China Airlines Co (
State-controlled China Airlines in December ordered a fleet of 10 747-400s from the Seattle-based company. But Minister of Transportation and Communications Lin Ling-san (
PHOTO: CNA
Lin is also the chairman of the China Aviation Development Foundation (航發會), which has a stake of 71 percent in China Airlines.
The airline, however, maintained a low profile yesterday, downplaying the possibility of revoking the Boeing order.
"China Airlines has followed through on the government's instructions and sent a protest letter to Boeing," a company official said yesterday.
The protest letter stated that, as an important customer to Boeing, China Airlines regretted Boeing's disrespect toward the vice president and demanded a reasonable explanation from the company, said the official, on the condition of anonymity.
Now that China Airlines has inked international contracts with Boeing, a unilateral move to nullify the deal may cost China Airlines a huge amount of legally obligatory compensation fees as well as Taiwan's future business reputation in the international community, a market watcher said yesterday.
"Poor manners to the vice president don't constitute a lawful excuse [for Taiwan] to unilaterally nullify the deal," said Mike Chow (周道中), a manager with Yuanta Core Pacific Securities Corp (元大京華證券).
"Breaching any international contract now is sure to scare away the nation's future deal-makers, who dare not sign any contracts with Taiwan," Chow said.
Meanwhile, Boeing spokesman Mark Hooper said in a statement that, "Boeing intended no affront to Vice President Lu or to the people of Taiwan, who have been valued friends and customers for more than 30 years."
The planemaker also defended itself over a canceled visit by Lu to its Seattle plant.
``Rather than a short, private visit to Boeing, we felt the port visit would be a more appropriate and meaningful venue," Hooper said.
"The Port of Seattle visit offered a more robust and public event that includes other businesses in the area associated with Taiwan."
``This is a regrettable occurrence,'' Hooper said.
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