EVA Airways turns to new Boeings to save fuel

With rising oil prices accounting for a growing chunk of airlines' costs and significantly eroding their profits, EVA Airways Corp (長榮航空) is turning to Boeing's latest models in a bid to cut back on jet-fuel consumption, company officials said yesterday.

Reiterating that it might still propose a hike in fuel surcharges, EVA Airways yesterday introduced the latest Boeing B777-300ER in its fleet at a press conference, showcasing its luxury in-flight entertainment facilities and comfortable seating arrangements.

The company is scheduled to take delivery of the nation's first B777-300ER passenger jet at the end of this month from Seattle.

The market price of this model, designed to fly long-haul routes such as Taipei-London, is over US$200 million, according to an EVA Airways official who refused to be named.

"This model is very competitive, as its twin engines can save as much as 20 percent of fuel compared with the Airbus 340, which is equipped with four engines," EVA Airways spokesman and executive vice president Nieh Kuo-wei (聶國維) said yesterday.

He added that two-engine planes will become more popular in future, as they can produce stronger thrust with less noise.

To replace its old aircraft, EVA Airways will take delivery of three new Airbus planes by the end of next year, and 15 Boeing 777s by 2009.

"Skyrocketing oil prices are eating into our margins. Now oil costs make up of 30 percent of our total expenditure, up from more than 20 percent in the past," said Steve Lin (林寶水), chairman of the nation's second-largest carrier.

Nevertheless, EVA Airways reported pre-tax revenues of NT$41.1 billion (US$1.3 billion) for the first six months of the year, which represents 8.6 percent growth from a year ago.

World oil prices hovered at around US$40 a barrel last year, but peaked at more than US$60 this year.

Despite increasing pressure to reduce oil spending, EVA Airlines' bigger rival China Airlines (華航) also reported strong growth thanks to the economic recovery, which has led to an increase in the number of leisure trips as well as cargo transport demand, company spokesman Roger Han (韓梁中) said.

China Airlines raked in NT$49.8 billion in sales in the first two quarters of the year, jumping by 13.8 percent from a year ago, he said.