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Taiwan's China Airlines splits $11.9 bln aircraft deal between Boeing and Airbus
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Taiwan's China Airlines splits $11.9 bln aircraft deal between Boeing and Airbus
Dec 19, 2024 1:40 AM

TAIPEI, Dec 19 (Reuters) - Taiwan's China Airlines

will split an order for its long-haul fleet renewal

between Boeing ( BA ) and European rival Airbus and buy

freighters from the U.S. planemaker in a closely watched deal

worth almost $12 billion.

Taiwan's largest carrier had been considering the 777X, of

which the 777-9 is a variant, and A350-1000 as replacements for

its fleet of 10 Boeing 777-300ERs and to provide capacity for

future growth, sources have told Reuters previously.

China Airlines said on Thursday that it would buy 10 Boeing

777-9 aircraft and 10 Airbus A350-1000s as well as four 777-8

freighter aircraft for $11.9 billion, with deliveries for the

new aircraft starting from 2029.

"China Airlines has been actively planning its fleet size

and is steadily expanding its presence in the global passenger

and cargo markets," it said in a statement.

The A350s will be powered by Rolls-Royce engines

while the 777-9s will be powered by GE engines, it added.

Multibillion-dollar deals for new aircraft often have to

take political as well as business considerations into account -

especially in the case of Taiwan, given its international

situation and pressure it faces to give in to China's

sovereignty claims, which are rejected by the democratically

elected government in Taipei.

The United States is Taiwan's most important international

backer and arms supplier despite a lack of formal diplomatic

ties, and China Airlines' majority owner is the Taiwan

government.

China Airlines Chairman Hsieh Shih-chien said in October

that the carrier was not facing any political pressure on the

decision about its long-haul fleet.

China Airlines shares closed 1% down on Thursday, in line

with the broader index.

(Reporting by Ben Blanchard

Editing by Muralikumar Anantharaman and David Goodman

)

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