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China Airlines announced this week that it would be buying 16 new Boeing 787 Dreamliner to replace its Airbus A330 plane units. The company said the deal for the purchase is worth $4.6 billion.
China Airlines apparently chose the Boeing Company’s brand of airplanes as it plans to retire many of its planes due to their age. The airline is set to use the new Boeing aircraft for its medium and long-haul fleet, as per Reuters.
The Taiwanese air carrier confirmed its decision to buy 16 Boeing 787s on Tuesday, Aug. 30. The multi-billion dollar deal has been described as a politically sensitive matter thus, there was tension when the company made the decision and announcement.
It was noted that the deal was publicly disclosed by China Airlines just a few weeks after the U.S. House of Representatives Speaker, Nancy Pelosi, visited the country. The state visit has been controversial as Beijing has been strongly opposing the event.
China did not conceal its anger when Pelosi’s visit still pushed through and launched military exercises around Taiwan, firing missiles. Apparently, the event only added fuel to the Sino-US trade tensions.
In any case, Boeing has been attempting to rebuild its business in China, but the situation may make it hard for the plane maker to reach its goal at this time. In fact, the company’s president and chief executive officer, David L. Calhoun, revealed last month that the deliveries of 737 MAX to China are still blocked due to “geopolitical overhang” and COVID-19.
The latest order from Taiwan may pave the way for more orders from various airlines and eventually give a boost to its future sales and deliveries. Meanwhile, China Airlines said that the arrival of Boeing 787s would allow it to phase out its fleet of old Airbus A330s. It has 22 units of planes that need to be replaced already.
Boeing is expected to deliver China Airlines’ order of the 787s starting in 2025. Simple Flying reported that this is the American aerospace company’s first order of its 787 Dreamliner in the last 15 months. The orders include the 787-9 version and options for eight higher-capacity 787-10 models.
