Taiwan’s Chinese airline postpones retirement of old aircraft due to delays in Boeing 787
Ben Blanchard
Taiwan (Reuters) – Taiwan’s Chinese airline is delaying the retirement of some of its older aircraft due to delays in Boeing 787-9 jets, which could lead to planner compensation, the airline’s newly appointed chairman said.
Founded in 1959, Taiwan’s oldest airline is in the midst of a fleet renewal and last year, orders for new long-haul aircraft were allocated at a list price between Boeing and European rival Airbus, worth nearly $12 billion.
Chinese Airlines also ordered 24 Boeing 787s for regional and some longer distance routes, including 18 787-9 and 6 extensions of 787-10 variants.
But Chairman George Kao said China Airlines’ fleet renewal plans replaced the aging Airbus A330S and Boeing 737-800 with 787-9, while the Boeing 737-800 and A321NEOS were hit by delays, especially at the age of 787-9.
“We are currently suffering from a huge impact. Some aircraft that are planned to be eliminated, or are refunded at the end of the lease, and some will be retained and extended leases,” he told Reuters.
Boeing has not provided the exact time frame for 787-9 delays to Chinese airlines, although it says delivery will start “basically” from the end of 2025.
When asked if Chinese airlines were seeking compensation, he said: “This is the contract written into the contract.”
“For example, if it’s in the supply chain, the liability is Boeing, and Boeing has to provide some compensation. But if it’s not, then there’s no compensation. It’s all recorded in the contract.”
Boeing did not respond to a request for comment.
Other airlines are facing similar problems.
Director-General Willie Walsh, Director-General of the International Air Transport Association (IATA), whose group represents airlines worldwide, this month called forecasts of delays in aircraft delivery in the decade “unacceptable”.
Still, Kao is optimistic about the expansion plan, suggesting that the fuel-efficient 777-9 and A350-1000s ordered last year will add more capacity to routes like New York and London, as well as a new third yard at Taoua Airport, the first part to open later this year.
He noted that the auxiliary Mandarin Airlines has further added aircraft, which flew domestic routes almost entirely using the ATR-72 turboprop and is refitting regional routes focused on new jets from the southern and central Taiwan.
