says the carrier will lease three Boeing 737-800s next year, and has received delivery of five of the seven long-term-lease Airbus A330s, with the two remaining to be delivered within the next two years; 14 Airbus A350s will be delivered in 2016 to replace the current Airbus A340s, and Boeing 777-330 ER or Airbus A350-1000 will replace the current Boeing 747s. 

According to insiders, each Boeing 747 MAX or Airbus A320 sell for about US$60 million, with 20 such airplanes to cost US$1.2 billion. Each Boeing 777-300 ER or Airbus A350-1000 sells for about US$130 million, so ten would cost US$1.3 billion. Considering total investments of the new airplanes to be about US$ 2.5 billion, China Airlines would probably lease more planes long-term. 

J.Z. Chang, president of China Airlines, says passenger service sales has plateaued this year and outlook of next year will likely be rosy as well, motivating the carrier focus on renewal of passenger aircrafts instead of cargo planes.

(by Renee Chen)