Taoyuan at the Crossroads China Airlines Reshapes Fleet Strategy Amid Widespread Boeing 787 Delivery Disruptions Affecting Routes Across New York, London, and Greater Asia

Published on June 24, 2025

Fleet Upgrade Faces Turbulence Amid Boeing Delays

China Airlines, Taiwan’s longest-standing carrier founded in 1959, is experiencing major setbacks in its ongoing fleet renewal strategy due to significant delays in receiving Boeing 787-9 aircraft. These disruptions have forced the airline to extend the operational lifespan of its older aircraft, notably the Airbus A330s and Boeing 737-800s, which were previously scheduled for retirement or lease return. Now, instead of being phased out, many of these planes will remain in use longer, with lease extensions negotiated to cover the gap in new aircraft availability.

The airline had made a substantial investment in 2023, placing nearly $12 billion worth of orders for new long-haul jets, dividing the deal between Boeing and Airbus. Included in this order were 24 Boeing 787s, of which 18 are the 787-9 model—currently affected by delivery delays—and six are the longer 787-10 variant. These aircraft were intended to strengthen both regional and intercontinental services.

Contractual Friction and Uncertain Timelines

Although the delivery of the 787-9s was initially expected much earlier, Boeing has only stated that shipments are expected to “basically” commence by the end of 2025. No concrete schedule has been provided. The terms of the agreement, however, offer some protection to China Airlines, particularly in cases where delays stem from supply chain problems—in which case Boeing is liable for compensation. If the delays arise from other causes, however, no reimbursement will be provided, as per the terms outlined in the contract.

This situation is not unique to China Airlines. Similar delivery complications are being reported by several airlines around the world. Such widespread issues pose a major challenge to fleet planning, route scheduling, and passenger volume management across the global aviation sector.

Mandarin Airlines Set for Regional Transformation

Despite these challenges, China Airlines remains committed to growth, especially in the regional sector. The airline is actively planning to restructure Mandarin Airlines, its subsidiary carrier, which currently operates mostly domestic routes using ATR-72 turboprop planes. There are clear intentions to transition Mandarin Airlines into a regional jet operator, focusing on enhancing connectivity across central and southern Taiwan. Though no specific aircraft types have been revealed, the company is already in discussions with aircraft lessors to support this strategic shift.

Strategic Expansion with New Aircraft and Terminal

Looking beyond the fleet delays, China Airlines has kept an eye on the future by securing orders for next-generation, fuel-efficient aircraft such as the Boeing 777-9 and Airbus A350-1000. These aircraft are expected to be instrumental in expanding long-haul services to destinations like New York and London, improving both capacity and fuel economy. The addition of these jets will not only boost operational efficiency but also position the airline to meet rising post-pandemic travel demand.

Additionally, the upcoming third terminal at Taoyuan International Airport is expected to bring major infrastructure improvements. With the first phase scheduled to open later this year, the terminal is poised to significantly enhance passenger flow, modernize transit capabilities, and strengthen Taiwan’s status as a regional travel hub. The airport’s location offers a natural geographic advantage, serving as a vital link between the Pacific and Asia.

Navigating a Crowded Competitive Space

Operating in an increasingly competitive aviation environment, China Airlines faces stiff rivalry from other domestic full-service carriers. While Taiwan’s local travel market is relatively limited, the transit traffic segment has proven lucrative. Airlines are focusing efforts on making Taiwan a key stopover point in Asia.

Compared to regional competitors, Taoyuan Airport offers distinct advantages. For example, Seoul’s Incheon is often described as too large and complex for smooth passenger transitions, Tokyo’s airports are burdened by high landing fees, and Hong Kong’s facilities are impacted by ongoing political complications. In contrast, Taoyuan’s new terminal is designed to streamline transit traffic, positioning it as a more traveler-friendly alternative in East Asia.

Broader Impact on Global Travel Trends

The implications of the 787-9 delivery delays go far beyond Taiwan. Airlines across the globe that rely on the timely acquisition of modern aircraft to enhance efficiency, fuel savings, and customer experience are now being forced to reconsider expansion strategies.

This situation may lead to:

• Reduced availability of new routes or added flight frequencies
• Increased ticket prices, driven by operational inefficiencies
• Passengers flying in older aircraft with fewer modern features
• Slower progress toward emissions reduction and sustainability goals

Even in the face of such headwinds, China Airlines is working around these constraints through lease extensions, fleet adjustments, and infrastructure investments. These efforts reflect a broader industry trend where airlines must become more adaptable, resilient, and strategically agile in an unpredictable global supply environment.

In Summary

• 24 Boeing 787s were ordered, including 18 787-9s currently facing delivery delays.
• Older A330s and 737-800s will remain in service longer due to postponed replacements.
• The airline may receive compensation for some delays, depending on their causes.
• Despite setbacks, expansion continues with new 777-9s, A350-1000s, and a new terminal in Taoyuan.
• Mandarin Airlines is shifting from domestic to regional jet services, targeting central and southern Taiwan.

While aircraft delivery disruptions pose serious obstacles, China Airlines is clearly pushing forward with strategic plans to modernize its fleet and broaden its global presence, ensuring that Taiwan remains a key player in international aviation.