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China Airlines of Taiwan Leases Planes to Tap Growing Asian Market
Seeing growing demand for short-distance passenger flights from Taiwan to neighboring countries in Asia, China Airlines (CAL), Taiwan’s flag carrier, recently announced to ink contract with the International Lease Finance Corp. (ILFC), a subsidiary of American International Group (AIG), to lease three Boeing 737-800 passenger planes that will be delivered in the second quarter of 2013.
Boeing 737-800s are suitable for short-distance flights for narrow body for medium loading capacity, efficient fuel consumption, and easy maintenance. CAL will have 13 Boeing 737-800s once the leased planes are delivered, and will lease 10 more before 2016.
CAL’s Boeing 737-800s will fly particularly the popular cross-strait routes and to Japan, South Korea and Southeast Asia. The airline offers 121 flights weekly to Japan and only 18 flights to S. Korea, routes with potential room for more flights.
CAL is the only Taiwanese carrier to fly from Taipei to Yangon, the largest city in Myanmar, four times weekly, but five by September.
Furthermore, CAL has recently ordered A350 airplanes to be delivered beginning 2016 for long-distance passenger flights to Europe and the United States.
In June CAL posted revenues of NT$11.455 billion (US$381.83 million), with first-six-month revenues of NT$65.38 billion (US$2.18 billion), up 2.12% YoY.
