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Foreign ministry won't interfere in CAL deal

The Ministry of Foreign Affairs won't interfere with China Airlines' (CAL's) purchase of engines for its new aircraft, a senior official said yesterday.

Spokesman Richard Shih (石瑞琦) said the ministry has conveyed the concerns and opinions expressed by the British and American representative offices in Taipei about the airline's engine procurement plans to relevant agencies. But, he said, the ministry has not meddled in CAL's decision-making process.

"We respect CAL's decision based on commercial and professional evaluations," Shih said.

Since the aircraft-engine procurement plan was unveiled, Shih said, the British and US representative offices have on many occasions expressed their concerns about the plan.

"They have expressed their hopes that their companies would be given equal opportunities in a fair and just competition for this order," Shih said.

Shih made the remarks a day after British representative to Taipei Derek Marsh and EU representative to Taipei Brian McDonald jointly called on Secretary General to the President Chiou I-jen (邱義仁) to express concerns that Rolls Royce was being unfairly shut out of the engine deal.

Chiou refused to comment on what transpired in his talks with the two officials.

According to media reports, CAL originally planned to purchase Rolls Royce's engines for its 12 Airbus A330-300s but later decided to order engines from US manufacturers General Electric or Pratt and Whitney because it would have to pay an additional US$20 million in aircraft airworthiness certification fees should it use Rolls Royce engines.

Airbus reportedly informed the airline last week that it will have to pay the engine certification fee if it wants to use Rolls Royce's TREND768 engine.

Indonesia's Garuda Airline is the only company to use this type of engine at present. If CAL decides to use the TREND768 engine, it will have to obtain US and EU certification and it will have to foot the certification bills, Airbus reportedly told CAL.

CAL has debunked all media reports about its engine deal as groundless speculation.

"The deal is still under discussion, and no final decision has been reached yet," a spokesman said.
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