Nicholas Ionides ATI SINGAPORE

Taiwan's China Airlines (CAL) has finalised a long-awaited fleet renewal plan with $5.6 billion worth of orders for up to 36 aircraft from Airbus Industrie and Boeing.

The split order, the largest in the history of Taiwanese civil aviation, covers firm orders for 13 Boeing 747-400 freighters, five Boeing 737-800s and seven Airbus A340-300s. Deliveries begin next July.

The deals also include options for four 747-400Fs and two 747-400 passenger aircraft, plus options for one A340-300 and four Airbus A330-300s. The airline has been working on its fleet renewal plan for some time and says it will reduce the number of aircraft types in its fleet to three by March 2003.

Although the orders for 747-400Fs and 737-800s had been expected, CAL's purchase of A340s has come as a surprise because many had expected it to opt for Boeing's 777.

In 1995, the airline signed a letter of intent for four of the type but did not confirm the deal.

When word leaked of the planned Airbus order a week before the contract signings in early August, some in the US Government suggested CAL had decided to order the A340 instead of the Boeing 777 because Taiwan was upset with the USA over its policy towards China. The USA advocates a so-called "one-China" policy, under which it does not recognise Taiwan as an independent state. CAL has refuted the allegations, saying the A340 was selected because it has four engines and does not have the operational restrictions of the twin-engined 777.

"Since the A340 has four engines, it is not subject to extended-range twin-engine operations limitations," CAL says. "So it does not need to undergo a one-year period of familiarisation testing, which allows us to accelerate our aircraft renewal schedule."

Source: Airline Business