China Airlines Approves 7.85 Billion Modernization Plan for Fleet

China Airlines Approves Major Fleet Modernization Plan

On November 26, 2025, the board of directors at China Airlines, Taiwan’s largest carrier, officially approved a substantial capital expenditure plan aimed at revitalizing its fleet. This strategic move involves a total investment capped at approximately NT$246 billion (US$7.85 billion). The decision marks a pivotal moment for the airline as it seeks to modernize both its passenger and cargo operations through a diversified acquisition strategy involving both Airbus and Boeing aircraft.

We observe that this acquisition is not merely about expansion but represents a calculated effort to replace aging airframes with next-generation technology. The approved plan includes the purchase of 16 new widebody aircraft and a significant investment in spare engines. By splitting the order between the two major aerospace Manufacturers, China Airlines appears to be mitigating supply chain risks while optimizing its fleet for specific long-haul and high-capacity routes.

Concurrently, the airline is accelerating the retirement of its older fleet. The board has authorized the disposal of four Boeing 747-400F freighters, signaling the end of the four-engine era for the carrier’s cargo division. This transition underscores a broader industry trend toward twin-engine efficiency and sustainability, positioning China Airlines to better compete in the post-pandemic global market.

Acquisition Breakdown: Passenger and Cargo Fleets

The core of this Investments lies in the acquisition of 16 widebody aircraft, split evenly between passenger and cargo needs, as well as between Airbus and Boeing platforms. On the passenger side, the airline has committed to purchasing five Airbus A350-1000s and five Boeing 777-9s. The A350-1000 will complement the carrier’s existing A350-900 fleet, offering increased capacity and range for long-haul operations. Meanwhile, the Boeing 777-9, the latest iteration of the 777 family, is intended to replace older widebody jets, likely the aging 777-300ERs, ensuring the airline maintains a competitive edge in cabin comfort and operational efficiency.

regarding the cargo division, the board approved the purchase of six freighters to bolster Taiwan’s status as a global logistics hub. This includes four Boeing 777-8Fs and two Boeing 777Fs. The inclusion of the 777-8F is particularly notable; as a next-generation freighter, it promises higher payload and range capabilities compared to current models. The two standard 777Fs will likely provide immediate capacity to address current market demands while the airline awaits the certification and delivery of the newer 777-8F variants.

To support these new airframes, the investment plan also covers the procurement of spare engines valued at approximately US$229 million. This procurement includes one Rolls-Royce Trent XWB-97 engine for the Airbus fleet and three GE Aerospace GE9X engines to support the incoming Boeing 777X aircraft. Securing these assets upfront is a prudent measure to ensure operational reliability and minimize downtime once the new aircraft enter service.

The split-order strategy allows China Airlines to mitigate delivery delays and leverage the specific strengths of both Airbus and Boeing platforms for different route profiles.

Strategic Disposal of the 747-400F Fleet

As new technology enters the fleet, older assets are being phased out. A critical component of the November 26 announcement is the disposal of four Boeing 747-400F freighters. These iconic “Queens of the Skies” have served as the backbone of global cargo logistics for decades, but their four-engine configuration makes them less fuel-efficient compared to modern twin-engine alternatives. The shift to the 777 freighter family represents a significant upgrade in terms of fuel economy and maintenance costs.

We can confirm that buyers have already been secured for half of the aircraft slated for disposal. Cargolux, the Luxembourg-based cargo carrier, has agreed to purchase two of the 747-400Fs. The transaction value for these two aircraft is estimated at NT$1.25 billion (approximately US$260 million). This sale not only generates immediate capital for China Airlines but also facilitates a smoother transition to a more sustainable fleet structure.

Negotiations regarding the sale of the remaining two 747-400Fs are currently ongoing. The successful offloading of these assets is crucial for the airline’s modernization goals. By replacing these older jets with the incoming 777F and 777-8F models, China Airlines is effectively lowering its carbon footprint per ton of cargo while maintaining the high capacity required to service major trade routes between Asia, North America, and Europe.

Concluding Section

The approval of this NT$246 billion investment plan signifies China Airlines’ robust confidence in the future of international travel and commerce. By balancing orders between Airbus and Boeing, the carrier is hedging against supply chain volatility, a lesson likely learned from recent industry-wide Deliveries delays. The introduction of the A350-1000 and 777-9 will elevate the passenger experience, while the modernized cargo fleet ensures the airline remains a dominant player in global logistics.

Looking ahead, the operational integration of these mixed fleets will be the next major challenge. However, the long-term benefits of improved fuel efficiency, reduced maintenance costs, and increased payload capabilities present a strong business case. As the 747-400Fs depart for their new homes with Cargolux, China Airlines is clearly positioning itself for a leaner, more efficient future.

FAQ

Question: What is the total value of China Airlines’ new fleet investment?
Answer: The board approved a capital expenditure budget of approximately NT$246 billion (US$7.85 billion).

Question: Which aircraft models is China Airlines purchasing?
Answer: The Airlines is acquiring 16 aircraft in total: 5 Airbus A350-1000s, 5 Boeing 777-9s, 4 Boeing 777-8Fs, and 2 Boeing 777Fs.

Question: What is happening to the older Boeing 747-400 freighters?
Answer: China Airlines is selling four 747-400Fs. Two have already been sold to Cargolux for approximately NT$1.25 billion, while negotiations for the remaining two are ongoing.

Sources

Sources: Taiwan News