ANDREW DOYLE / SINGAPORE

Carrier nears final choice on 20-aircraft order to replace A300s on regional services

Airbus and Boeing are battling to clinch a long-awaited order for up to 20 widebodies from China Airlines (CAL), in one of only a handful of Asian competitions heading for conclusion this year.

The two manufacturers handed proposals to the Taiwanese carrier in early May based around A330-300s and Boeing 777-200/300s, to replace the airline's fleet of 12 A300-600Rs on regional routes. CAL is looking to place a firm order for 14 aircraft and take six options, say industry sources, and a decision is expected before the end of the year. Deliveries of the new widebodies are tentatively slated to begin in 2005, say the sources.

CAL says it is in "constant touch" with Airbus and Boeing regarding its requirement, but has yet to specify a formal timetable for the selection process.

CAL's 55-strong aircraft fleet is equipped with a mix of GE, P&W and CFM International engines, and with both aircraft types offered with all three manufacturers' engines, a fierce three-way battle will follow the airframe decision.

CAL already flies A340-300s, and Airbus is heavily pushing the A330's high level of commonality with the long-range model, which would enable CAL to exploit support synergies.

The airline took options on four A330s when it placed the A340 order in 1999, though these were cancelled in late 2000 when CAL started looking at a much larger regional widebody order.

The European manufacturer is understood to have offered a trade-in deal on some of the A300-600Rs, which were built between 1989 and 1997 and are increasingly in demand for conversion to freighters.

Only seven A300s are owned outright by CAL, with the remaining five on operating leases. Boeing, meanwhile, has previously told the airline it is open to the idea of buying back its A340s in return for a 777 sale.

Source: Flight International