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CAL engine deal finally goes to US' General Electric

China Airlines Co (華航), the nation's largest carrier, said yesterday that it will buy engines made by General Electric Co of the US for 22 aircraft it ordered last October, amid reports of a political tussle between Washington and London over the issue.

General Electric beat UK-based Rolls-Royce Group Plc and United Technologies Corp's Pratt & Whitney unit for the order.

The airline denied earlier media reports of political influence on the deal.

"Following thorough evalua-tion, we have decided to purchase all engines from General Electric, which is in our best interest," the airline said in a statement issued yesterday.

"General Electric is very competitive in pricing," the airline said. "It also provides other good terms including the transfer of technology and maintenance upgrades."

General Electric also promised to help China Airlines to sell its last B747-200 freighter, it added.

Each new Airbus and Boeing aircraft will take two of General Electric's CF6-80E1A4 engines, said Luisa Tu, General Electric's spokeswoman in Taiwan.

Tu declined to comment on the value of the transaction.

The airline did not provide the total cost of the deal, but local media said the total list price for the engines is NT$20 billion (US$600 million).

Competition over the engine deal followed the bitter battle last October between Europe's Airbus SAS and US' Boeing Co involving diplomatic lobbying over a new China Airlines fleet.

The state-controlled carrier eventually compromised by purchasing 12 Airbus A330- 300s and 10 Boeing 747-400s.
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