China Airlines buying 10 Boeing, 12 Airbus planes

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China Airlines buying 10 Boeing, 12 Airbus planes

SEATTLE (AP) =97 Taiwan's China Airlines Ltd. has placed the year's largest=
=20
order for Boeing jumbo jets, agreeing to buy 10 747-400s worth a total of=20
$2 billion at list prices, Boeing Commercial Airplanes confirmed Tuesday.=20
China Airlines also placed orders with Europe's Airbus for 12 airplanes and=
=20
took options for six more. Boeing's deal is for six, 416-passenger 747-400s=
=20
and four 747-400 freighters, with the first plane to be delivered in July.=
=20
The airplanes were previously listed among Boeing's orders for the year,=20
but attributed to an unidentified customer. Terms of the orders were not=20
released. Airlines nearly always negotiate  discounts to list prices. China=
=20
Airlines currently owns 38 Boeing jetliners: 13 747-400 passenger planes,=20
12 747-400 freighters, two 747-200 freighters, and 11 smaller 737-800s. A=20
few months ago, Taiwanese lawmakers accused China Airlines of bowing to=20
pressure from the U.S. government and favoring the Boeing planes over the=20
Airbus jets. Some Taiwanese officials argued that Taiwan should be partial=
=20
to the U.S.-based company because America is one of the island's most=20
important friends. The United States is Taiwan's most likely defender if=20
China ever acts on a long-standing threat to attack the island. China=20
Airlines said its decisions to buy planes would be based on business, not=20
political, issues.

The airline said the 12 Airbus A330 series aircraft would be delivered from=
=20
2004 to 2007. The A330s will replace older mid-range A300-600s in the=20
carrier's fleet. The new aircraft can be configured for 290-320 seats,=20
amounting to a capacity gain of at least 15 percent compared with the=20
A300-600s, China Airlines said. The new Boeing jets will replace four=20
Boeing jets China Airlines currently leases from the government and two=20
older Boeing cargo aircraft. The Airbus jets will be deployed on regional=20
routes, while the Boeings will serve long haul destinations in North=20
America and Europe, China Airlines said. "The decision to acquire new=20
Airbus A330s and Boeing B747-400s meets the company's requirement of=20
upgrading our mid-range and long haul fleet for further operation=20
expansion," Philip Wei, China Airlines' president, said in a statement.=20
Boeing's largest order in 2002, a dismal year for the airline industry,=20
came in January from Ryanair, the Irish-based budget carrier. It ordered=20
100 737-800 aircraft and took options on 50 more. The list price was $9.1=20
billion, but Ryanair said Boeing's offer was "exceptionally=20
competitive."  For all of 2002, Boeing said it has received 221 new orders,=
=20
with 47 orders canceled, converted or otherwise changed, for a net of 174.=
=20
That compares with 328 orders in 2001 and 605 in 2000.


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