China Airlines, Taiwan’s national carrier, has announced a postponement in the retirement of some of its older aircraft due to significant delays in the delivery of Boeing 787-9 jets. The deferral, which could trigger compensation from Boeing, marks a notable disruption in the airline’s fleet renewal strategy.
The carrier, Taiwan’s oldest airline established in 1959, is undergoing a major fleet modernisation programme. In a procurement valued at nearly US$12 billion at list prices, the airline split long-haul aircraft orders between Boeing and Airbus last year. As part of the renewal, China Airlines ordered 24 Boeing 787 aircraft, comprising 18 of the 787-9 variant and six 787-10s, to serve regional and select long-haul routes.
Chairman George Kao, who assumed the role in March, confirmed that delays—particularly in the 787-9 deliveries—have impacted plans to replace ageing Airbus A330s and Boeing 737-800s with 787-9s and A321neos. As a result, aircraft originally scheduled for retirement or lease return will continue in operation, with some leases now set to be extended.
“We are at present being greatly impacted,” Kao told Reuters from the airline’s headquarters in Taoyuan, home to Taiwan’s primary international gateway. Boeing has yet to provide China Airlines with a definitive delivery schedule, though initial shipments are now expected to commence towards the end of 2025.
Kao noted that the contract with Boeing includes provisions for compensation in the event of delivery delays attributed to supply chain issues. “This is written into the contract,” he said. “If it’s in the supply chain, the responsibility is Boeing’s, and Boeing has to provide some compensation. But if it’s not, then there is no compensation. It’s all recorded in the contract.”
Boeing has not responded publicly to the developments.
The airline is not alone in experiencing delivery challenges. Willie Walsh, Director General of the International Air Transport Association (IATA), recently described forecasted aircraft delivery delays through the remainder of the decade as “off-the-chart unacceptable.”
Despite the disruption, Kao remains optimistic about China Airlines’ growth trajectory. The arrival of more fuel-efficient aircraft, such as the Boeing 777-9 and Airbus A350-1000—both ordered last year—will support expansion on routes to destinations including London and New York. Additionally, the opening of the new third terminal at Taoyuan International Airport later this year is expected to enhance capacity and passenger experience.
Further fleet development is also under consideration for subsidiary Mandarin Airlines, which currently operates ATR-72 turboprops on domestic routes. Kao revealed plans to equip Mandarin with jet aircraft to strengthen regional operations from Taiwan’s southern and central regions. Discussions are underway with lessors, although specific aircraft models have not been disclosed.
Competition in Taiwan’s aviation sector continues to intensify. In addition to long-standing rival EVA Air, China Airlines faces growing pressure from emerging player Starlux Airlines, which recently expanded its fleet with an order for 10 additional A350s.
Kao, however, sees continued opportunity, citing Taiwan’s strategic geographic position as a competitive advantage for transit traffic. He noted that Taoyuan airport’s more manageable size offers a favourable alternative to larger or more politically complicated hubs such as Seoul Incheon, Tokyo, or Hong Kong.
“Our passengers are not all Taiwanese; many are transit. Because Taiwan’s location, connecting the Pacific to all of Asia, is really very convenient,” Kao said.
-Reuters
