Taiwan's China Airlines to buy 16 Boeing 787s in $4.6bn deal

Taiwan's China Airlines said Tuesday it would buy 16 Boeing 787 widebody planes to replace its aging fleet of Airbus A330s following a widely-watched contest held against the backdrop of regional tensions. The politically sensitive deal, worth $4.6b at list prices, was announced by the government-backed carrier weeks after a visit to Taipei by US House of Representatives Speaker Nancy Pelosi angered Beijing and stoked Sino-US trade tensions. Boeing, which is trying to rebuild its business in China, was seen as the front-runner amid political issues surrounding the China-claimed, self-ruled island but had been at pains to avoid using her visit to actively lobby for a 787 deal, industry sources said earlier this month. Boeing's CEO said last month that 737 MAX deliveries to China remained blocked by COVID-19 and a "geopolitical overhang", in a reference to simmering trade tensions between the world's two biggest economies. The order from Taiwan, however, is the latest sign of a long-awaited pickup in widebody demand and a boost for the US aircraft-maker weeks after it resumed deliveries of its premier long-haul model following a 15-month halt over production issues. China Airlines said the 787s would allow it to phase out its fleet of 22 older A330s. The orders for the 787-9 version include options for eight more as well as conversion rights to the higher-capacity 787-10 model. The carrier, one of the world's biggest freight airlines, cited the 787's cargo-carrying capacity as one of the reasons behind its selection in a contest that industry sources said pitted the 787 against the A330neo. Deliveries of the 787s are expected to start in 2025, the airline said.<br/>