China Airlines extends leases on older jets due to supply chain delays

China Airlines is finalizing lease extensions for several older aircraft and ensuring continued availability amid production setbacks from both manufacturers. The airline is working directly with Boeing and Airbus to speed up delivery timelines for outstanding orders.

According to Reuters, China Airlines' contract with Boeing includes provisions for compensation tied specifically to supply chain delays. George Kao, Chairman of China Airlines, told Reuters: "We are at present being greatly impacted. Some aircraft that were scheduled to be phased out, or handed back at the end of their lease, as some are leased, will remain and have their leases extended."

International Air Transport Association Director General Willie Walsh described industry-wide delivery timelines as “off-the-chart unacceptable,” warning that delays could persist throughout the rest of the decade.

Despite this, China Airlines continues with its long-term modernization plans. Toward the end of last year, it placed orders with both Boeing and Airbus for new-generation widebody jets, including ten Airbus A350-1000s and ten Boeing 777-9s. These aircraft are intended to support growth on long-haul routes such as New York and London.

China Airlines currently operates a fleet of around 86 aircraft including 17 Airbus A321neos, 16 A330-300s, 15 A350-900s, ten Boeing 737-800s among others.

In addition to current plans, China Airlines confirmed its intent to acquire up to 13 additional aircraft—five Airbus A350-900s and eight Airbus A321neos—as part of a $2 billion capacity expansion proposal approved by its board of directors.