This decision follows the conclusion of the U.S. presidential election, where Republican Donald Trump has returned to office, prompting Taiwan to emphasize its commitment to maintaining strong relations with the new U.S. administration.
As Taiwan's largest airline, China Airlines is considering the Boeing 777X and the Airbus A350-1000 to replace its fleet of 10 Boeing 777-300ERs and to accommodate future growth.
Sources indicate that China Airlines may place an order for up to 20 passenger jets, likely splitting the order evenly between the two manufacturers. The selection of freighters is also being influenced by the recent U.S. elections.
The potential deal for the passenger aircraft could be valued at nearly $4 billion after standard industry discounts, based on estimated delivery prices from aviation consultancy Cirium Ascend. However, the final decision will depend on the airline's board, and there is currently no assurance regarding the specific numbers and types of aircraft in any formal agreement.
In 2022, China Airlines ordered 16 Boeing 787-9s to modernize its aging fleet of Airbus A330s.
China Airlines stated to Reuters that it plans its fleet according to market demand and corporate developments, carefully evaluating the relevant technical and commercial factors to choose the most suitable aircraft type.
Both Airbus and Boeing declined to comment on the matter.
On Thursday, shares of China Airlines rose by 3.3%, outperforming the broader market index, which gained 0.8%.
When negotiating multi-billion-dollar aircraft deals, political factors often play a significant role alongside business considerations, particularly for Taiwan, which faces international pressures regarding its sovereignty claims from China, a stance firmly rejected by the democratically elected government in Taipei.
The United States serves as Taiwan's primary international supporter and arms provider, despite the absence of formal diplomatic relations, with the Taiwan government being the majority owner of China Airlines.
During Trump's initial term, he expressed strong support for Taiwan; however, his remarks during the campaign, suggesting that Taiwan should finance its own defense and alleging that the island had appropriated U.S. semiconductor business, caused concern in Taipei.
In response to Trump's electoral victory, Taiwan's government promptly extended its congratulations and expressed confidence in maintaining robust relations.
According to industry insiders, Taiwan has historically been regarded as a significant market where diplomatic factors can influence purchasing decisions, in addition to the rigorous technical assessments conducted by airlines.
Nonetheless, last month, the chairman of the airline refuted claims of any political influence affecting its fleet decisions.
Hsieh Shih-chien informed the media that the decision-making regarding aircraft purchases was solely the responsibility of China Airlines.