Taiwan’s longest-serving carrier, established in 1959, has decided to delay retiring several of its older planes as it awaits the delivery of new Boeing 787‑9 jets. The postponement comes as a result of setbacks in the aircraft supply, a factor that may trigger contractual compensation from the manufacturer, according to the airline’s recently appointed chairman.
The carrier is undergoing a wide-ranging fleet update. Last year, it divided a major order for long‑haul aircraft—valued at nearly $12 billion at list prices—between Boeing and a major European competitor. In addition to that investment, the airline placed an order for 24 Boeing 787 aircraft to be used on regional services as well as longer‑haul routes. This order comprises 18 units of the 787‑9 configuration alongside six units of the extended‑length 787‑10 model.
Chairman George Kao explained that plans to replace its older Airbus A330 and Boeing 737‑800 aircraft with newer Boeing 787‑9 and A321neo models are now facing delays. Because new deliveries have not arrived on schedule, some aircraft that were scheduled for retirement or to be returned at the end of a lease period will continue to operate for a longer span. This step is necessary to maintain operational capacity while the airline waits for the new jets to join the fleet.
The manufacturer has indicated that deliveries of the 787‑9 jets are likely to begin at the end of 2025, although an exact delivery date remains unconfirmed. Kao, who began his career as a flight attendant before becoming a pilot and later ascending to the top leadership role, noted that the airline’s contract includes provisions for recovery should the delay stem from issues within the production process. In such a case, the manufacturer would be required under contract terms to provide compensation. If the delay is not linked to any factors within the supply chain controlled by the manufacturer, compensation would not apply.
Boeing did not comment on the matter, and several other carriers are encountering comparable delays in receiving new aircraft. Leaders from global airline organizations have recently criticized these ongoing delivery setbacks as unacceptable given the long‑term forecasts for new jet supply.
Looking forward, Chairman Kao remains positive about the airline’s broader expansion plans. Recent orders for fuel‑efficient models such as the 777‑9 and A350‑1000 are expected to increase capacity on routes to key markets like New York and London. Additionally, a new third terminal at Taiwan’s primary international airport in Taoyuan is progressing, with the first section scheduled to open later this year. The operator has also announced plans for its domestic subsidiary, Mandarin Airlines, which currently uses ATR‑72 turboprop planes. This unit will transition to a fleet of modern jet aircraft with a focus on boosting regional services across central and southern parts of Taiwan.