China Airlines Co (華航), the nation's largest carrier, has decided to buy aircraft from both Boeing Co and Airbus SAS, Minister of Transportation and Communications Lin Lin-san (林陵三) said yesterday.
While the minister said he had not received a final purchase report by China Airlines, he is aware that the carrier has secured fair pricing from both Boeing and Airbus.
The ministry is responsible for overseeing the state-run carrier.
A source close to Lin told the Taipei Times yesterday that China Airlines has decided to buy 12 Airbus A330-300 passenger planes and 10 Boeing 747-400 cargo jets in a deal worth an estimated US$3.4 billion.
Boeing stands to rake in a sweet US$1.9 billion in the deal, while Airbus will take in US$1.5 billion.
Each Boeing 747-400 costs as much as US$211 million and the Airbus A330-200 is priced at US$132 million, according to the companies' list prices.
The carrier is purchasing aircraft from both Boeing and Airbus in a bid to modernize its aging fleet.
A China Airlines official declined to say whether the carrier has reached a purchase agreement with either Boeing or Airbus.
"We are still in talks with Boeing and Airbus ... on details such as price, options and future maintenance work," said Roger Han (韓梁中), spokesman for China Airlines. "But we've definitely decided to buy both Airbus A330s and Boeing 747s ... and now it is a buyers' market, especially during the slow economy."
China Airlines wants to buy the Airbus A330-300 planes to simplify its fleet and find a suitable mid-range replacement for its six A300-600Rs. In addition, the airline is seeking to buy more Boeing 747s to expand this fleet from its current 25 jets.
The carrier is expected to make a final decision soon, Han said.
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