The airline is undergoing a significant fleet modernisation effort. In a major deal last year, it split a nearly USD 12 billion long-haul aircraft order between US-based Boeing and European manufacturer Airbus. As part of its strategy, China Airlines placed orders for 24 Boeing 787s, comprising 18 787-9s and six 787-10s, intended for regional and select long-haul operations.
However, Kao confirmed that the timeline for phasing out ageing Airbus A330S and Boeing 737-800s is being affected by delivery delays, particularly of the 787-9 model. The plan to replace them with 787-9s and A321neos has been disrupted, prompting lease extensions on aircraft originally scheduled for retirement.
"We are at present being greatly impacted. Some aircraft that were scheduled to be phased out, or handed back at the end of their lease, as some are leased, will remain and have their leases extended," Kao told Reuters during an interview at China Airlines’ headquarters in Taoyuan, near Taiwan’s primary international airport.
While Boeing has not provided China Airlines with a precise delivery schedule, the US planemaker has indicated that 787-9 deliveries will "basically" commence by late 2025. Kao, who began his career as a flight attendant and later trained as a pilot, noted that the matter of compensation is governed by the purchase agreement.
"This is written into the contract," Kao said. "For example, 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 issued a public response regarding the delay or potential compensation.
