China Airlines to Invest Over $2 Billion in Airbus Fleet Expansion
TAIPEI (Reuters) -Taiwan's China Airlines will spend more than $2 billion to add more Airbus aircraft to its fleet, consisting of five A350-900 long-haul jets and eight A321neo aircraft for medium and short-haul routes, it said on Wednesday.
The carrier, Taiwan's oldest airline, in the midst of a fleet renewal and last year split an order for new long-haul aircraft worth almost $12 billion at list prices between U.S. planemaker Boeing and European rival Airbus.
In a statement to the Taiwan stock exchange, China Airlines said that five of the A321s would come from Air Leasing Corporation at a cost of $240 million, with negotiations ongoing for the other three aircraft.
The A350s will cost no more than $1.965 billion, or come at a cost of $1.148 billion for leasing them, the airline said without providing further detail.
China Airlines' chairman told Reuters this
week that the company was postponing retirement of some of its older aircraft owing to delays in deliveries of previously ordered Boeing 787-9 jets.
The airline already operates 15 of the A350-900 aircraft and its 18th A321 is due to arrive soon.
(Reporting by Ben BlanchardEditing by David Goodman)
