China Airlines announced plans to spend NT$58.8 billion ($2 billion) on additional Airbus aircraft, intensifying an expensive fleet modernization that has already strained the Taiwanese carrier’s finances with a separate NT$352 billion ($12 billion) commitment last year.
The flag carrier will acquire five A350-900 long-haul jets and eight A321neo aircraft for regional routes, according to a Wednesday filing with Taiwan’s stock exchange. Five A321s will come from Air Leasing Corporation at NT$7.06 billion ($240 million), with negotiations continuing for the remaining three aircraft.
The A350s carry a maximum price tag of NT$57.8 billion ($1.965 billion) for purchase or NT$33.8 billion ($1.148 billion) through leasing arrangements, though the airline provided limited details on financing terms.
The accelerated spending comes as China Airlines faces Boeing 787 delivery delays that have forced the carrier to extend leases on aging Airbus A330s and Boeing 737-800s. The delays threaten operational efficiency and could trigger compensation claims against Boeing.
Taiwan’s oldest airline is competing against EVA Air and newcomer Starlux Airlines, which recently ordered additional A350s. The latest purchases add to China Airlines’ existing fleet of 15 A350-900s and 15 A321neos, raising questions about overcapacity in Taiwan’s limited aviation market.
Chairman George Kao, who took over in March, acknowledged the Boeing delays have disrupted carefully planned fleet renewal timelines.
