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Airlines

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Name: CHINA AIRLINES
7JetSet7 Code: CHI
Status: Operational
Region: CHINA
City: TAIPEI
Country: TAIWAN
Employees 9684
Web: china-airlines.com
Email: ping-huan_shih@email.china-airlines.com
Telephone: +886 2 2715 2233
Fax: +886 2 2514 6005
Sita: TPEMZCI
Background
(definitions)

Click below for data links:
CHI-2002-01-A
CHI-2002-01-B
CHI-2002-01-C
CHI-2002-01-D
CHI-2002-TOP-WLD-RANKINGS
CHI-2004-06-NEWS-A330-300
CHI-2004-07-A330-302
CHI-2004-12-A
CHI-2004-TRAFFIC STATS
CHI-2004-WORLD-RPK
CHI-2005-04-747-400
CHI-2005-05-VIENNA
CHI-2005-09-A-CROSS STRAITS
CHI-2005-12 - NO CARGO DEAL
CHI-2006-05-A330-200
CHI-2007-08-INCDT
CHI-2007-TOP-WLD-CARGO
CHI-2008-WORLD TOP 10 CARGO
CHI-2012-03 - LONDON STOPPED
CHI-2012-08-BUSINESS CLASS FLT-A
CHI-2012-08-BUSINESS CLASS FLT-B
CHI-2012-08-BUSINESSW CLASS FLT-C
CHI-2012-09-HQ BUILDING TAIPEI
CHI-2012-09-UPDATE-A
CHI-2012-09-UPDATE-B
CHI-2012-09-UPDATE-C
CHI-2012-09-UPDATE-D
CHI-2012-09-UPDATE-E
CHI-2012-09-UPDATE-F
CHI-2012-09-UPDATE-G
CHI-2012-09-UPDATE-H
CHI-2013-07 - TAIPEI TAOYUAN TOP AIRLINES
CHI-2013-12 - TIGERAIR TAIWAN
CHI-2014-12 - 777-300ER TO LAX
CHI-2015-06 - 777-300ER Business Class-A.jpg
CHI-2015-06 - 777-300ER Business Class-B.jpg
CHI-2015-06 - 777-300ER Economy Family Couch.jpg
CHI-CABIN ATTENDANTS - 2012
CHI-LOGO
CHI-MAINTENANCE MRO - A
CHI-MAINTENANCE MRO - CKS HANGARS
CHI-MAP
CHI-SKYTEAM ALLIANCE - 2010-10-
CHI-VISIT TAIWAN

FORMED IN 1959 AND STARTED OPERATIONS IN 1962. NATIONAL AIRLINE. DOMESTIC & INTERNATIONAL, SCHEDULED, PASSENGER & CARGO, JET AIRPLANE SERVICES.

ADDRESS:
131 NANKING EAST ROAD, 3RD SECTION
TAIPEI 10410, TAIWAN

TAIWAN (REPUBLIC OF CHINA) WAS ESTABLISHED IN 1949, IT IS AN ISLAND COVERING AN AREA OF 36,179 SQ KM, ITS POPULATION IS 21.5 MILLION, ITS CAPITAL CITY IS TAIPEI, AND ITS OFFICIAL LANGUAGE IS CHINESE.

SEE - - "CHI - MAP."

OCTOBER 1962: INTRODUCED THE FIRST DOMESTIC FLIGHT SCHEDULE.

DECEMBER 1966: INITIATED THE FIRST INTERNATIONAL SERVICES.

JANUARY 1993: 1992 (1991) = +$143.6 MILLION (+$154.8 MILLION) (NET PROFIT): +10.7% (RPK) TRAFFIC, +5.6% PASSENGERS (PAX), -0.4% (FTK) FREIGHT TRAFFIC.

FIRST LISTING ON THE TAIWAN STOCK EXCHANGE.

MANDARIN AIRLINES (MDN) IS A SUBSIDIARY.

MARCH 1993: 747 COMBI CONVERTED TO 747F AT WICHITA.

JUNE 1993: 747-409 (RT635) DELIVERY.

NOVEMBER 1993: ACCDT: (CHI) 747-409 (RT635) SKIDDED OFF RUNWAY INTO HONG KONG HARBOR, = NO FATALITIES, BUT AIRPLANE SCRAPPED & WRITTEN OFF (W/O).

JANUARY 1994: 6 MONTHS 1993 = -7.3% PASSENGERS (PAX).

APRIL 1994: ACCDT: (CHI) A300-600B4-622R CRASHED ON LANDING AT NAGOYA, JAPAN, = 15 (FC)-(CA)/249 PASSENGERS FATALITIES OF 15/256 (1ST OF 162 A300'S, IN SERVICE WITH 18 CUSTOMERS).

JUNE 1994: 747-412 (PW4056) (RT503), SINGAPORE AIRLINES (SIA) 2 YEAR DRY-LEASED.

JULY 1994: 1ST 6 MONTHS 1994 = +9.5% (RPK) TRAFFIC, -2.4% PASSENGERS (PAX), +40.9% (FTK) FREIGHT TRAFFIC.

NOVEMBER 1994: 2 ORDERS A320-200 (V2500-A1).

DECEMBER 1994: 1 ORDER (MAY 1995) A300-600B4-622R.

JANUARY 1995: 1994 = +$17.25 MILLION (+$115 MILLION): +2.1% (RPK) TRAFFIC, -5.3% PASSENGERS (PAX), +29.2% (FTK) FREIGHT TRAFFIC, 70.8% LF LOAD FACTOR.

747F TO MIAMI (MIA).

MAY 1995: 2 ORDERS A300B4-600R (PW4158).

JUNE 1995: 1 747-400 TO MANDARIN (MDN). 4 ORDERS (1999) 777-200.

JULY 1995: SELLS SOME SHARES TO FUBAN INS. OWNS 10% OF FAR EASTERN AIR TRANSPORT (FAT).

1ST 6 MONTHS = +$14.8 MILLION (+$11 MILLION).

NOVEMBER 1995: 1ST 10 MONTHS = +$75.09 MILLION. PROVIDES 7% OF DOMESTIC SEATS.

HAS A NEW LOGO OF A PLUM BLOSSOM (HAS REMOVED THE TAIWAN FLAG). THE LOGO MEANS A SYMBOL OF RENEWAL. THE CHINESE CHOP DESIGN, WITH ITS CLASSIC SEAL SCRIPT EXPRESSES CONFIDENCE & COMMITMENT TO PURSUIT OF INNOVATION & EXCELLENCE.

TO CONTINUE OPERATIONS TO HONG KONG >1997.

6/9 ORDERS 737-800 ($750 MILLION) (AUGUST 1998 - NOVEMBER 1998).

JANUARY 1996: 1995 = +$46.15 MILLION (+13%) ($35.24 MILLION): +13.8% (RPK) TRAFFIC, +10.1% PASSENGERS (PAX), +16.7% (FTK) FREIGHT TRAFFIC.

CODE SHARE WITH CONTINENTAL AIRLINES (CAL) TO LATIN AMERICA, AND SAN FRANCISCO (SFO).

MARCH 1996: 6 0RDERS (12/96) 737-400'S, 160 PAX & 1 747-200F.

APRIL 1996: TO INCREASE SAN FRANCISCO (SFO) CARGO FLIGHTS, & NEW ROUTE TO SINGAPORE & PENANG. WILL INCREASE CARGO CAPACITY BY 39K TONS/YEAR.

CODE SHARE WITH AMERICAN AIRLINES (AAL), TO USA.

7TH 747-200F, ATLAS AIR (TLS) WET-LEASED. 1 A300-600R (PW4158) (625), EX-GARUDA (GIA), (ILF) 8 YEAR LEASED.

MAY 1996: $1.4 BILLION 4/4 ORDERS 747-400.

JULY 1996: RUMOR OF BRITISH NATIONAL WESTMINISTER BANK, BUYING 16% OF CHINA AIRLINES (CHI) FOR $300 MILLION. (CHI) OWNS 33% (FRM), SO INSTALLS H H SUN AS PRESIDENT, EX-(CHI).

1ST 6 MONTHS = +$13.2 MILLION (-14.6%), 78.8% LF LOAD FACTOR.

SEPTEMBER 1996: C C FONG, DIRECTOR ENGINEERING & MAINTENANCE RETIRED, REPLACED BY GENERAL Y L LIN. C Y LIU, DEPUTY DIRECTOR ENGINEERING & MAINTENANCE, & MANAGER MAINTENANCE CONTROL CENTER. PETER HUANG, DEPUTY DIRECTOR ENGINEERING & MAINTENANCE & CHIEF ENGINEER.

CODE SHARE WITH DRAGONAIR (DRG), KAOHSIUNG TO HONG KONG.

APPROVAL FOR 42% STAKE, IN FORMOSA AIRLINES, TO INCREASE SHARE OF DOMESTIC MARKET, FROM 4.6% TO >13.2%.

EX-IM BANK, OK, FOR $332 MILLION LOAN GUARANTEE, FOR 4 777'S.

OCTOBER 1996: ACQUIRED (ISO) 9002 MAINTENANCE CERTIFICATION.

747-209F (RR521) "D" MAINTENANCE CHECK, STRUT MODIFICATION, AND PAINTING.

NOVEMBER 1996: GENERAL TIEN-PING TING, VP FLIGHT OPERATIONS ENGINEERING & MAINTENANCE, REPLACES GENERAL WU, VP ENGINEERING & MAINTENANCE (WHO TOOK OVER AS PRESIDENT OF (CHI) SUBSIDIARY, TASCO - AIRPORT SERVICE COMPANY).

3 737-400 DELIVERIES. +2 747-200 TO FREIGHTER AT WICHITA, IN LATE 1997. 2 747-200F'S (CF6-50E2), EX-THAI AIRWAYS (TII), ATLAS AIR (TLS) 5 YEAR WET-LEASED. IN MARCH 1997, WILL HAVE 5 ATLAS AIR (TLS) WET-LEASED 747-200F'S.

DECEMBER 1996: C E WU, CHIEF ENGINEER. PAUL TAI, MANAGER
RAMP MAINTENANCE; & STEVE YUAN, MANAGER (GSE)/FACILITIES.

NEW HUB AT KAOHSIUNG, FOR 737-400'S, TO REPLACE A320'S, FOR SOUTHEAST ASIA, AND DOMESTIC CITY PAIRS, & ALSO HONG KONG (HKG) & JAKARTA (JKT). TO MOSCOW, IN 1997.

3 737-43Q'S (PW274 - PW276) (CFM56-3C1) DELIVERIES. A300-600R DELIVERY.

JANUARY 1997: MAIN SHAREHOLDER, CHINA AVIATION DEVELOPMENT FOUNDATION (OWNS 82%), IS TO SELL 16%.

1996 = +$68 MILLION (NET PROFIT): 11.726 BILLION (RPK) TRAFFIC (#31 HIGHEST IN WORLD); 75.1% LF LOAD FACTOR (+3%). 6.24 MILLION PASSENGERS (PAX) INTERNATIONAL, .76 MILLION DOMESTIC.

CHIANG HUNG-YI, CHAIRMAN, IS ALSO CHAIRMAN OF SUBSIDIARY, MANDARIN AIRLINES (MDN) (PETER BIEN, CHAIRMAN, RESIGNED).

BRITISH AIRWAYS (BAB), TO BUY 16%, FOR $242 MILLION, FOR "STRATEGIC ALLIANCE" WITH CHINA AIRLINES (CHI).

(FAA) SAFETY OVERSIGHT, ONLY GIVES TAIWAN CATEGORY 2 CONDITIONAL.

CONVERTED FOLLOWING OPTIONS TO FIRM ORDERS: 4 737-800'S & 2 747-400'S. PLANS TO RETIRE 3 737-209'S, TO (PLG). SOLD 3 737-200'S (23796, 23913, 24917) TO MEACHER GROUP, BRITISH VIRGIN ISLANDS. 4TH A300-600R, (ILF) 8 YEAR LEASED.

FEBRUARY 1997: RENEWED CONTRACT THROUGH 1999 FOR 1 747-200F, ATLAS AIR (TLS) WET-LEASED FOR OPERATIONS TO MIAMI (MIA).

STEVE YUAN, MANAGER (GSE) ENGINEERING & MAINTENANCE. GENERAL H I CHANG, ALSO CHAIRMAN OF MANDARIN AIRLINES (MDN), AFTER PETER BIEN RETIRED.

1 A300B4-600R (PW4158), (ILF) LEASED.

APRIL 1997: TAIWAN RECEIVES CATEGORY 1, (FAA) OVERSIGHT SAFETY RATING, AFTER 6 MONTHS AT CONDITIONAL STATUS.

1 747SP, EX-MANDARIN AIRLINES (MDN), DELIVERY.

MAY 1997: 1 747-400 (PW4056) DELIVERY.

JUNE 1997: "D" MAINTENANCE CHECK CONTRACT FOR ATLAS AIR (TLS) 747-200F (RD755), INCLUDING STRUT MODIFICATION. PLANNING 66,000 MANHOURS, AND APPROXIMATELY 35 TO 39 DAYS DOWNTIME. CHINA AIRLINES (CHI)'S 1ST 3RD PARTY WORK!

MANAGEMENT IMPRESSED WITH 6 NEW 737-43Q'S PERFORMANCE, WHICH AVERAGED 99.74% DISPATCH RELIABILITY, & UTILIZATION 7:24 HOURS OVER LAST 6 MONTHS.

IN 1997, TO DELIVER 4 747-400'S, 1 747-400F, AND 2 A300-600R'S. IN 1998, TO DELIVER 2 747-400'S, 1 747-400F, & 8 737-800'S, FOR TOTAL 52 AIRPLANES. TO 67 BY 2003. IN DECEMBER 1997, TO REPLACE MD-11 WITH 747-400 ON SAN FRANCISCO (SFO) ROUTE, FOR +43% (ASK) CAPACITY. 7TH OF 12 ORDERED 747-409'S (RT637) (PW4056). RETURNED LEASED 747-400 (RT503) TO SINGAPORE AIRLINES (SIA). 1 ORDER (JANUARY 1999) A300-600 (PW4000) (NOW OPERATES 14 AIRBUS'S).

JULY 1997: 1ST DIRECT SERVICE TO MYANMAR (737-400).

1ST 6 MONTHS = +$61 MILLION DUE TO DOWNSIZING, AND STRONG CARGO OPERATIONS, FOR 87.7% LF LOAD FACTOR.

$170 MILLION FOR 10 ENGINES, +3 SPARE (PW4000), FOR 5 777'S.

AUGUST 1997: CODE SHARE WITH AMERICAN AIRLINES (AAL) TO USA.

SEPTEMBER 1997: TO YANGON "REGULAR" CHARTER SERVICE (737-400). NEW FREIGHTER ROUTE, TO MIAMI (MIA). CODE SHARE WITH CONTINENTAL AIRLINES (CAL), TO HOUSTON, VIA SAN FRANCISCO (SFO).

+2 747-200'S TO FREIGHTERS BY BOEING WICHITA, 1ST JULY - NOVEMBER 1998, 2ND MARCH - JUNE 1999, FOR 120 TONS OF CARGO, WITH RANGE 4,000 MILES. 5TH MD-11 (PW4460), GATX LEASED. 1 A300B4-600 TO REPLACE A300B4-220.

OCTOBER 1997: 8,167 EMPLOYEES.

2ND 747-400 DELIVERY THIS YEAR. 1 MD-11 (PW4460) (48458), GATX 4 YEAR LEASED, EX-WORLD AIRWAYS (WLD).

NOVEMBER 1997: FOLLOWING USA/TAIWAN OPEN SKIES AGREEMENT, CODE SHARE WITH AMERICAN AIRLINES (AAL) TO DALLAS/FORT WORTH (DFW), CHICAGO (ORD), MIAMI (MIA), NEW YORK (JFK), WASHINGTON DC, LOS ANGELES (LAX), & SAN FRANCISCO (SFO).

1 ORDER (FEBRUARY 1998) A300-600R (PW4158), (ILF) 8 YEAR LEASED.

DECEMBER 1997: 9TH & 10TH 747-409'S (28711; 28712). COMPLETES TOWER (TOW) 747-200 STRUT MODIFICATION ON (RD046) ON SCHEDULE.

JANUARY 1998: ORIENT AVIATION ASSOCIATION (OAA), NAMES C F FU, PRESIDENT, "PERSONALITY OF THE YEAR" IN TERMS OF IMPROVEMENTS OF EMPLOYEE MORALE, QUALITY, & SAFETY ENHANCEMENTS.

CARGO LOAD SHARE WITH GARUDA (GIA), ALLOWS 20 TONS IN (CHI)'S 747-200F ON THE JAKARTA (JKT) - TAIPEI (TPE) - LOS ANGELES (LAX) ROUTE.

1997 PRE-TAX = +$106 MILLION (+$62.5 MILLION).

OUTSOURCES, REVENUE MANAGEMENT TECHNOLOGY, TO PROS STRATEGIC SOLUTIONS, INCLUDING MANDARIN AIRLINES (MDN), TO MANAGE PRICING & SEATING INVENTORY.

USA DEPARTMENT OF TRANSPORTATION (DOT) OK'S CODE SHARE WITH AMERICAN AIRLINES (AAL), INCLUDING TO JAKARTA, KUALA LUMPUR, AND SINGAPORE.

PASSED RECENT (FAA) REPAIR STATION AUDIT.

FEBRUARY 1998: ACCDT: (CHI) A300-600R (578) CRASHED ON LANDING, TAIPEI = 14 (FC) - (CA)/182 FATALITIES +>7 ON GROUND.

1997 PRE-TAX = +$120 MILLION.

GOVERNMENT REQUIRES COMPLETE PRIVATIZATION OF CHINA AIRLINES (CHI). CHINA AVIATION DEVELOPMENT FOUNDATION OWNS 71% (STATE BODY). POSSIBLE MERGER WITH USA-BASED, GLOBAL AIRWAYS.

747SP-09 (RG174) RETURNED TO LESSOR. 11TH 747-409 (RM021) DELIVERY. REGULATORY AUTHORITY GROUNDS ALL A300-600R'S. 11TH A300-600R DELIVERY.

MARCH 1998: THE GOVERNMENT'S RECENT CONCERNS OF THE ISLAND'S POOR SAFETY RECORD SUGGEST MERGER OF FORMOSA AIRLINES (FRM) INTO CHINA AIRLINES (CHI). THE GOVERNMENT ACCEPTS RESIGNATION OF FU CHUN-FAN, PRESIDENT, ALONG WITH CIVIL AERONAUTICS ADMINISTRATIONS (CAA)'S TSAI TUI, DIRECTOR GENERAL, IN THE AFTERMATH OF SERIES OF AIR MISHAPS. GENERAL CHIANG HUNG-YI, CHAIRMAN, WILL ACT AS PRESIDENT UNTIL A REPLACEMENT IS FOUND.

6TH 747-200F (21832), EX-PHILIPPINE AIRLINES (PAL), ATLAS AIR (TLS) 5 YEAR LEASED, FREIGHTER CONVERSION BY BOEING WICHITA.

APRIL 1998: 8,728 EMPLOYEES.

(http://www.china-airlines.com).

FISCAL YEAR (FY) 1997 = +$92.23 MILLION (NET PROFIT): 73.5% LF LOAD FACTOR.

MAY 1998: K L LEE, MANAGER QUALITY ASSURANCE; REPLACES PETER LEE, NOW MAINTENANCE MANAGER. STEVE YUAN, MANAGER SHOP MAINTENANCE.

JUNE 1998: TO HANOI. INCREASES FREQUENCIES TO HSINCHU, AND KOAHSIUNG.

JULY 1998: TO KAOHSIUNG, AND KAOHSIUNG - SOUTHEAST ASIA REGION.

EXPECTS FISCAL YEAR (FY) 1997 = -$24 MILLION, IN AFTERMATH OF FEBRUARY 1998 A300 CRASH.

$625 MILLION, 15 ORDERS 737-800 (SEPTEMBER 1998). LAST A300-600R DELIVERY.

1997 TOP WORLD AIRLINE COMPARISONS:
(FTK) FREIGHT TRAFFIC (BILLION): 1 FED 9.3; 2 GRC 6.5; 3 KAL 5.7; 4 UPS 5.4; 5 AFA 5.0; 6 SIA 4.8; 7 JAL 4.2; 8 BAB 3.9; 9 KLM 3.9; 10 CAT 3.6; 11 NWA 3.3; 12 UAL 3.2; 13 CHI 2.8; 14 EVA 2.7; 15 DAL 2.5; 16 CLX 2.4; 17 AAL 2.4; 18 PAO 1.9.

AUGUST 1998: MEMO OF UNDERSTANDING (MOU) FOR STRATEGIC ALLIANCE WITH SINGAPORE AIRLINES (SIA), WITH (SIA) TAKING 5 TO 10% STAKE IN CHINA AIRLINES (CHI), WITHIN 6 MONTHS, FOR $185 TO $370 MILLION, WITH POSSIBLE RAISE TO 30%, OVER TIME, CODE SHARE, FLEET & CARGO PLANNING, & EXCHANGE OF STAFF.

SEPTEMBER 1998: SANDY LIU, VP COMMERCIAL (BUSINESS, ENGINEERING MAINTENANCE & SERVICES) REPLACES GENERAL TONY TING, WHO RETIRED.

MAINTENANCE CONTRACT FOR FEDEX (FED), MD-11F "B" MAINTENANCE CHECKS, FOR 4 YEARS.

1ST 6 MONTHS AFTER-TAX = -$45 MILLION (1ST -VE IN 12 YEARS!).

BECOMES 1ST ASIAN OPERATOR, OF 737-800, WITH 1ST DELIVERY, OF $750 MILLION, 15 ORDERS, 8C, 150Y, PAX. 12TH 747-400 (PW4056) DELIVERY. 1 A300-600R (559), EX-AIR LIBERTE (ALB), AIRBUS (EDS) (AIFS) LEASED.

OCTOBER 1998: OPERATES TO KAOHSIUNG, OKINAWA, AND OTHER POINTS IN SOUTHEAST ASIA.

OPENS NEW 3-BAY MAINTENANCE HANGAR, CAPABLE OF 3 747-400'S +1 MD-11 OR A300, BUILT OVER LAST 5 YEARS BY BURNS & MCDONNELL, AS "MOST ADVANCED IN ENTIRE ASIA-PACIFIC REGION."

1ST 6 MONTHS = 9.78 BILLION (RPK) TRAFFIC (-.2%), 1.29 BILLION (FTK) FREIGHT TRAFFIC (+5.1%), 3.39 MILLION PASSENGERS (PAX) (-9.1%).

MAINTENANCE SUPPORT FOR CHINESE AIR FORCE (CAF), 737-800, TO BE DELIVERED IN DECEMBER 1999. 17 MONTH LEASE TO (CAF) OF 737-400.

737-800, 8C, 150Y, DELIVERY, INCLUDING SONY LCD, VIDEO & CD PLAYERS. 1ST 3 737-800'S DELIVERIES, OF 15 ORDERS.

NOVEMBER 1998: SANDY LIU, ACTING PRESIDENT, EX-VP COMMERCIAL.

INTRODUCES E-TICKETING, 1ST IN TAIWAN, AND 3RD IN ASIA.

SUBSIDIARIES, MANDARIN (MDN) & FORMOSA AIRLINES (FRM), MAY MERGE.

AMERICAN INTERNATIONAL GROUP (AIG), WHO OWN 20% OF FAR EASTERN AIR TRANSPORT (FAT), IS CONSIDERING BUYING 8% OF CHINA AIRLINES (CHI), WITH CHINA DEVELOPMENT CORPORATION (CDC), FOR $100 MILLION.

2 737-43Q'S (28489; 28493) RETURNED TO GECAS. 3 737-809'S (29103; 28404; 28405) DELIVERIES. 747-409 (29031) DELIVERY. 6 ORDERS 777-200 & 7 ORDERS 777-200ER'S, BUT AIRPLANES MAY COME FROM ALLIANCE PARTNER SINGAPORE AIRLINES (SIA), OR ASSOCIATED LEASING COMPANY, S A L E (SIL). MD-11 (48471), EX-MANDARIN AIRLINES (MDN).

DECEMBER 1998: 2 737-43Q'S RETURNED TO BOULLIOUN (BOU). 8TH 737-809 DELIVERY. WILL REPLACE ALL 737-400 AIRPLANES. PLANS TO REDUCE NUMBER OF TYPES OF AIRPLANES, FROM 7 TO 4 BY 2003. EXISTING 747-200, 747-SP, MD-11, AND A300B4-200 WILL BE RETIRED. IN 1999, WILL RECEIVE 2 737-800'S, 1 747-400, & RETIRE 2 A300B4-200'S.

JANUARY 1999: AMERICAN INTERNATIONAL GROUP (AIG), OWNER OF (ILFC) (ILF), MAY TAKE 8% STAKE IN CHINA AIRLINES (CHI).

FEBRUARY 1999: TAIPEI'S CHIANG KAI-SHEK AIRPORT (CKS), NOW 12 MILLION PASSENGERS/YEAR, WILL HAVE 2ND TERMINAL OPENED IN JUNE 1999, TO HANDLE 14 MILLION PASSENGERS, A 208,000 SQ M FACILITY, FOR $683 MILLION.

IN 1999, TO RECEIVE 2 737-800'S, 1 747-400, & ORDER +8 747-400F'S (2000), AND PHASE OUT 2 747SP'S, & 2 A300B4'S AND CONVERT 2 747-200'S TO SF. DECISIONS ON PHASING OUT 4 A300B4'S & 5 MD-11'S, REPLACED BY 777-200'S OR A330/A340, WHICH ARE DEFERRED DUE TO POOR ECONOMIC SITUATION. 1ST WICHITA SPECIAL FREIGHTER (SF) 747-200SF RECEIVED.

MARCH 1999: CHINA AIRLINES (CHI) BOARD OF DIRECTORS APPROVES PLAN FOR MERGER OF SUBSIDIARIES, MANDARIN AIRLINES (MDN) & FORMOSA (FRM), WHEREBY (CHI) WILL HAND OVER ALL DOMESTIC SERVICE TO (MDN), AND TAKE OVER (MDN) INTERNATIONAL ROUTES TO CANADA & AUSTRALIA. (MDN) WILL ALSO OPERATE SOME REGIONAL ROUTES, & TO MAINLAND CHINA. (CHI) STAKE IN (MDN), NOW 100%, WILL BE REDUCED TO <70%. (CHI)'S 40% IN (FRM), WILL STAY THE SAME.

C J HUANG, CHIEF ENGINEER, REPLACES C E WU, WHO RETIRED. C C TING, MANAGER COMPONENT SHOPS; C C LOU, MANAGER (GSE)/FACILITIES. T C TING, MANAGER ENGINEERING MAINTENANCE ADMINISTRATION. Y S HUANG, MANAGER BASE MAINTENANCE.

APRIL 1999: SANDY K Y LIU, PRESIDENT.

9,176 EMPLOYEES. SITA: TPEPRCI.

(cheng_yang@china-airlines.com).

1ST QUARTER = 71.3% LF LOAD FACTOR (PAX), 83.5% LF (CARGO). EXPECTS TO MEET 1999 PRE-TAX $51.65 MILLION. 1ST QUARTER PRE-TAX = +$24 MILLION. 1998 = 12.64 BILLION (RPM) TRAFFIC (+2.6%), 3.22 BILLION (FTM) FREIGHT TRAFFIC (+.6%).

IN 1999, WILL RETIRE 2 747SP, 6 A300B4-200 AND TAKE DELIVERY OF 2 737-800'S & 1 747-400. PLANS TO CONVERT, 5 OPTION 737-800'S, TO FIRM ORDERS.

2 A300B4-200'S (171; 179) PARTED OUT.

MAY 1999: 1998 = -$66 MILLION (1ST LOSS IN 12 YEARS) (+$73 MILLION).

CHARLES YEH, MANAGER ENGINEERING, MAINTENANCE & SUPPLY DIVISION, REPLACES N C CHANG, WHO RETIRED. T H LAU, CHIEF LINE MAINTENANCE. F C LIU, MANAGER QUALITY INSPECTION.

BOARD OF DIRECTORS APPROVES PLANS FOR 10/3 747-400F'S, TO REPLACE AGING 747-200F'S DURING 2000 - 2003. 8/3 777-200/-300'S VS A330/A340'S STILL UNDECIDED.

JUNE 1999: SANDY LIU, PRESIDENT (CONFIRMED).

GOVERNMENT SIGNS CONTRACT WITH SALOMON SMITH BARNEY, TO ADVISE ON FINANCIAL SALE, OF AT LEAST HALF, OF ITS 71% STAKE IN CHINA AIRLINES (CHI). THE STAKE IS POTENTIALLY WORTH $540 MILLION.

$140 MILLION FOR NEW, 3-BAY, MAINTENANCE HANGAR, WHICH, WITH EXISTING 2-BAY, HANGAR, CAN CATER FOR 5 747-400'S, WITH 1 MD-11 OR A300-600.

HAS MAINTENANCE CONTRACT FOR FEDEX (FED) MD-11'S.

1998 TOP WORLD AIRLINES TRAFFIC (RPM) (BILLION):
23 MAS 18.25; 24 SWS 17.43; 25 CDI 16.70; 26 AMW 16.36; 27 VAR 16.25; 28 SAS 12.98; 29 CHI 12.64; 30 VAA 12.27; 31 SVA 11.69; 32 ASA 11.27; 33 ANZ 11.15; 34 ANS 10.14.

RECENTLY SOLD 2 747SP AND 6 A300B4'S.

JULY 1999: ALL-CARGO SERVICE TO SYDNEY. IN 1995 - 1997, VOLUME OF AIR CARGO TO AUSTRALIA GREW 18% - 25%, & FROM AUSTRALIA 15% - 45%.

2 737-809'S FOR TOTAL 10, AND 1 747-409 DELIVERIES. CONTRACT FOR 2 747-400, ATLAS AIR (TLS) WET-LEASED, THIS YEAR.

AUGUST 1999: GOVERNMENT APPROVAL WAITING, FOR +5 ORDERS 737-800'S TO 8 IN SERVICE, & 7 ON ORDER. ALSO, 13/4 ORDERS 747-400F'S. 1ST 747-400F DELIVERY, CAPABLE OF CARRYING 115 - 120 METRIC TONS OF CARGO, >20 METRIC TONS MORE THAN 747-200F. 747-47UF (122-29259, N498MC), ATLAS AIR (TLS) WET-LEASED IN CHINA AIRLINES (CHI) COLOR SCHEME. 7/1 ORDERS A340-300'S, WITH FOLLOW-UP 4 OPTIONS A330-300 TO REPLACE 11 747-200F'S, 5 MD-11'S, 1 A300B4, & 12 A300-600'S. (CHI)'S DECISION, TO OPT FOR THE A340, IS CONSIDERED POLITICALLY BOLD, GIVEN THE BAD PRESS, WHICH AIRBUS RECEIVED, IN THE WAKE OF 2 A300-600R CRASHES, AT TAIPEI IN 1998 & NAGOYA IN 1994.

1998 DOMESTIC PASSENGERS (PAX) MILLION:
1 FAT 5.08; 2 MAK 4.13; 3 FSH 3.85; 4 FRM 1.47; 5 CHI 848K; 6 CHN 812K; 7 EVA 409K.

ACCDT: (CHI)/(MDN) MD-11 (48468, /92 31 06) LANDING AT HONG KONG IN BAD WEATHER CONDITIONS, CRASHED, AND FLIPPED OVER, CATCHING FIRE = 3 FATALITIES OF 315.

CHIANG HUNG-YI, CHAIRMAN, RESIGNS.

OCTOBER 1999: IN SUMMER 2000, WILL TAKE BACK VANCOUVER (747-400 SYDNEY (MD-11) & BRISBANE (MD-11) FROM SUBSIDIARY, MANDARIN AIRLINES (MDN).

PROJECTS +$56M FOR FY 1999.

NOVEMBER 1999: REDUCES ITS STAKE IN MANDARIN AIRLINES (MDN) FROM 90% TO 70%, AND POSSIBILITY OF AS LOW AS 50% LATER.

SOLD 2 737-800'S (18405; 18406) TO DEAN-HO LEASING AND LEASED BACK FOR 7 YEARS.

DECEMBER 1999: COMPLETES TOWER AIR (TOW) 747-200F STRUT MODIFICATION ON (RD062, N618FF) ON SCHEDULE.

1ST 10 MONTHS = 18.87B RPK (+12.4%), 2.71B FTK (+16.9%), 6.80M PAX (+13.5%).

SELLS 2 REMAINING 747SP'S TO GULF FALCON GROUP (GFG).

JANUARY 2000: "D" CHECK, STRUT MODIFICATION, & CORROSION PREVENTION & CONTROL PROGRAM (CPCP), COMPLETED ON 747-409 (B-161).

FEBRUARY 2000: CHINA AIRLINES (CHI), (EVA) AIR'S EGAT, AIR ASIA (ASW), & AIDC (TAIWAN'S AEROSPACE TECHNOLOGY DEVELOPMENT CORPORATION), AGREE TO FORM A COMPANY TO FOCUS ON 747/757, PASSENGER-TO-CARGO CONVERSIONS.

2ND TERMINAL, AT TAIPEI INTERNATIONAL AIRPORT, COMPLETED. CAN CATER FOR 20% INCREASE IN PASSENGERS (PAX), FROM 1999'S 17M PAX.

1999 PRE-TAX = +$93M. 9,087 EMPLOYEES.

MARCH 2000: COMPLETES ITS TECHNICAL CONSULTING ASSIGNMENT (3 YEARS), WITH LUFTHANSA TECHNIK (LTK) (DLH), AND 25 (LTK) ENGINEERS RETURN TO GERMANY.

OPENS SALES, LIAISON OFFICES, IN SHANGHAI AND GUANGZHOU.

TO VANCOUVER. TO SYDNEY - AUCKLAND (3/WEEK).

APRIL 2000: 8,999 EMPLOYEES (INCLUDING 740 FC, 2,168 CA, & 2,097 MT).

(ping-huan_shih@email.china-airlines.com).

1999 FISCAL YEAR (FY) AFTER-TAX = +$89.9 MILLION: 70.5% LF (+2.4); CARGO 83.9% LF (+.6). TAIWAN MARKET SHARE 31% PAX & 26.2% CARGO.

MAY 2000: NEW FREIGHTER SERVICE, TAIPEI - BANGKOK - ABU DHABI - FRANKFURT (747-200F, 1/WEEK).

STARTS 737-800 EXTENDED TWIN-ENGINE OPERATIONS (ETOPS), TO GUAM & SAIPAN (3/WEEK).

GENERAL Y L LIN, VP ENGINEERING & MAINTENANCE. C Y LIU, ASSISTANT VP MAINTENANCE.

JUNE 2000: TAIPEI'S $580M, TERMINAL 2 AT TAIPEI (TPE), CKS INTERNATIONAL AIRPORT, OPENS TO DOUBLE PASSENGER CAPACITY.

JULY 2000: CAPTAIN YUN-LIN LEE, CHAIRMAN, EX-FAR EASTERN AIR TRANSPORT (FAT), REPLACES HUNG-I CHIANG. CHRISTINE TSAI-YI TSUNG, PRESIDENT, EX-CONSULTANT ON SUBWAY DEVELOPMENT, REPLACES SANDY LIU, WHO WILL BECOME CHAIRMAN OF TAIWAN, AIR CARGO TERMINAL, SUBSIDIARY.

CHINA AIRLINES (CHI) REPLACES MANDARIN (MDN) SERVICE TO AUCKLAND & SYDNEY (MD-11, 3/WEEK).

DISCUSSIONS WITH CHINA EASTERN (CEA), TO TAKE 25% STAKE, FOR $48M, IN CHINA CARGO AIRLINES, OWNED BY (CEA), AND CHINA OCEAN SHIPPING.

1999 = +$87.28 MILLION (-$69.50 MILLION): 22.22 BILLION (RPK) (+8.6% 3.38 BILLION (FTK) (+20.9%); 7.88 MILLION PASSENGERS (PAX) (+7.7%); 9,089 EMPLOYEES.

1999 TOP WORLD AIRLINES:
FTK (FREIGHT TRAFFIC) (B): 1 FED 10.31; 2 LUB 7.07; 3 UPS 6.02; 4 KAL 5.96; 5 SIA 5,48; 6 AFA 4.73; 7 BAB 4.54; 8 JAL 4.42; 9 KLM 4.15; 10 CAT 3.77; 11 UAL 3.58; 12 CHI 3.38; 13 CLX 3.25; 14 EVA 3.15; 15 NWA 3.02; 16 AAL 2.51; 17 NCA 2.22.

2 747-409F DELIVERIES.

AUGUST 2000: 737-8Q8 (28402) WET-LEASED TO MANDARIN AIRLINES (MDN). SELLS 3 737-800'S TO CAPRICORN, HERCULES, AND SCORPIO AVIATION, AND LEASES THEM BACK. 3RD 747-409F (CF6-80C2B1F) (B-18703) (1254-30761) DELIVERY.

SEPTEMBER 2000: 1ST 6 MONTHS = +$34.5 MILLION.

CHARTER FLIGHTS TO NEW DELHI (737-800, 1/WEEK, 95% LF).

OCTOBER 2000: TAIPEI - PENANG - MEDAN (737-800, 5/WEEK).

INTERLINE AGREEMENT WITH BLUE DART EXPRESS (BDA), INDIA'S LEADING AIRFREIGHT COMPANY, FOR DOMESTIC (INDIAN) DISTRIBUTION OF CHINA AIRLINES (CHI) INDIAN IMPORT LOADS, INCLUDING TAIWAN-MADE COMPUTER PARTS AND PERIPHERALS, AS WELL AS OTHER MACHINERY PARTS, BY OVERNIGHT DELIVERY.

1 737-809 (30173, B-18612) DELIVERY. 747-409 (27965, B-16801), RETURNED FROM MANDARIN AIRLINES (MDN).

DECEMBER 2000: TOP WORLD AIRLINES 1ST 9 MONTHS TRAFFIC (RPK) (B):
18 AMW 23.12; 19 VAA 22.08; 20 VAR 19.79; 21 CHI 19.04; 22 ANA 17.66; 23 SAS 17.41; 24 GUN 16.36; 25 SVA 15.16.

FEBRUARY 2001: 1 747-409F (CF6-80C2B1F) (1263-30762, B-18705) DELIVERY. 3 MD-11'S (48458; 48470; 48471) SOLD TO FEDEX (FED).

MARCH 2001: (DOT) OK'S CODE SHARE OF VIETNAM AIRLINES (VIE) WITH CHINA AIRLINES (CHI) FOR HANOI & HO CHI MINH CITY TO LOS ANGELES (LAX) & SAN FRANCISCO (SFO), VIA TAIPEI.

1 747-409F (30763, B-18706) DELIVERY.

APRIL 2001: IN OCTOBER 2001, CODE SHARE WITH TRANSAERO (TRX) TO MOSCOW (A320, WEEKLY).

8,999 EMPLOYEES (INCLUDING 740 FLIGHT CREW (FC), 2,168 CABIN ATTENDANTS (CA), & 2,097 MAINTENANCE TECHNICIANS (MT)).

1 737-809 (29103, B-18603) SOLD TO (GEF) AND LEASED BACK. 1 747-409F (30764, B-18707) DELIVERY. 1ST A340-313, 8F, 30C, 220Y PAX, DELIVERY.

MAY 2001: NEXT MONTH, FREIGHTER SERVICE TO SEATTLE (SEA) AND ON TO SAN FRANCISCO (SFO) (747-400F), MAKING (SEA), THE 9TH ALL-CARGO TRANSPACIFIC DESTINATION AFTER (SFO), LOS ANGELES (LAX), CHICAGO (ORD), NEW YORK (JFK), MIAMI (MIA), DALLAS/FORT WORTH (DFW), ATLANTA, & ANCHORAGE.

55 FREIGHTER/WEEK FLIGHTS: 26 TRANSPACIFIC, 11 TRANSEUROPE, & 18 REGIONAL ASIA.

MAIN BASE: TAIPEI (CHIANG KAI SHEK INTERNATIONAL) AIRPORT.

JUNE 2001: 2 A340-313X (406, B-18802; 411, B-18803) DELIVERIES.

JULY 2001: GOVERNMENT OK'S $3.4 MILLION FOR NEW AIR CARGO TERMINAL IN XIAMEN, FUJIAN PROVINCE, JUST CLOSE TO TAIWAN.

3RD & 4TH A340-313X (415, B-18804) DELIVERIES.

AUGUST 2001: (CAAC) FINALLY APPROVES CHINA AIRLINES (CHI)'S 24% STAKE IN CHINA EASTERN'S (CEA), CARGO CARRIER, FOR $60 MILLION. ALL-CARGO SERVICE TO ANCHORAGE - NASHVILLE, TENNESSEE (747-400F).

SEPTEMBER 2001: 1ST CARRIER IN ASIA, TO OFFER WIRELESS BROADBAND ACCESS TO THE INTERNET, IN ITS LOUNGE AT CHIANG KAI 0SHEK AIRPORT, TAIPEI. 1ST (FC) AND BUSINESS-CLASS (C) PAX, WILL ENJOY THIS FACILITY, BY CONNECTING THEIR NOTEBOOK COMPUTERS. CALLED THE INTERNET, MOBILE OFFICE (IMO), IT WILL ALSO BE INTRODUCED IN KAOHSIUNG, AND HONG KONG, BY THE END OF 2001.

TO FRANKFURT, VIA STOP IN ABU DHABI.

OCTOBER 2001: 1 A340-313X (433, B-18805) DELIVERY.

TOP WORLD AIRLINES 1ST 9 MONTHS TRAFFIC (RPK) (BILLION):
18 KAL 27.24; 19 AMW 24.20; 20 VAR 19.81; 21 CHI 19.70; 22 SAS 18.17; 23 EAD 17.6.

NOVEMBER 2001: PROJECTS +$42.8 MILLION FOR 2001, DESPITE GLOBAL AIRLINE INDUSTRY SLUMP. AFTER 9/11, HAD CUT FRQUENCIES BY -18%, BUT TRAFFIC IS SLOWLY COMING BACK.

1 747-409F (30765) DELIVERY.

DECEMBER 2001: CODE SHARE WITH DELTA AIRLINES (DAL) TO LOS ANGELES (LAX) & SAN FRANCISCO (SFO).

CHRISTINE TSUNG, PRESIDENT, LEAVES TO BECOME TAIWAN'S NEW ECONOMICS MINISTER.

JANUARY 2002: 2001 PRE-TAX = +$54.33 MILLION: 25.06 BILLION (RPK) TRAFFIC (-1.1%); 4.03 BILLION (FTK) FREIGHT (-2.5%); 7.97 MILLION PASSENGERS (PAX) (+.9%).

INCDT: A CHINA AIRLINES (CHI) A340-300 WITH 252 ON BOARD, TOOK OFF AT ANCHORAGE ON THE TAXIWAY, INSTEAD OF ASSIGNED RUNWAY, AND BARELY GOT OFF THE GROUND. THE RUNWAY WAS 11,000 FT, WHEREAS THE TAXIWAY WAS ONLY 6,800 FT. THE AIRPLANE'S LANDING GEAR CUT DIVOTS IN A SNOW BERM AT THE END OF THE TAXIWAY. THE CAPTAIN'S LICENCE WAS SUSPENDED FOR 8 MONTHS. THE CO-PILOT (FC) AND A CAPTAIN (FC) OCCUPYING THE JUMP SEAT, HAD THEIR LICENCES SUSPENDED FOR 7 MONTHS. CHINA AIRLINES (CHI) HAS NOT ALLOWED THE PILOTS (FC) BACK TO WORK, AND WILL NOT MAKE A DECISION ON THEIR FUTURE, UNTIL RECEIVING THE RESULTS OF THE (NTSB) INVESTIGATION.

2001 TOP 50 WORLD AIRLINES - TRAFFIC BILLION (RPM):
1 UAL 116.60; 2 AAL 106.15; 3 DAL 97.60; 4 NWA 73.11; 5 BAB 64.24; 6 AFA 59.54; 7 CAL 58.76; 8 DLH 56.76; 9 JAL 50.77; 10 USA 45.93; 11 SWA 44.50; 12 SIA 42.76; 13 QAN 42.14; 14 ACN 41.49; 15 KLM 35.76; 16 ANA 33.16; 17 CAT 27.81; 18 TII 27.43; 19 IBE 25.64; 20 KAL 23.73; 21 ALI 22.45; 22 MAS 22.29; 23 AMW 19.06; 24 VAA 17.65; 25 VAR 16.02; 26 CHI 16.00; 27 EAD 14.37; 28 SAS 14.26; 29 ANZ 13.54; 30 SAA 12.70; 31 SVA 12.56; 32 BEJ 12.39; 33 ASA 12.23; 34 JAS 10.06; 35 THY 9.35; 36 AMX 8.51; 37 PAL 8.36; 38 GIA 8.15; 39 CMA 7.99; 40 ELA 7.79; 41 GUL 7.65; 42 PIA 7.24; 43 AIN 7.10; 44 TAP 6.43; 45 EGP 5.53; 46 OLY 5.24; 47 AUL 5.06; 48 FIN 4.93; 49 IND 4.52; 50 CQT 4.51.

FEBRUARY 2002: SCHEDULED SERVICE TO DELHI, INDIA (3/WEEK NONSTOP).

MARCH 2002: 1 747-400F DELIVERY (BOEING'S 1,300TH 747).

APRIL 2002: 1ST QUARTER PRE-TAX = +NT 700 MILLION (-2.8%).

TOP WORLD 2001 AIRLINES TRAFFIC - BILLION (RPK):
16 CAT 44.79; 17 IBE 41.30; 18 KAL 37.95; 19 ALI 36.52; 20 AMW 30.69; 21 VAR 26.01; 22 CHI 25.06; 23 SAS 23.30; 24 EAD 23.13; 25 GUN 22.77.

9,832 EMPLOYEES (INCLUDING 822 FLIGHT CREW (FC); 2,305 CABIN ATTENDANTS (CA); & 2,110 MAIBNTENANCE TECHNICIANS (MT)).

OWNERS/SHAREHOLDERS: CHINA AVIATION DEVELOPMENT FOUNDATION (71.85%).

SUBSIDIARIES: MANDARIN AIRLINES (MDN) (90.05%); FAR EASTERN AIR TRANSPORT (FAT) (9.29%).

MAIN BASE: TAIPEI (CHIANG KAI SHEK INTERNATIONAL) (TPE).

MAY 2002: (DOT) OK'S CODE SHARE WITH DELTA AIRLINES (DAL) TO LOS ANGELES (LAX), SAN FRANCISCO (SFO) AND NEW YORK.

ACCDT: CHINA AIRLINES (CHI) 747-209B (JT9D-7A) (386-21843, /79 65 21 B-18255) BROKE UP INTO 4 PIECES AT 30,000 FT AFTER TAKEOFF FROM TAIPEI OVER WATER = ALL 19 (FC) - (CA)/206 PASSENGERS FATALITIES. THE AIRPLANE WAS ON ITS LAST FLIGHT, BEFORE SALE TO ORIENT THAI (OTH) IN JUNE 2002. LATER INVESTIGATION BY TAIWANS'S AVIATION SAFETY COUNCIL, REPORTED A FATIGUE CRACK UP TO 15.1 INCHES LONG, FOUND ON THE AFT LOWER LOBE SECTION OF THE FUSELAGE, WHICH MAY HAVE CAUSED THE DISINTEGRATION. THE CRACK HAD ITS ORIGINS IN AN IMPROPER REPAIR FOLLOWING A 1980 TAIL STRIKE INCIDENT IN HONG KONG. SUBSEQUENT MAINTENANCE INSPECTIONS DID NOT DETECT THE INEFFECTIVE STRUCTURAL REPAIR AND THE FATIGUE CRACKS THAT WERE DEVELOPING UNDER THE REPAIR DOUBLER.

July 2002: 2 737-800 deliveries. Retires last MD-11.

2001 Top World Cargo Operators (Billion) (FTK) Freight Traffic:
1 FED 11.05; 2 LUB 7.08; 3 UPS 5.96; 4 SIA 5.88; 5 KAL 5.57; 6 AFA 5.12; 7 KLM 4.64; 8 JAL 4.19; 9 BAB 4.033; 10 CHI 4.030; 11 NCA 3.93; 12 CAT 3.89; 13 CLX 3.77; 14 EVA 3.28; 15 UAL 2.80; 16 NWA 2.79; 17 AAL 2.56; 18 MTH 2.40; 19 AAR 2.38; 20 DAL 2.31; 21 MAS 1.84; 22 SWS 1.79; 23 TII 1.67; 24 QAN 1.57; 25 AHK 1.55.

China Airlines (CHI) 2001: +$51.77 Million (+$89.21 Million): 25.75 Billion (RPK) (-.9%); 74.2% LF; 7.97 Million passengers (PAX) (+.9%); 4.03B (FTK) freight (-2.5%); 9,497 employees (+4.8%).

August 2002: Charter service to Moscow. To upgrade to scheduled service by the end of 2002.

2 737-809's deliveries. Airbus is expected to win an order for 12/4 A330-300's from (CHI) with delivery in December 2002.

September 2002: 747-409F (30768, B-18711) delivery.

October 2002: $2 Billion, 6 orders 747-400's (including trade-in of 2 747-200's), 4 orders 747-400F's and 12/6 orders (December 2004) A330-300's (including cancellation of order for A340-300's).

1st 6 months Top World Airlines Traffic Billion (RPK):
1 AAL 95.18; 2 UAL 84.56; 3 DAL 74.53; 4 NWA 56.50; 5 BAB 49.30; 6 AFA 48.21; 7 CAL 47.49; 8 DLH 42.06; 9 JAL 39.44; 10 SWA 36.03; 11 SIA 36.00; 12 ACN 33.69; 13 USA 33.06; 14 KLM 27.54; 15 CAT 23.07; 16 IBE 19.53; 17 KAL 16.47; 18 CHI 15.70; 19 AMW 15.20; 20 ALI 14.21; 21 EAD 13.45; 22 VAR 12.68; 23 GUN 12.49; 24 SAS 12.01; 25 BEJ 10.32.

2 747-209B's (22446; 22447), sold to Kalitta Air (KAC). MD-11 (48469) withdrawn from use (WFU) at Mojave.

January 2003: Receives China's OK for Taipei to Shanghai, via Hong Kong, for the Chinese lunar new year holiday starting next month.

February 2003: China Airlines (CHI) Cargo Taipei - Ho Chi Minh City (2/week).

Taiwan government said it plans to sell 20 - 30% stake in (CHI) for $208 - $312 Million at the end of June 2003.

March 2003: Taipei - Seoul (Incheon) (737-800, scheduled charter service, 4/week).

2002 = 26.22 Billion (RPK) traffic (+4.5%); 7.85 Million passengers ( PAX) (-1.5%); 4.59 Billion (FTK) freight (+13.9%).

Selects Singapore Airlines Engineering Co (SIAEC) to restructure its engineering maintenance division. (SIAEC) will assist with its daily operations as well as work with China Airlines (CHI) on its overall systems, policies, and processes. 8 (SIAEC) senior executives are to be sent to Taipei to oversee the contract.

9,445 employees. SITA: TPEPRCI.

2 A330-223's, TAM Brazil (TPR) wet-leased 3 years for flights to Australia, Hong Kong, and Italy.

May 2003: 1st Quarter = +NT$456.9 Million/+$13.2 Million (-50%) (+ NT$870.5 Million).

2002 TOP 25 WORLD FREIGHT CARRIERS - Billion - (FTK)
1 (FED) 13.20; 2 (LUB) 7.16; 3 (UPS) 6.62; 4 (KAL) 6.25; 5 (SIA) 6.08; 6 (AFA) 4.87; 7 (CAT) 4.85; 8 (CHI) 4.60; 9 (JAL) 4.39; 10 (CLX) 4.16; 11 (BAB) 4.12; 12 (KLM) 3.99; 13 (EVA) 3.28; 14 (NWA) 3.24; 15 (AAL) 2.93; 16 (UAL) 2.79; 17 (AAR) 2.75; 18 (NCA) 2.21; 19 (POA) 1.97; 20 (EAD) 1.96; 21 (MAS) 1.92; 22 (BEJ) 1.88; 23 (TII) 1.824; 24 (DAL) 1.823; 25 (ACN) 1.58.

July 2003: Taipei - Hanoi (737-800, 3/week).

Agreement with HMY Airways (HMY) to provide connections at Vancouver to Toronto, Las Vegas, and Los Angeles, plus Mexican resort areas.

747-409F (33729, B-18712), delivery. A340-313X (541, B-18807), delivery.

August 2003: For >$600 Million, selects (GE) (CF6-80)'s for 10 orders 747-400's (including 4 747-400F's ordered in 2002) and 12 orders A330-300's.

Next month, Taipei - Brisbane (2/week).

1st 6 months = -TWD 905 Million (+TWD 1.34 Billion).

747-409F (33731, B-18715) delivery.

September 2003: 2002 = +$90.18 Million (+$52.78 Million): 26.81 Billion (RPK) traffic (+4.1%); +2.8% (ASK) capacity ; 75.1% LF load factor (+.9); 8.14 Million passengers (PAX) (-2.2%); 4.60 Billion (FTK) (+13.9%); 9,263 employees (-1.9%).

Taipei (CKS) to Shanghai (Pudong) using a connection at Okinawa with China Eastern (CEA).

2002 TOP WORLD AIRLINES TRAFFIC (RPK) (Billion):
20 (IBE) 40.47; 21 (MAS) 37.65; 22 (AMW) 32.00; 23 (EAD) 31.66; 24 (ALI) 30.03; 25 (GUN) 28.94; 26 (VAA) 27.00; 27 (CHI) 26.81; 28 (VAR) 26.12; 29 (BEJ) 24.00; 30 (SAS) 23.21.

747-209F (22299), sold to Kalitta Air (KAC). A340-300 (528), ex-Singapore Airlines (SIA), Boeing (TBC) leased.

October 2003: China Airlines (CHI) and (EVA) Air subsidiary, InterContinental Aerocraft Services agreed with Flight Structure Inc (FSI)/BE Aerospace to launch a program to convert 737-300/-400's to freighters.

Code share with Alitalia (ALI), Taipei - Bangkok - Rome (FCO).

737-8Q8 (30636, B-16805), Mandarin Airlines (MDN) wet-leased. A340-313X (528, B-18851), Boeing (TBC) leased.

November 2003: Code share with Thai International (TII), Kaohsiung - Bangkok (10/week: 7 by China Airlines (CHI) & 3 by (TII).

December 2003: 4 747-400's (24309; 24310; 24311; 24312) and 1 MD-11 (48469) bought off-lease from Taiwan (CAA) for $179M. Plans to convert 747-400's to freighters after 2005, and sell the MD-11.

January 2004: 2003 = +NT$1.78 Billion/+$53.7 Million. Forecasts 2004 = +NT3.1 Billion.

Letter of Intent (LOI) for installation of Connexion by Boeing's onboard Internet service on its long-haul fleet (747-400's & A340-300's), for Taipei - Europe and North America, beginning in late 2004.

Resumes cargo operations, Taipei - Delhi - Manchester.

Exercised 2 options for A330-300's (now total 14) for delivery in February 2005.

In 2004, will introduce 2 747-400's, 2 747-400F's, and 3 A330-300's.

February 2004: China Cargo Airlines: Shanghai - (Anchorage) - Dallas/Fort Worth (MD-11, 3/week).

April 2004: Next month, code share with Delta Airlines (DAL), Los Angeles, San Francisco, Honolulu,, New York , Seattle, to Taipei. Taipei - Seattle - Houston (A340-300, two class, 3/week).

$425 Million, 2 orders (February 2006) 747-400F's to replace 2 747-400F's Atlas Air (TLS) wet-leased.

May 2004: 1st phase of privatization before end of 2004 when China Aviation Development Foundation (CADF) sells 36% stake to large institutional investors. Later (CADF) will sell remaining 34.05% stake to institutional investors, the general public and company employees in 2005-06.

747-409F (30769, B-18717), delivery.

June 2004: Houston - Taipei, via Seattle (3/week). Code share with Delta Airlines (DAL), Taipei - Seattle. (CHI) Cargo Taipei - Milan (MXP) - Manchester (weekly).

747-409F (30770, B-18718) delivery. 1 A330-201 (607, B-18302) delivery.

July 2004: China Airlines (CHI) Cargo, Taipei - Milan (MXP) - Luxembourg (weekly).

September 2004: Yao-Chung Chiang, Chairman, 52, ex-associate of Taiwan's President, succeeds Captain Yun-Ling Lee, 72.

October 2004: MD-11 (48469, B-18172), sold to Fedex (FED).

November 2004: 9,300 employees. SITA: TPEPRCI.

Taipei - Prague (2/week).

Will install Connexion by Boeing onboard Internet service on its airplanes, starting with its 747-400's in 2nd Q 2005, with service available on flights from Taipei to New York, Los Angeles, San Francisco, Anchorage, & Vancouver.

December 2004: 747-400 (24310) sold to Boeing (TBC) to be used to carry fuselage & wings structures parts & components for its 787 Dreamliner.

2 747-409's (33734, B-18210; 33735, B-18211) & A330-302 (641, B-18303) deliveries.

January 2005: 2004 = +25.1% (RPK) traffic; +20.9% (FTK) freight.

February 2005: 2 orders A330-302's (ILF) 8 year leased.

March 2005: In May 2005, Taipei - Vienna, via Bangkok (3/week), & Taipei to Frankfurt (to 6/week).

747-409 (33736, B-18212) delivery.

April 2005: 747-409 (33737, B-18215), delivery.

May 2005: 9,124 employees.

747-409F (33733, B-18720), delivery.

June 2005: A330-302 (671, B-18305), delivery.

July 2005: 747-409F (33738, B-18721) & A330-302 (675, B-18306), deliveries.

August 2005: 9,490 employees (+4%).

September 2005: China Airlines (CHI) joined with Cargolux (CLX) to take a 49% stake in Shanghai-based Yangtze River Express (YTH). The cargo carrier (YTH) operates four 737-300QCs and transports cargo within China for (UPS). According to a statement to the Taiwan Stock Exchange, China Airlines (CHI) will pay 312.5 million yuan/$38.6 million for its 25% stake. Hainan Airlines (HNA) has a 15% holding.

China gave the green light for China Airlines (CHI), (EVA) Air, Mandarin Airlines (MND) and Uni Airways (MAK) to transit its airspace after Taiwan agreed about a month ago that the carriers could apply for permission. Overflying China will cut the airlines' fuel consumption significantly on flights to Europe. Taiwan continues to spurn Chinese invitations to open direct flights to the mainland.

Swiss International Air Lines (CSR) reportedly plans to supply up to 60 pilots (FC) to China Airlines (CHI) for the carrier's 747, A330 and A340 fleets. The Pilots (FC) have been made surplus to Swiss (CSR) needs owing to its decision to phase out its Embraer EMB-145s and Saab 2000s. Another 15 pilots (FC) may find some work with Etihad Airways (EHD). Also, Jet Airways (JPL) of India is looking for some A340 pilots (FC) from Swiss (CSR).

Boeing (TBC) is moving closer to the launch of the 747-400ADV with the announced sale of four 747-400Fs to Nippon Cargo Airlines (NCA). According to insiders at (TBC), the next delivery slots are 747-400ADV airplanes. This year, (TBC) has sold 24 747-400s and now has a backlog of 30 net of five cancellations logged in 2005.

Cargolux (CLX) has announced its intention to order 10/20 747-400ADV freighters. Other carriers identified with the program are China Airlines (CHI), Malaysia Airlines (MAS), Japan Airlines (JAL), Singapore Airlines (SIA), and British Airways (BAB).

A330-302 (691, B-18307), delivery.

October 2005: Highlights of China Airlines (CHI)'s winter schedule which starts on October 30th includes new service from Taipei to Phnom Penh, resumption of service from Taipei to Phuket as well as an increase in frequencies to Chiang Mai, Hong Kong and Singapore.
Taipei - Phnom Penh starts on Nov 15th with 3 flights a week.
Taipei - Phuket has been operated on charter basis since July 13; frequencies will be increased to a flight each two days between October 12 to the end of the year. The Taipei - Phuket route will be resumed to daily regular service in January.

Mxi's Maintenix software will be used by China Airlines (CHI) as part of an agreement between (CHI) and Boeing (TBC) under which (TBC) will supply to (CHI) its Enterprise One solution of which Maintenix is a core component.

Focus Aviation (FOS) arranged the sale of two A300-600Rs on behalf of (CHI) to the Avion Group for operation by Air Atlanta Icelandic (AID).

A330-302 (699, B-18308), delivery.

November 2005: Philip Wei Hsing-Hsiung, Chairman, replaces Yao-Chung Chiang. Ringo Chao, President & CEO, 49.

China Airlines (CHI) purchased 20% of China Aircraft Services Ltd (CASL) of Hong Kong and said it will switch its Hong Kong jet airplane Maintenance Repair & Overhaul (MRO) and ground service from (HAECO) (CAT) to (CASL) in January. (CHI) bought 13.33% of (CASL) from China National Aviation Corporation and 6.67% from Hutchison Whampoa.

December 2005: China Airlines (CHI) will increase the frequency on its Taipei to Hiroshima route from the current 4 flights a week, on Mondays/Wednesdays/Fridays/Sundays, to daily service on January 21st and all flights will be operated with a 737-800.

4 A300B4-622R's (533; 536; 666; 775), sold to Air Atlanta Icelandic (AID). 536; to be delivered in June 2006, then converted to freighter. 666; 775; to be wet-leased in passenger configuration through late 2006, then converted to freighters. A330-302 (707, B-18309), delivery.

January 2006: Taiwan's China Airlines (CHI) acquired a 25% stake in China's Yangtze River Express Airlines (YTH). (CHI) Chairman Philip Wei attended a share transfer ceremony in Beijing finalizing the company's acquisition of shares in Yangtze River (YTH). The deal was valued at $38.7 million, according to media reports. Total share transfer among four investors was for 49%. Other partners include Yang Ming Marine Transport Corporation, which holds a 12% stake; Wan Hai Lines with 6%, and China Container Express Lines with 6%.

Established near Shanghai Hongqiao in 2002, Yangtze River Express (YTH) provides regional and domestic air cargo services originating from Shanghai with six 737-300Fs. It flies to Korea, the Philippines, Thailand, Bangladesh and Singapore and has secured traffic rights to Los Angeles and Frankfurt. It will introduce two 747 freighters this year. It is a subsidiary of HNA Group, which also owns Hainan Airlines (HNA) among other carriers.

China Airlines appointed Yung-hsiang Liu, currently VP, Europe, to be the new CEO of Yangtze River Express (YTH). The investment is part of (CHI)'s strategy of establishing air cargo operations in mainland China.

China Airlines will retrofit Aviation Partners Boeing (APB) Blended Winglets to 11 737-800s. Work at the carrier's Maintenance Repair & Overhaul (MRO) facility in Taipei will commence in March and be completed by year end.

A330-202 (714, B-18310), delivery.

February 2006: Chiang Kai-shek International Airport is to upgrade its two runways and also will update navigation guidance systems to meet international standards, the airport said. The cost of the two projects is expected to be approximately $218 million.

A330-302 (725, B-18311), (ILF) leased.

March 2006: China Airlines (CHI) will launch thrice-weekly Taipei - Abu Dhabi - Vienna service from April 25 aboard an A330-300. Flights to Vienna currently are direct. It also will add two frequencies to its thrice-weekly Seattle route from April 26 using A340-300s. Three of the five flights will continue to Houston.

2 A330-243's (PW4168A) (732, B-6122; 735, B-6123), deliveries.

April 2006: China Airlines (CHI) reported an after-tax profit of +TW$645 million/+$19.9 million in 2005 on record revenues of TW$108.6 billion, according to Taiwan's Government Information Office. Fuel accounted for 45% of the carrier's expenses compared to 27% - 28% in recent years. It posted a fourth-quarter loss of -TW$362 million, but plans to continue expanding its network with the purchase of six airplanes in 2006, comprising four A330s and two freighters.

China Airlines (CHI) played down suggestions that it is to become the launch customer for the 747-8 Intercontinental passenger version. According to Taiwan's Economic Times, the carrier will place a $2.5 billion order in June for 10 747-8s. However, an airline spokesperson cautioned that "we are still evaluating options." Boeing is keen to secure orders for the passenger version of the 747-8, which was launched late last year by Cargolux (CLX) and Nippon Cargo (NCA). Another potential launch customer, Singapore Airlines (SIA), is expected to make a fleet decision that may include the 747-8 freighter and passenger models at a May 9 board meeting. Emergence of the 747-8 as a competitor to the A380 has sparked sparring between Airbus and Boeing over the relative performance of each other's airplanes and the basis of the modeling criteria.

May 2006: China Airlines (CHI) will resume its Taipei - Osaka service from July 1 with five flights per week, daily except Mondays & Wednesdays, aboard an A330-300. It will inaugurate a six-times-weekly daily except Mondays, Taipei - Sapporo Chitose flight on July 1, and a twice-weekly on Wednesdays & Sundays, Kaohsiung - Nagoya service on July 2, both with 737-800s.

June 2006: China Airlines (CHI) will launch a twice-weekly cargo service between Taipei and Osaka on July 4 with a 747-400ERF.

China and Taiwan continued to relax air transport restrictions with the decision to allow more direct flights during holiday periods and cargo charters for the first time. Flights operated between the countries during the Chinese New Year proved popular and led to calls for increased service. Passenger flights could take place as early as October's Mid-Autumn Festival, Taiwan Mainland Affairs Council Chairman Joseph Wu said. Cargo flights will be allowed on a case-by-case basis. Six airlines from each country will be allowed to operate a combined 168 roundtrip flights per year during four select holiday periods.

747-409F (34265, B-18722), delivery. A330-302 (752, B-18311), delivery.

July 2006: Employees = 9,769.

China Airlines (CHI) resumed nonstop service from Taipei to Osaka's Kansai Airport. The airline now operates 5 flights a week, daily except Mondays & Wednesdays, using an A330-300. China Airlines (CHI) inaugurated nonstop service from Taipei to Sapporo. The airline now operates 6 flights a week, daily except Mondays, using a 737-800.
China Airlines (CHI) inaugurated nonstop service from Kaohsiung to Nagoya. The airline now operates 2 flights a week, on Wednesdays & Sundays, using a 737-800.

China Airlines (CHI) Cargo inaugurated cargo service from Taipei to Osaka Kansai. The airline now operates 2 flights a week, on Tuesdays & Thursdays, using a 747-400F Freighter. China Airlines (CHI) will launch a new cargo service between Taipei and Hanoi from July 19. Initially, the service will be weekly with a 747-400F as part of the carrier's Taipei - Penang service.

Taiwan's China Airlines (CHI) launched its first direct cargo flight to China in an important step for business relations between the two.
Officials say it will save considerable money for Taiwanese companies active on the mainland and avoid damage to fragile, high-tech equipment and components by skipping additional touchdowns in Hong Kong or other ports, according to the "Associated Press."

Under the new regulations, Taiwanese and Chinese carriers will be allowed to ship equipment and components used by mainland factories established by Taiwanese companies. Other cargo must still transit a third point, and even the cargo charters are required to pass through Hong Kong or Macau airspace.

Taiwan and China split in 1949 during the civil war; Taiwan has long banned direct transportation for fear that airplanes and ships from the Chinese mainland could be used as a cover for attack.

A330-202 (769, B-18312), delivery.

August 2006: China Airlines (CHI) lost -TWD257.1 million/-$7.8 million in the second quarter, double its -TWD124.1 million loss in the year-ago quarter, according to a filing with the Taiwan stock exchange cited by the "Associated Press (AP)" in Taipei. Revenues climbed +12% to TWD28.86 billion, but "oil remained our main problem in the second quarter, with fuel accounting for over 40% of costs," a spokesperson said.

The airline's half-year profit plunged -82% year-over-year to +TWD128.1 million from the +TWD694.8 million earned in the year-ago period, the (AP) reported. Six-month revenues increased +14% to TWD56.65 billion.

(CHI) will increase service on its Kaohsiung - Nagoya and Taipei - Guam routes in October to four-times-weekly from twice.

Delta (DAL) and (CHI) expanded their code share agreement to include (DAL) flights from Los Angeles to Hartford, Raleigh/Durham and Columbus and (CHI) flights to Taipei from six USA cities and onward to five Southeast Asian destinations.

Amadeus signed three-year agreements with China Eastern Airlines (CEA) and China Airlines (CHI) to power their international websites with its e-Retail Solution. Both airlines also plan to implement the Amadeus e-Merchandise solution within a few months.

Boeing (TBC) announced that China Airlines (CHI) will use the Maintenance Performance Toolbox and will be the first carrier to use it in conjunction with (TBC)'s Maintenance and Engineering Management application, which (CHI) adopted last year.

September 2006: China Airlines (CHI) will launch twice-weekly on Thursdays & Saturdays, Taipei - Houston Bush cargo service on September 30 aboard a 747-400F.

(CHI) will increase the frequency on its Kaohsiung to Nagoya route from 2 to 4 flights a week from October 1st. In addition to the current Wednesday & Sunday flights, the airline will add Monday & Thursday service, all operated with 737-800s. (CHI) will increase the frequency on its Taipei to Guam route from 2 to 4 flights a week from November 1st. In addition to the current Wednesday & Sunday flights, the airline will add Tuesday & Saturday service, all operated with 737-800s.

747-409F (34266, B-18723), delivery.

November 2006: China Aircraft Services (CASL), a joint-venture owned by China National Aviation Corporation (CNAC) and Hutchison Whampoa, plans to expand its line maintenance business into India and the Middle East in the next few years to capture growth opportunities in those regions, said Managing Director, Angus H W Cheung.

The company, is also investing HK$300 million to build a maintenance hangar at Hong Kong International Airport.

China National Aviation Corporation (CNAC) (Group) owns 40% of (CASL), while Hutchison Whampoa, United Airlines (UAL) and China Airlines (CHI) each owns 20%.

(CASL) initially offered base maintenance services to airlines, but is exploring ways to expand its existing line maintenance services to customers. Base maintenance work includes modifications, repair and overhaul of commercial airplanes and components, while line maintenance includes services provided during transit periods and routine turnarounds.

"(CASL) was concentrating on line maintenance services, but we are now looking at more opportunities for base maintenance business to expand our service portfolio," Cheung said.

(CASL), which is the second largest airplane maintenance company in Hong Kong, after HAECO (CAT) with a 30 percent market share, signed a new agreement with Airport Authority Hong Kong, late September, for a franchise providing airplane line and base maintenance services for 25 years from 2008.

New facilities being built at the airport, allows two wide-bodied commercial airplanes to be serviced at the same time.

Cheung said potential new business could boost (CASL)'s sales by 30 percent in the first year. However, he gave no details of (CASL)'s revenue and profit track record.

After North America and Europe, the next largest market is Asia-Pacific. Cheung said maintenance, repair and overhaul (MRO) spending in China alone is expected to grow +70.6 percent to US$2.9 billion/HK$22.62 billion by 2015.

"Base maintenance is a big business in itself. Many operators are in the same business and the competition is fierce in the region," Cheung said.

(CASL) has 30 airlines, but Cheung would not disclose how much revenue is generated from major shareholders.

He said the company would seek new clients, since more revenue could be generated by airlines that are not its shareholders. The company owns a joint-venture in Shanghai Pudong International Airport, which provides maintenance services. It has no plans to expand in China.

December 2006: China Airlines (CHI) Cargo inaugurated service from Taipei to Stockholm. The airline is operating 2 flights a week using a 747-400F Freighter. On the way to Europe, the airplane also stops in Abu Dhabi and Luxembourg. On the way back to Asia, the stops are in Abu Dhabi and Bangkok.

China Airlines (CHI) is expected to order 10 747-8 Intercontinentals later this month, according to Taiwan's "Economic Daily." (CHI) denied the report, but analysts suggest the airline will place the order, which will finalize a commitment made in mid-2006, but put on hold for political reasons. The airplanes will replace both 747-400s and A340-300s, insiders say.

January 2007: China's two top cargo airlines, Air China Cargo (CAO) and China Cargo Airlines (CKK), are set to merge before yearend in a bid to strengthen China's market share over foreign carriers, which currently control about two thirds of the country's air cargo volume. The two cargo airlines, which are affiliated with Air China (BEJ) and China Eastern Airlines (CEA), will merge into one company based in Shanghai, the country's economic hub, under the "China Cargo"'s name. The joint company will be a 50 - 50 venture between (BEJ) and (CEA).

March 2007: Starting March 25th, Kaohsiung - Chiang Mai, using 737-800s.

A330-302 (823, B-18315), delivery.

April 2007: 747-409F (30771, B-18725), delivery.

May 2007: Northwest Airlines (NWA) and China Airlines (CHI) signed a cooperation agreement, to be implemented August 1, that will include reciprocal frequent-flier benefits and lounge access as well as "one-stop check-in" for connecting passengers.

A330-302 (838, B-18316), delivery.

June 2007: China Airlines (CHI) flew 2.89 billion (RPK)s passenger traffic in May, up +5.7% from the year-ago month. Passenger numbers climbed +8.9% to 848,006.

August 2007: INCDT: They made it out just in the nick of time. The 157 passengers and eight crew members (FC)/(CA) had barely finished sliding down the emergency chutes of the smoking China Airlines (CHI) 737-809 (1182-30175, /02 B-18616), when it suddenly exploded, and flames engulfed the center of the airplane (see photo above). For the scores of holiday-makers and others who had flown on the jet from the Taiwanese capital, Taipei, to Naha on the Japanese island of Okinawa, it was a moment of sheer terror - even if there were no serious injuries. Screams erupted from the tarmac as passengers raced to get away from the burning plane, and emergency personnel moved forward to begin putting out the flames. A figure thought to be the pilot (FC) hung onto the cockpit window for several seconds before dropping to the tarmac and sprinting away from the exploding plane. A Taiwanese woman said she was stricken with fear the moment she slid down the chute. "I was running and crying," said the woman, who declined to identify herself. "Running and crying." Another passenger who gave only his surname, Chen, said he started running the moment he slid off the plane. "I ran so hard my sock tore," he said. "I think I got my life back."

Footage from Japanese broadcaster "NHK" showed a lone firefighter trying to douse the blaze with what appeared to be a chemical retardant immediately after the explosion. But the plane was quickly rocked by two more explosions, which brought the fuselage crashing onto the tarmac.

Japanese Transport Ministry official Akihiko Tamura said that airport traffic controllers had received no report from the pilot (FC) of the Taiwanese airliner indicating anything was wrong as it came in to land, and even as it stopped near the terminal to let passengers disembark. "The fire started when the left engine exploded a minute after the airplane entered the parking spot," he said.

China Airlines (CAL) spokesman Sun Hung-wen said that the 737-809 skidded after landing, igniting a fire that prompted the emergency evacuation. "The plane landed safely, so we are still checking why there was a fire," he said. Even after landing, passengers reported that nothing was amiss. But as the airplane came to a halt near the terminal, things started to go terribly wrong. The unidentified Taiwanese woman said first the left engine started to smoke, then the right engine, and then "there were these big bangs." "When the smoke started people were just pushing and shoving each other," she said. It was total chaos." A guide for Taipei's Southeast Tours, who identified himself by his surname Tsang, said that when the smoke started to billow outside the plane, the cabin crew was already standing by the doors, ready to bid farewell to the passengers. "The passengers saw the smoke first and they began to yell and demand that the doors be opened," he said. Tsang said the entire evacuation took no more than 90 seconds. "About 30 seconds after I slid down the chute and began to run toward the terminal I heard two big explosions," he said. "I had no idea it would be this serious."
Local fire official Hiroki Shimabukuro said two passengers - a 7-year-old girl and a man in his 50s - were hospitalized because they felt unwell, but not because they were injured. A ground engineer was knocked off his feet by the force of the blast, but was not hurt, the Transport Ministry said.

Initial reports from ground personnel showed that a fuel leak from the right engine could have led to a series of explosions, according to another ministry official, Fumio Yasukawa.

The fire was put out about an hour after it started, leaving the airplane charred and mangled. Taiwan's Civil Aeronautics Administration head Chang Kuo-cheng said authorities ordered China Airlines (CHI) and its subsidiary Mandarin Airlines (MDN) to ground their 13 other 737-800s pending a thorough inspection. Japanese aviation authorities also ordered an emergency inspection of all 737-800 planes owned by Japanese airlines, as well as some 737-700 models that carry a similar engine. The US Federal Aviation Administration (FAA) is sending investigators to examine the scene. The USA National Transportation Safety Board is also sending two investigators to Japan to look into the fire. Boeing (TBC) will likewise dispatch an investigator to Japan in response to a request from the local aviation authorities.

The Okinawa fire is a setback to China Airlines (CHI), which in recent years appeared to have improved on a troubled safety record.
A China Airlines (CHI) 747 crashed in 2002 as it flew from Taipei to Hong Kong, leading to 225 deaths, and some 450 people died in (CHI) accidents during the 1990s.

"We are prepared to do our best to get to the bottom of this incident," (CHI) President, Zhao Guo-shi told reporters at a press conference at Naha airport late Monday. "I apologize for the trouble we have caused our passengers."

Later, (CHI) was ordered by the Taiwanese government to ground temporarily its 11 remaining 737-800s for safety checks following the post-landing fire and explosion, that destroyed a 737-800 on a Monday morning at Naha Airport in Okinawa. A joint Japanese, Taiwanese and USA investigation into the incident has commenced. Initial examination of the wreckage by Japanese authorities yielded no immediate explanation. Japan's Aircraft and Railways Accidents Investigation Commission said a "possible fuel leak" was being investigated. A fire started in the right-wing engine 3 minutes after the airplane parked. All 157 passengers and eight crew (FC)/(CA) escaped. The two pilots (FC) were the last off, jumping through a cockpit window moments before the explosion, according to the airline. Taiwan's Civil Aeronautics Administration told (CHI) to ground its 737-800 fleet and two of the type operated by subsidiary Mandarin Airlines (MDN). Japan's Transport Ministry said it ordered Japan Airlines (JAL)/(JAS), (ANA) and Skymark Airlines (SKM) to conduct checks on 23 (CFM56)-powered 737-800s and no anomalies were found.

(CHI) CEO, Chao Kuo-shuai traveled to Okinawa following the incident and gave each passenger an envelope containing $100. "I feel ashamed for causing so much trouble," he said. The airline conceded it may have to provide further compensation for destroyed luggage.

The USA (FAA), (NTSB), Boeing (TBC) and officials from both Japan and Taiwan are collaborating in the investigation.

Prior to the accident, (CHI) flew 12 737-800s (including 11 with winglets), 15 A330-300s, six A340-300s (one stored) and 36 747-400s.

The USA (FAA) subsequently issued an Emergency Airworthiness Directive requiring "repetitive detailed inspections" of the main slat track downstop assembly on 737NGs in the wake of the fire and explosion on a (CHI) 737-800 in Okinawa. The agency said it had "evaluated all pertinent information and identified an unsafe condition, that is likely to exist or develop on other airplanes of this same type design." It called on operators to verify the installation of proper hardware, perform one-time torquing of the nut and bolt, and "corrective actions if necessary," including installation of a new or serviceable part and removal of foreign object debris. Regarding the (CHI) 737-800, the (FAA) said that following slat retraction after landing, "loose parts of the main slat track downstop assembly punctured the slat can, which resulted in a fuel leak and fire, that ultimately destroyed the airplane." Inspections are required within 24 days of receipt of the directive and after every 3,000 flights.

September 2007: Nordam Group signed an exclusive seven-year repair and overhaul agreement for (CF6-80C2) thrust reversers with China Airlines (CHI) under which it will perform all major bonding repairs and overhauls at its recently expanded Singapore repair facility, while supporting (CHI)'s execution of component maintenance manual repairs with on-site training and equipment.

October 2007: China Airlines (CHI) added Chairman to the title of President, "Ringo" Chao Kuo-Shuai, replacing Philip Wei, who resigned in the wake of the August engine fire and explosion on a (CHI) 737-800 in Okinawa, according to press reports from Taipei. Derek Cridland, Senior VP Maintenance & Engineering, ex-Cathay Pacific (CAT).

A330-302 (861, B-18317), delivery.

December 2007: China Airlines (CHI) said that its board approved the signing of a letter of intent (LOI) with Airbus (EDS) to purchase 14 A350 XWB-900s plus six options valued at $4.2 billion, if all options are exercised. The airplanes will be delivered from 2015 to 2020, replacing the airline's A340-300 fleet, and expanding its mid- and long-haul capacity. "The move re-affirms (CHI)'s determination to improve and modernize its fleet, expand its markets and meet passenger demand, in order to strengthen its position as a national carrier and to enhance Taiwan's role as a regional Asia/Pacific aviation hub," the carrier said. The A350-900s will be powered by Rolls-Royce (RR) (Trent XWB)s. Rolls (RR) placed the value of the engine deal at $800 million if all options are exercised. "This is the first time Rolls-Royce (RR) has been chosen as an engine supplier by China Airlines (CHI)," it said. "The announcement also marks the debut of the Trent series in Taiwan." (CHI) pointed out the "commonality" of the A350 to its A340s and A330s, "which will save substantial training costs through a pilot (FC) transitioning program." It plans to operate the airplanes in a two-class configuration "with a higher capacity of revenue passenger volume than the A340 and A330." Currently, its fleet totals 68 airplanes including 20 747-400F freighters. Its passenger fleet comprises 15 747-400s, 11 737-800s, six A340-300s and 16 A330-300s.

The announcement was considered a big win for Airbus (EDS). Boeing (TBC) has tried several times to entice (CHI) to order 777s and is striving to secure a buy from the carrier for its 747-8I.

January 2008: China Airlines (CHI) will be announced as the next full member of the SkyTeam (STM) alliance this year, a source close to the carrier said. Talks between (CHI) and SkyTeam (STM) members started last autumn.

(CHI) confirmed 14/6 orders (2015-02) A350 XWB-900s. Rolls Royce (RRC) said the accompanying (Trent XWB) order and TotalCare services agreement is worth up to $1.3 billion at list prices.

March 2008: Varig (VAR) announced an interline agreement with China Airlines (CHI).

May 2008: Taiwanese carriers China Airlines (CHI) and (EVA) Air reported first-quarter losses of -TWD2.97 billion/-$97.4 million) and -TWD2.29 billion, respectively. The airlines, which reported the results in filings with the Taiwan Stock Exchange cited by "Bloomberg News," each blamed high fuel costs for the poor results.

(CHI)'s loss was widened from a -TWD806 million loss in the prior-year quarter, while (EVA)'s loss compared to a -TWD331 million loss last year. (CHI)'s revenue increased +8.6% to TWD31 billion, while (EVA)'s rose +6% to TWD23.8 billion. (EVA) said its first-quarter fuel costs soared +34% year-over-year, while (CHI) said its overall costs increased +21.7% to TWD29.7 billion.

A330-302 (920, B-18353), (ILF) leased.

June 2008: Asia/Pacific airlines are responding rapidly and emphatically to the soaring cost of fuel and slowing global economy. Thai Airways (TII) announced that it will quit its nonstop services from Bangkok to New York (JFK) and Los Angeles, and sell off its four A340-500s to help stem losses due to surging oil prices. It estimates that losses on the two routes at current fuel prices would top $120 million. China Airlines (CHI) told "Bloomberg News" that it will ax 100 flights per month - - 10% of its capacity - - mainly to the USA, while (EVA) Air told the same news agency that it will cut services by -5%. (CHI) also will eliminate -50 all-cargo flights per month. However, on the upside is the likelihood of launch of weekend direct charter flights between Taiwan and mainland China, which will serve as a prelude to full scheduled services. Meanwhile, Air New Zealand (ANZ) announced it will raise fares for the second time in three weeks and cut services. Domestic and some international airfares will increase +4%, with flights to Australia, Japan and Hong Kong scaled back. These changes follow last month's fare hikes of an average +3% and a lowering of its profit forecast. Recently, Qantas (QAN) and Jetstar Airways (IMU) also have announced schedule reductions.

Airlines are concluding preparations for the launch of commercial charter flights across the Taiwan Strait, which are expected to start July 4, after an agreement between the Strait Exchange Foundation (Taipei) and the Association for Relations Across the Taiwan Strait (Beijing) was signed in Beijing. The deal allows for 18 direct flights across the strait each weekend (including Fridays). Taiwan will have access to Beijing, Shanghai, Guangzhou, Xiamen, and Nanjing, with future flights to Chengdu, Chongqing, Hangzhou, Dalian, Guilin, and Shenzhen under consideration. In turn, mainland Chinese carriers will be able to fly to Kaohsiung, Taipei, Taichung, Matsuyama, Penghu, Hualien, Kinmen, and Taitung. The agreement calls for negotiations on regularly scheduled direct flights to start "as soon as possible." Both parties agreed to discuss cargo charters in the next three months.

Passengers currently traveling between the Chinese mainland and Taiwan must transfer in Hong Kong, which typically adds 4 to 5 hoursd to the trip. The cross-strait flights also will help reduce operating costs and expand markets, which is important especially for struggling Taiwanese airlines suffering from fuel price hikes and fierce competition from high-speed rail.

Air China (BEJ) VP Zhang Lan said that the Beijing-based carrier will operate five airplanes to Taiwan. (BEJ) noted that "everything is ready now" and it planned to send a delegation to Taipei to conduct operational integration with China Airlines (CHI) and (EVA) Air.

China Eastern Airlines (CEA) plans to establish offices in Taipei and Kaohsiung. The Shanghai-based carrier sent a delegation led by Managing Director, Cao Jianxiong to Taiwan to discuss ground handling, Maintenance Repair & Overhaul (MRO), and other operational necessities.

China Southern Airlines (GUN) announced that it will sign a strategic agreement with (CHI) on June 23 to address both carriers' full-scale cooperation on cross-strait flights. (GUN) said it has concluded all its preparations.

July 2008: Guangzhou-based, China Southern Airlines (GUN) is expected to be the first Chinese mainland carrier to operate a charter flight across the Taiwan Strait, with Taiwan's China Airlines (CHI) following suit later from Taipei to Shanghai.

The first weekend of charter flights across the Taiwan Strait concluded with 11 carriers having offered services, which many regard as an important step toward the opening of scheduled flights between the Chinese mainland and Taiwan. The 11 airlines are Air China (BEJ), China Southern Airlines (GUN), China Eastern Airlines (CEA), Hainan Airlines (HNA), Shanghai Airlines (SHA), Xiamen Airlines (XIA), China Airlines (CHI), Mandarin Airlines (MDN), TransAsia Airways (FSH), Uni Air (MAK), and (EVA) Air.

Taiwanese aviation authorities reported that six airports handled 72 flights transporting 12,000 passengers July 4 through 7. Taipei Taoyuan handled 32 flights, followed by Taipei Songshan with 26. Makung (six), Kaohsiung (four), Taichung (two), and Hualien (two) handled the remainder. Corresponding statistics for the mainland were unavailable, but the (CAAC) (CAC) noted that there will be 144 roundtrip flights across the strait this month. Mainland carriers expect the flights to provide a new growth point as they have experienced slowing increases in demand, especially in May, when passenger volume dipped 1.1% year-over-year, the first decrease since 2003.

(GUN) Chairman Liu Shaoyong, who was aboard the inaugural A330 flight to Taipei, called the current allowance "too little" and said that "daily regular direct flights [without having to overfly Hong Kong] should be realized as soon as possible."

(CHI)'s former Chairman, Zhao Guoshuai, who resigned this week, agreed with Liu. He argued that "it is far from enough to operate only 72 charter flights every weekend." He expressed confidence that the flights "will exert a positive effect on (CHI)" as the mainland is a new market for the Taipei-based carrier.

Meantime, (CEA) already has established an office in Taipei. According to Managing Director, Cao Jianxiong, the Shanghai-based carrier plans to recruit staff and cabin crew in Taiwan in the future while (CHI) and (EVA) act as agents for ticket sales.

August 2008: China Airlines (CHI) 1st 6 months = a net loss of -$215 million (-$29 million).

Airlines on both sides of the Taiwan Strait want to launch weekday services, as weekend charter flights linking the Chinese mainland and Taiwan reach the one-month mark. "Judging from the one-month results, the weekend charter flights are indeed widely welcomed by people on both sides of the strait," (EVA) Air Vice General Manager, Nieh Kuo-wei told Chinese state news agency "Xinhua." Cross-strait charter flights kicked off on July 4 under an agreement signed by the China-based Association for Relations Across the Taiwan Strait and the Taiwan-based Straits Exchange Foundation. According to "Xinhua," there have been 144 roundtrip flights carrying some 53,000 passengers over the last four weekends. The average load factor is reported to be 87% LF.

Airlines on both sides of the Taiwan Strait carried 95,765 passengers across the strait with an average load factor of 87% LF over the seven weeks ended August 18, according to Taiwanese authorities. Taiwan Civil Aviation Chief, Li Long Wen told media that cross-strait routes are among the few profitable services operated by Taiwanese carriers. The Shanghai route reported the highest load factor at 92.3% LF, followed by 85.4% LF for Xiamen, 82.8% LF for Guangzhou, 78.7% LF for Beijing, and 77.3% LF for Nanjing. Owing to the strong traffic to Shanghai, China Eastern Airlines (CEA), Shanghai Airlines (SHA), China Airlines (CHI), and (EVA) Air have raised the business class (C) fare on the route to CNY6,500 from CNY5,500.

(CHI) assigned Philip Hsing-Hsiung Wei, Chairman, and Huang-Hsiang Sun, President.

November 2008: The dream of a direct routing across the Taiwan Strait is closer to reality following the signing of an agreement between Beijing's Association for Relations Across the Taiwan Strait and Taipei's Strait Exchange Foundation. The deal, which will take effect in 40 days, will allow carriers to bypass Hong Kong airspace and reduce flight time, operating costs, fuel burn, and emissions.

Taiwanese carriers will have access to 16 cities in mainland China in addition to Beijing, Shanghai, Guangzhou, Xiamen, and Nanjing. They are Chengdu, Chongqing, Hangzhou, Dalian, Guilin, Shenzhen, Wuhan, Fuzhou, Qingdao, Changsha, Haikou, Kunming, Xi'an, Shenyang, Tianjin, and Zhengzhou. The number of permitted weekly roundtrip flights will rise from the current 36 to 108.

January 2009: 747-409F/SCD (33729, B-18712) WFU to Victorville for storage.

March 2009: Another carrier looking for new capital is struggling China Airlines (CHI), which hopes to raise about $500 million by selling stock. The Taiwanese economy, heavily dependent on exports, is suffering an excruciating economic contraction.

April 2009: China Airlines (CHI) announced a net loss of -TWD32.35 billion/-$968.9 million for 2008, widened sharply from the -$77.5 million deficit reported in 2007. Operating loss of -TWD10.21 billion compared to -$41.54 million the prior year. (CHI) said fuel costs climbed +45% during the first three quarters of 2008 and falling demand offset declining fuel costs in the fourth. (CHI) lost -TWD21.05 billion on its fuel hedges. It said it is "optimistic" about 2009 thanks to "lower fuel prices, the success of direct links with mainland China and its continuous cost saving efforts." (CHI) also cited a possible increase in flights across the Taiwan Strait and said it is "confident that this will be a more prosperous year."

(CHI) as flag carrier of Taiwan, operates passenger and cargo jet airplane routes to 73 international destinations in 26 countries within Asia, Oceania, and to Europe and North America. Also flies the domestic trunk route between Taipei and Kaohsiung.

Employees = 9,684.

(IATA) Code: CI - 297. (ICAO) Code: CAL (Callsign - DYNASTY).

Parent organization/shareholders: China Aviation Development Foundation (61.55%).

Owns: Mandarin Airlines (MDN) (93.99%); Yangtze River Express (YTH) (25%); & Far Eastern Air Transport (FAT) (5.73%).

Alliances: Air Moldova; Alitalia (ALI); Delta Air Lines (DAL); Garuda Indonesia (GIA); Korean Air (KAL); Thai Airways (TII); & Vietnam Airlines (VIE).

Main Base: Taipei Taoyuan International Airport (TPE).

Hub: Kaohsiung International airport (KHH).

Domestic, scheduled destinations: Kaohsiung; & Taipei.

International, Scheduled Destinations: Amsterdam; Anchorage; Bangkok; Boston; Brisbane; Chiang Mai; Delhi; Denpasar (Bali); Frankfurt; Fukuoka; Guam; Hanoi; Hiroshima; Ho Chi Minh City; Hong Kong; Honolulu; Houston; Jakarta; Kuala Lumpur; Los Angeles; Manila; Nagoya; New York; Okinawa; Penang; Phuket; Rome; San Francisco; Seattle; Seoul; Singapore; Sydney; Tokyo; Vancouver; & Vienna.

Airlines on either side of the Taiwan Strait are expected to reap further benefits following the recent signing of an expanded agreement by the Taipei-based Strait Exchange Foundation and the Beijing-based Association for Relations Across the Taiwan Strait that will more than double the number of permitted flights. Direct cross-strait flights will be increased from the current 108 per week to 270. The increase likely will take affect in July. In addition, Taiwanese carriers will be granted access to six new cities - - Hefei, Harbin, Nanchang, Guiyang, Ningbo and Jinan - - bringing to 27 the number of mainland gateways available. Airlines flying to Taiwan from Guangzhou, Shenzhen and Xiamen no longer will be required to bypass Hong Kong, while an additional route to the north has been created to alleviate crowding aboard the increasingly popular services.

The frequency increase is not as high as was anticipated in February but still is significant. Cross-strait routes enjoy load factors of more than >80%, higher than nearly all domestic mainland and international routes despite the global economic and industry downturn. "The cross-strait routes are 'golden' routes, as they are the most profitable," (EVA) Air mainland spokesperson, Ke Jincheng said. "The supplementary agreement has encouraged us a lot and is very positive news for our carriers hit hard by the global financial crisis." (EVA)'s first quarter was its first three-month period in the black since the third quarter of 2007.

Industry analysts pointed out that China Eastern Airlines (CEA) should benefit most from the expanded agreement, as the Shanghai-based carrier has bases in Hefei, Nanchang, Ningbo and Jinan, while China Southern Airlines (GUN) has bases in Harbin and Guiyang, and Air China (BEJ) has a base in Jinan. (CEA) Board Secretary, Luo Zhuping said the carrier's cross-strait routes have operated at 80% to 90% capacity and that it plans to fly to Taiwan from the new cities.

On the cargo front, the new agreement permits belly freight for the first time and boosts cargo flights from the current 60 per month to 112.

May 2009: China Airlines (CHI) had a first quarter net loss of -$88 million (+$14 million), ex-special items. (CHI) reported TWD23.08 billion/$698.1 million in first-quarter sales revenue, down -25.6% from the year-ago quarter. March revenue fell -30% year-over-year to TWD7.62 billion.

July 2009: China Airlines (CHI) and subsidiary Mandarin Airlines (MDN) announced they will launch six new routes from Taoyuan, Taichung and Kaohsiung to Xiamen, Ningbo, Zhengzhou, Shenyang, Changsha and Xi'an aboard A330-300s, 747-400s, 737-800s and EMB-190s.

October 2009: For China Airlines (CHI) cargo status, see - - "CHI-WORLD TOP 10 CARGO 2008."

January 2010: China Airlines (CHI) will launch thrice-weekly, Taipei - London Heathrow (LHR) service on March 28. (CHI) previously served (LHR) through Amsterdam. (CHI) launched twice-weekly, Taipei - Miyazaki service aboard a 737-800.

April 2010: China Eastern Airlines (CEA) signed a strategic cooperation agreement with China Airlines (CHI) to explore jointly the fast-growing cross-strait market. Under the accord, both carriers would deepen cooperation in ground handling, cabin service, Maintenance Repair & Overhaul (MRO) and cargo. "We expect to enhance our service level and boost our international competitiveness to better serve passengers across the Taiwan Strait through cooperation with China Airlines (CHI)," (CEA) Chairman, Liu Shaoyong said.

(CEA) also plans to make Shanghai, its home base, into a hub to connect Taiwan to Western countries through its cooperation with (CHI). (CEA) currently operates 29 weekly cross-strait flights from Shanghai, Nanjing, Kunming, Wuhan, Xi'an, Qingdao, Hefei, Ningbo, and Nanchang. It also operates four weekly cargo flights to Taipei. In 2009, the total number of passengers carried by all airlines across the Taiwan Strait rose +16.3% to 5.41 million. (CEA) is the leader with 425,000, a sixfold year-over-year increase. Its cross-strait flights have an average load factor of 78.1% LF. Liu emphasized that (CEA) - (CHI) cooperation will be confined to operations and will not include sales.

May 2010: Lufthansa Technik (DLH) (LTK) signed a "long-term" Total Component Support contract with China Airlines (CHI) covering its fleet of 18 A330-300s and six A340-300s. (LTK) will supply maintenance, repair and overhaul (MRO), consignment stock optimization, supply chain management and home base stock allocation, reliability enhancement programs, documentation and warranty management.

September 2010: China Airlines (CHI) signed an "adherence agreement" with the SkyTeam (STM) alliance in Taipei, signaling the start of a joining process that will likely lead to it gaining full membership in the alliance by mid-2011. “The China Airlines (CHI) network will complement those of China Southern [Airlines] (GUN) and Shanghai-based China Eastern [Airlines] (CEA),” (STM) Managing Director, Marie-Joseph Male noted at the signing ceremony. “As the largest passenger and cargo airline providing services between both sides of the Taiwan Strait, the addition of China Airlines (CHI) to the SkyTeam (STM) alliance will mark a major milestone in Taiwan’s efforts to become one of Asia’s leading air transport and business hubs.” He added, “China Airlines (CHI) will bring four new destinations [Okinawa, Miyazaki, Surabaya, and Palau] to the (STM) alliance’s network.”

(CHI) Chairman, Philip Wei said, “As the first Taiwanese airline to join the world-class alliance, our strategic target is to continuously strengthen profitability and boost international market competitiveness.” (CHI) President, Sun Huang-Hsiang added that by joining the (STM), (CHI) can add around TWD1.6 billion/$50.4 million annually in passenger revenue.

SEE ATTACHED "AIRLINE BUSINESS" ARTICLE ON (STM) ALLIANCE - - "CHI-2010-10-STM ALLIANCE."

Launched in 1959, China Airlines (CHI) is Taiwan's largest carrier and operates a fleet of 66 airplanes, including 46 passenger jets and 20 freighters, to 93 destinations in 28 countries. It will become the (STM)'s 14th member. (CHI) will bring four new destinations to the (STM) alliance network: Miyazaki; Okinawa; Palau; & Surabaya.

The USA Department of Justice (DOJ) announced that China Airlines (CHI) agreed to pay $40 million in criminal fines for its role in a conspiracy to fix prices in the air cargo industry on flights to and from the USA between 2000 and 2006. The plea agreement is subject to court approval. According to the charge, (CHI) “carried out the conspiracy by agreeing during meetings and other communications on certain components of the cargo rates to be charged for shipments on certain routes to and from the USA and by levying cargo rates in accordance with the agreements reached. As part of the conspiracy, (CHI) monitored and enforced adherence to the agreed-upon cargo rates.”

Including (CHI), 18 airlines and eight executives have been charged in the (DOJ)’s ongoing investigation into air cargo price fixing.

To date, more than $1.6 billion in criminal fines have been imposed. Four airline executives have been sentenced to serve prison time. Charges are pending against the remaining four executives.

747-409F (30762, B-2436), leased to Yangtze River Express (YTH).

January 2011: China Airlines (CHI) started its 17th cross-Strait route: Taoyuan - Wuhan. Though operating just twice a week, big A330-300s are used.

March 2011: China Airlines (CHI) plans to introduce a strategic investor to help fund fleet expansion as air traffic across the Taiwan Strait increases, according to widespread news reports from Hong Kong. Although (CHI) Chairman, Zhang Jiazhu declined to name a carrier, he noted a strategic investor could help improve its management level.

In 2000, (CHI) planned to sell a stake to Singapore Airlines (SIA) but (SIA)'s shareholders rejected the proposal. Zhang revealed (CHI) plans to expand its fleet to 100 owing to rapid growth of cross-strait market demand.

As of February 28, (CHI) operated a fleet of 66 airplanes, comprising 13 747-400s, six A340-300s, 18 A330-300s, 10 737-800s and 19 747-400Fs. (CHI) is scheduled to take delivery of four A330s early next year. It also ordered 14 A350-900s, which are expected to be delivered between 2015 and 2018. In addition, it plans to order six more airplanes.

Zhang noted (CHI) is on track to join the SkyTeam alliance (STM) in the third quarter of this year.

Global Logistics System said China Airlines (CHI) has chosen its Web-based EzyFreight platform for message exchange between (CHI) and its agents.

May 2011: China Airlines (CHI) launched thrice-weekly, Taoyuan - Osaka Kansai - New York (JFK) service.

September 2011: China Airlines (CHI) on September 21 ends its frequent flyer program bilateral cooperation with Air China (BEJ), and on Septembger 28 will terminate its frequent flyer program bilateral cooperation with Hainan Airlines (HNA), including Hong Kong Airlines (CRY) and Hong Kong Express (HKE).

(CHI) officially joined the SkyTeam (STM) alliance, becoming the first Taiwanese airline to join the alliance. (CHI) becomes the SkyTeam (STM) alliance’s 15th member. China Southern (GUN) and China Eastern (CEA) joined the alliance in November 2007 and June 2011, respectively.

(CHI) operates 224 daily departures to 80 destinations and brings three new destinations to the SkyTeam (STM) Alliance’s network: Okinawa and Miyazaki, Japan, and Surabaya, Indonesia.

The SkyTeam (STM) alliance Managing Director, Michael Wisbrun said, “Thanks to excellent links to a number of existing SkyTeam (STM) hubs, China Airlines (CHI)’s membership adds value to the alliance for both passengers and cargo customers.”

(CHI) has also refreshed its brand image. At the joining ceremony in Taipei, the Taiwan flag carrier unveiled a new trademark, integrating its “Plum Blossom” trademark and a “Chinese Seal.”

October 2011: China Southern Airline (GUN)'s partner, China Airlines (CHI) is now serving 20 mainland China cities, up from zero before deregulation.

November 2011: (GE) Capital Aviation Services Limited (GECAS) (GEF), announced it will lease two new A330-300 airplanes to China Airlines (CHI) to further expand their fleet.

The airplanes come from (GEF)’s existing order book with Airbus (EDS). Delivery of the first airplane is scheduled for the fourth quarter of 2013.

China Airlines (CHI) operates a fleet of 68 airplanes to over >98 destinations in 29 countries across Asia and to Oceania, Europe, and the USA.

December 2011: China Airlines (CHI) wants to increase its share of transfer business at Taiwan Taoyuan International Airport (TPE) as part of its strategy for international growth and profitability.

(CHI) President, Huang-Hsiang Sun said that (CHI)’s share in transit passengers in (TPE) is “relatively small” and it would like to be viewed “as a network carrier and [for] (TPE) to become a strong hub.”

Sun believes that offering a 40 - 50 minute transit time through (TPE) will be an advantage compared to other big airports in the region such as Seoul Incheon.

(TPE)’s Terminal 1 is undergoing renovation, expected to be completed within the year, to increase capacity. The runways and taxiways are set to be expanded to accommodate larger airplanes by 2020. A third terminal is planned and should be open from 2018.

Sun said that current construction work is “inconvenient for our passengers, but from 2012 and on, the quality will improve.” (TPE) handles 25 million passengers; by 2020 that number is expected to rise to 48 million.

(CHI) joined the SkyTeam (STM) Alliance, which Sun noted has a strong presence in mainland China, in September. (CHI) is targeting passengers from (CHI)’s 24 Chinese destinations transferring via (TPE) to its global network, he said.

Taiwanese carriers have been able to offer scheduled flights to mainland China since 2009. In this short period, Sun said that mainland China has become part of (CHI)’s main business, accounting for about a 20% share, or about 106 weekly flights.

“In general, airlines from mainland China and Taiwan are able to operate 558 weekly flights,” he said, noting that (CHI) offers 154 weekly frequencies between Taiwan and Hong Kong. “So far the cake is big enough,” he said.

Looking ahead to 2012, Sun said that (CHI) is eyeing growth in other Asian markets, such as Japan, where (CHI) is considering adding two or three new destinations and increasing frequencies to existing destinations.

“We will see growth opportunities, thanks to new liberalized air services agreements, which [will] open up countries such as [South] Korea and the Philippines,” said Sun, who expects (CHI)'s capacity (ASK)s to increase +5% tp +10% year-over-year in 2012.

January 2012: Taiwan, independently governed, and Hong Kong, controlled by China, signed a new air bilateral.

China Airlines (CHI) Cargo is making adjustments in its operations to cope with a challenging global economic environment. “The cargo picture is not pessimistic, but it is challenging,” said President, Huang-Hsiang Sun. “Fuel prices are high. (CHI) Cargo operates long-haul flights. If fuel prices remain high as it is now, it will be very challenging for us.” He said Europe’s weak economy is adding to the problem.

To maintain capacity, (CHI) is dispatching freighters over its network to keep its 20-strong 747-400Fs fleet busy. (CHI) has increased cargo services on transpacific routes via Osaka Kansai (KIX), filling a void after Japan Air Lines (JAL) shut down freighter operations.

“Thanks to the liberalization of air service agreements, for example, we can do this between Taiwan and Japan. But we need more such agreements in Asia, otherwise our cargo loads will be very difficult to increase,” Sun said.

(CHI) Cargo operates seven weekly flights via (KIX) to North America.

“This kind of operation is very new for us, but that also means new opportunities,” he said.

(CHI) has also re-routed flights to Europe and offers multiple stops. “We operate via Southeast Asia to Europe and connecting new points together, [such as] from Bangkok or Ho Chi Minh City to Europe. In the past, we focused more on transpacific flights.”

Sun said that (CHI)'s 747-400F fleet is relatively young. Nevertheless, as the global cargo business has changed over the past several months, the strategy will have to be flexible, he said. (CHI) Cargo is leaving its options open regarding any fleet changes, as it balances the right airplane size with demand.

A330-202 (1278, B-18357), (GAP) leased, ex-(F-WWYK), delivery.

March 2012: SEE ATTACHED - - CHI-2012-03 - LONDON STOPPED."

May 2012: China Airlines (CHI) increased Taipei - Hong Kong - Jakarta service from 7x-weekly to 10x-weekly on May 6, and on May 15 will increase 3x-weekly, Taipei - Yangon service to 4x-weekly. {CHI)
started services from Taipei Songshan to Seoul Gimpo.

Virgin America (VUS) and Taiwan's China Airlines (CHI) have agreed on a new interline partnership, allowing passengers on both airlines to travel across their respective North American and Asian routes. (CHI) is (VUS)'s 11th interline partner.

The partnership allows connecting passengers to purchase interline tickets for travel between the USA, Taiwan and beyond, effective last month. Under the deal, China Airlines (CHI) provides service from Taipei, Taiwan to Los Angeles and San Francisco airport. Also, passengers of both airlines can travel between Taipei and Virgin America (VUS) destinations including Boston, Fort Lauderdale, Philadelphia, New York and Washington DC.

Adam Green, (VUS)'s Director Network Planning says: "Strategic partnerships like this one with China Airlines (CHI) are critical to driving connections over our San Francisco and Los Angeles airport bases."

Garuda Indonesia (GIA) and Taiwan’s China Airlines (CHI) have signed a memorandum of understanding (MOU) to broaden (GIA)’s network and offer customers of both airlines a wider choice of destinations.

“Of course, the agreement will reinforce [the code share] cooperation that already exists between our two companies” (GIA) President & (CEO), Emirsyah Satar said.

The code share agreement covers the following routes: Taipei (TPE) - Jakarta, (TPE) - Denpasar, (TPE) - Singapore - Surabaya and the return routes. The cooperation will be further developed to include other destinations, such as Dubai, Los Angeles, California and San Francisco, California.

(CHI) President, Huang-Hsiang Sun said he hopes the agreement will enable both airlines to improve their services as well as create opportunities for the companies’ future growth. “Garuda (GIA)’s success in carrying its business transformation truly reflects its readiness to join the SkyTeam (STM) alliance,” he said. (GIA) is expected to become a full member of the (STM) alliance this year.

July 2012: China Airlines (CHI) has signed a lease agreement with lessor (ILFC) (ILF) that will see (CHI) taking delivery of three new 737-800s in spring 2013 from an (ILFC) order. (CHI) currently operates ten 737-800s.

October 2012: China Airlines (CHI) added its second route to New Zealand’s biggest airport in Auckland (AKL) on 29 October. (CHI), which already serves Auckland from Taipei Taoyuan via Brisbane, now also extended its route to Sydney (SYD) to continue across the Tasman Sea. The four weekly flights are operated with A330-300s and (CHI) faces considerable competition on the Sydney to Auckland sector. Qantas (QAN) and Air New Zealand (ANZ) operate 34 weekly flights each, while Emirates (EAD) operates daily, (LAN) six times weekly and Jetstar (IMU) and Virgin Australia (VOZ) each five times a week.

China Airlines (CHI)’s cargo division became the 10th member of SkyTeam (STM) Alliance Cargo. (CHI) joined the (STM) Alliance in September 2011.

(CHI) Senior VP, James Yu said, “Completing all the prerequisites and joining as an official member of (STM) Alliance Cargo is by no means a closure, but the beginning of a journey.”

SkyTeam (STM) Alliance Cargo Executive, Tony Charaf said the new membership will “significantly strengthen our global reach. With its extensive route network throughout Asia, Europe, North America and Oceania, plus strong exposure in the cross-strait market, China Airlines (CHI) will certainly enhance the network and opportunities of the (STM) alliance.”

(CHI) operates 51 passenger jets and 21 747-400F freighters.

December 2012: Boeing (TBC) has confirmed a $2 billion China Airlines (CHI) order for six 777-300ERs, marking the entry of the 777 into the Taiwan carrier’s fleet.

(CHI) is in the middle of a long-haul fleet renewal and said it plans to operate the 777-300ERs on new transpacific flights between North America and Asia.

Boeing (TBC) also said China Airlines (CHI) also will lease four 777-300ERs from (GE) Capital Aviation Services (GECAS).

(CHI) operates 23 747-400s and 737-800s, and two 747-400Fs.

January 2013: Four SkyTeam (STM) Alliance airlines have launched a new program to strengthen their ties on services between China, Taiwan, and Hong Kong. Taiwan's China Airlines (CHI) and mainland Chinese carriers: China Southern Airlines (GUN), China Eastern Airlines (CEA), and Xiamen Airlines (XIA) have launched the Greater China Connection program, in which the airlines will jointly develop marketing and product strategies for travellers throughout greater China.

The program will give members of each carrier's frequent flyer programs mutual privileges and lounge access, while the combination of code shares across the four carriers will allow passengers more flexibility, say the airlines. They add that the program will extend across 41 airports and include more than >270 cross-strait flights per week.

The program will enhance the positions of the four carriers in the important cross-strait market, which has grown considerably since first direct flights between China and Taiwan started in 2009 on the back of strong business and leisure traffic.

In December 2012, the two countries were scheduled to hold talks that are expected to lead to an increased number of flights across the straits.

Profits have tumbled or become losses at China Airlines (CHI) and (EVA) Air, Taiwan's two largest carriers and its only intercontinental ones. But the financials (affected by the usual suspects of high fuel and depressed freight and economic certainty) belie sound restructuring the carriers are making to respond to significant changes in the Taiwanese market, long one of the quietest areas in North Asia.

The opening of cross-Strait flights to China has, in a short time frame, delivered them an entirely new and very profitable market. It has meant pulling back elsewhere to pump capacity into the mainland - although additional airplanes were also acquired.

China Airlines (CHI) is looking to permanently de-emphasise cargo's revenue contribution, sensing it to be too volatile, while (EVA) Air wants to increase its share. As the mainland market continues to expand, new growth (and competition) is also emerging from Japan after an "open skies" bilateral agreement. Further liberalization across Asia will open new markets, but serving regional routes bears the risk of being pushed off if low cost carriers (LCC)s, much discussed in Taiwan (but mostly ignored) gain traction.

For all the change that has occurred, much more is inevitable in 2013.

March 2013: China Airlines (CHI) became the first carrier to connect Taiwan and the Japanese island of Shikoku, as it launched services on the 1,600 km route from Taipei Taoyuan (TPE) to Takamatsu (TAK) on 21 March. The start of this service coincides with the Setouchi International Art Festival that takes place on multiple islands of the Seto Inland Sea, providing visitors with an opportunity to learn about the region’s heritage, including the famous, locally produced Sanuki udon noodles. Twice-weekly departures are offered on the new China Airlines (CHI) route and operated with a 737-800. Takamatsu is the 12th destination served by (CHI) in Japan.

China Airlines (CHI) plans to launch a low-cost carrier (LCC) in Taiwan in conjunction with TransAsia Airways (FSH), according to (CHI) Chairman, Sun Hongxiang. There is no timetable for the joint venture (JV) and its ownership ratio is still being determined. The new entity is expected to order six Airbus A320s or A321s initially and operate routes within Asia and Hawaii.

There are currently no Taiwan-based (LCC)s and foreign (LCC)s currently dominate the market.

In August 2012, TransAsia Airways (FSH) Chairman, Lin Mingsheng proposed creating a more favorable operating environment to Taiwan’s aviation authority, paving the way for Taiwanese carriers to launch their own (LCC)s.

It has become a growing trend for Asian legacy carriers to launch (LCC)s to compete against fast-growing Asian (LCC)s. All Nippon Airways (ANA) launched Peach Aviation (PCA) and Korean Air (KAL) established Jin Air (JIN). Singapore Airlines (SIA) operates Scoot Airlines (SCT), and China Eastern Airlines (CEA) is expected to launch Jetstar Hong Kong (JHK) in the second half of this year.

April 2013: Transaero Airlines (TRX) has signed a code share agreement with Taiwan’s China Airlines (CHI) on the Moscow - Bangkok - Taipei route.

(TRX) (CEO), Dmitry Stolyarov said (TRX) has plans to establish a direct Moscow - Taipei flight. According to Stolyarov, (TRX) operates more than >20 scheduled flights per week from Russia’s largest cities to Bangkok. The code share, which was signed for only Moscow - Bangkok flights, will be expanded to routes from Russian regions.

Russia and Taiwan have not established diplomatic relations. Experts say authorities in mainland China do not oppose direct flights between Russia and Taiwan if they are operated by private carriers.

Transaero (TRX) received rights for a Moscow - Taipei route in the mid-1990s, but flights ceased after a short period due to a lack of demand.

June 2013: China Airlines (CHI) became the second Chinese carrier to operate the 3,700 km route from Taipei Taoyuan (TPE) to Urumqi (URC), when it launched its thrice-weekly service on June 25. The A330-300 operated service faces competition from China Southern Airlines (GUN)’s also thrice-weekly flights.

737-8Q8 (41788, B-18653), (ILF) leased and 747-409 (28711, B-18203), re-painted into special "Jimmy" titles.

July 2013: China Airlines (CHI) commenced operations on its fourth route to Hong Kong (HKG) on July 18. (CHI), which already serves Hong Kong from Taipei Taoyuan (83 weekly frequencies), Kaohsiung (28) and Jakarta (11), now also offers a thrice-weekly schedule from Tainan (TNN) in south-western Taiwan. The 620 km route is served with (CHI)’s 737-800s. This is the first international service from Tainan by any airline.

Unsurprisingly, Taiwan’s leading two airlines control capacity at Taipei Taoyuan International airport (CHT), commanding nearly 50% of weekly flights and seats. Although both China Airlines (CHI) (+12% weekly flights) and (EVA) Air (+11%) have delivered double-digit growth at the airport in the last twelve months, it is Mandarin Airlines (MDN) which has provided the biggest increase in weekly flights (+39%). The China Airlines (CHI)’s domestic and regional subsidiary has launched new flights to Ishigaki (twice-weekly) and Okinawa (four times weekly) in Japan, as well as Lijiang (thrice-weekly) in China. TransAsia Airways (FSH) is also growing fast at the airport, with +21% more flights available this August versus those offered for the same month last year. SEE ATTACHED - - "CHI-2013-07 - TAIPEI TAOYUAN TOP AIRLINES."

September 2013: China Airlines (CHI), Taiwan’s biggest airline, began services on September 1st from Taipei Taoyuan (TPE) to Busan (PUS) in South Korea. The 1,352 km, six times weekly operation will be flown on (CHI)’s 158-seat 737-800s against some entrenched competition, namely Air Busan (ABN) (seven weekly flights) and TransAsia Airways (FSH) (five). Busan, the second largest city in South Korea, becomes (CHI)’s second route to the country after its existing 11-weekly operation to Seoul Incheon.

December 2013: (GE) Capital Aviation Services Limited (GECAS) (GEF) announced delivery of a new leased A330 airplane to China Airlines (CHI) to help modernize its fleet. This is the first of two A330s that will be leased to (CHI). The second is scheduled for delivery in 2014. The airplanes come from (GECAS)’ existing orderbook with Airbus.

In addition to these new deliveries, in December 2012, (GEF) announced it would lease four 777-300ERs to China Airlines (CHI) with deliveries scheduled to begin in 2014. (GEF) currently leases eight EMB-190s to Mandarin Airlines (MDN), a subsidiary of China Airlines (CHI).

Founded in 1959, China Airlines (CHI) is a full-service flag carrier of Taiwan, operating a fleet of 75 regional and international airplanes to over >110 destinations in 29 countries across Asia and to Oceania, Europe, and the USA.

China Airlines ((IATA) Code: CI, based at Taipei Taoyuan) (CHI) has beaten local rivals TransAsia Airways ((IATA) Code: GE, based at Taipei Sung Shan) (FSH) in the race to establish Taiwan's first Low Cost Carrier (LCC) with the signing of a joint-venture (JV) agreement with Singapore's Tigerair ((IATA) Code: TR, based at Singapore Changi) (TGR) establishing Tigerair Taiwan (to be based at Taipei Taoyuan). Tigerair Taiwan is expected to begin operations at the end of 2014.

China Airlines Chairman, Sun Huang-Hsiang said the (JV) should “stimulate demand in the civil aviation market here, usher in a new era for the local aviation industry and create Taiwan’s first (LCC).”

Tigerair (TGR) (CEO), Koay Peng-Yen said the agreement will “help us enter new markets in Taiwan, Japan, and Korea. The combination of China Airlines (CHI)’s familiarity with these markets and our experience in the (LCC) industry makes us even more confident of establishing a competitive (LCC) that will continue to grow.”

(CHI) said that “preparations for the formation of the new airline will immediately get underway in accordance with the regulations of the Civil Aeronautics Administration (CAA). Tigerair Taiwan will have a capitalization of NTD2 billion/$67 million with the China Airlines Group holding a 90% stake and Tigerair (TGR) 10%.”

The network will cover major destinations in Northeast and Southeast Asia, Hong Kong, Macau, China, and Taiwan. SEE ATTACHED - - "CHI-2013-12 - TIGERAIR TAIWAN," SHOWING L - R, LIN PENG LIANG, (CHI) PRESIDENT; SUN HUANG HSIANG, (CHI) CHAIRMAN; KOAY PENG YEN (TGR) (CEO); & HO YUEN SANG (TGR) (COO).

(CHI) currently operates 76 airplanes, and serves 27 countries, 76 destinations, on 123 routes and 211 daily flights.

A330-302 (1450, B-18360), ex-(F-WWYA), (GEF) leased.

January 2014: China Airlines (CHI) started a new seasonal service on January 17th between Taipei Taoyuan (TPE) and Weihai (WEH) using its 158-seat 737-800s. The weekly (Fridays) service on the 1,321 km route will operate until March 28th and faces no competition. In 2012, Weihai Dashuibo Airport, in Shandong Province, ranked 61st in China, handling 912,000 passengers, a small decline from the 935,000 in 2011, when the airport ranked 54th.

February 2014: China Airlines (CHI) will take over the Taichung Ching Chuan Kang to Osaka Kansai route, currently flown by subsidiary, Mandarin Airlines (MDN). (CHI) will begin daily services on March 30, 2014 using a 737-800. (MDN) currently operates five weekly EMB-190 services on the route.

March 2014: Airplane lessor, Avolon (AZV) has delivered a Boeing 737-800 to China Airlines (CHI). This is the first of a two-part airplane placement for Boeing 737-800s with China Airlines (CHI).

April 2014: China Airlines (CAL), Taiwan's largest carrier, posted NT$12.36 billion/US$410.22 million in sales last month, up +16.93% from a month earlier and +5.63% from a year earlier, the company said in a filing to the Taiwan Stock Exchange.

May 2014: China Airlines (CHI) has inked agreements with Air Lease Corporation (ALE) for three new Boeing 737-800s, which are scheduled for delivery in 2015 and 2016. These 737-800s are from (ALE)’s order book from Boeing (tbc). Chairman, Huang-Hsiang Sun said the addition of the new airplanes will “further strengthen our competitiveness in the regional service and enhance our overall product offering.”

June 2014: China Airlines (CHI), Taiwan's largest carrier, received delivery of the last of three new Boeing 737-800 jets it ordered in late 2012 to strengthen its competitiveness in the Asia Pacific region.

The latest delivery brought the total number of airplanes owned by (CHI) to 79, including 58 passenger jets and 21 freighters. (CHI) is also scheduled to receive one Airbus A330-300 by the end of June and three Boeing 777-300ERs in September.

In addition, (CHI) said it will introduce 14 A350-900s starting in 2016 to increase its capacity on medium-haul routes.

737-8FH (39943, B-18657), (SMBC) Capital leased, and A330-302 (1539, B-18361), ex-(F-WWCP, (GEF) leased.

July 2014: China Airlines (CHI), the flag carrier of Taiwan, expanded its cross-strait offering with a new service from its Taipei Taoyuan (TPE) hub to Xuzhou (XUZ) on July 14th. The 1,090 km sector to the fourth largest city in the Jiangsu province will be served thrice-weekly, using the SkyTeam (STM) Alliance member’s 158-seat 737-800s. Competition on the new airport pair is provided by TransAsia Airways (FSH)’s thrice-weekly flights and China Eastern Airlines (CEA)’s twice-weekly operations.

(GE) Capital Aviation Services Limited (GECAS) (GEF) announced delivery of a new leased Airbus A330-302 (1367, N18359) airplane to China Airlines (CHI). The A330-302 was subsequently sold to Intrepid Aviation (INL).

Founded in 1959, China Airlines (CHI) is the full-service flag carrier of Taiwan, operating a fleet of 80 airplanes to 110 regional and international destinations in Asia, Oceania, Europe and the USA.

INCDT: China Airlines (CHI) Boeing 737-809 (CFM56-7B26) (113-28402, /98 B-18601) performing flight CI-7916 from Yangon (Myanmar) to Taipei (Taiwan) with 155 passengers and 8 crew, was enroute at FL370 about 250 nm northwest of Bangkok, when the crew noticed a burning odor near the main cabin door 1L, then observed smoke and arcing. While cabin crew (CA) discharged fire extinguishers the flight crew (FC) diverted the airplane to Bangkok. The airplane entered a hold at 6000 feet, climbed to FL100, descended to 7000 feet again to enter another hold and landed safely at Bangkok about 2 hours after leaving FL370.

Taiwan's Aviation Safety Council reported the occurrence on July 16, 2014 stating that an investigation into the Fire/Smoke occurrence has been opened.

August 2014: China Airlines (CHI) is to operate three return flights a week between Christchurch and Taiwan via Sydney for an initial summer season from December 2 this year to March 1 next year. "The South Island was a very popular destination for the Taiwanese in the 1990s. The new summer service will connect with the valuable Taiwan market, whose travelers are keen to experience the many attractions of the South Island."

The service would offer an extra +24,000 seats between Christchurch - Sydney - Taipei, which would also open up other travel routes from the South Island via Sydney. (CHI) would be the first member of the Sky Team (STM) Alliance, which includes China Southern Airlines (GUN) and China Eastern (CEA), to connect with the South Island. "This service also brings another wide body airplane into Christchurch, so it is great news for the air freight industry. Importantly, (CHI) also provides a great network for exporters to get high value air freight into the fast growing Asian markets quickly."

Making Christchurch as New Zealand's second city more connected globally was a principal driver of economic growth and will help the economy in a number of areas. "The service will also offer more freight capacity to Sydney and on to Asia, so another opportunity for fresh and time sensitive goods."

A new code share agreement between China Airlines (CHI) and Qantas (QAN) represents the latest step in (QAN)’s drive to expand its Asian network. Under the deal, (QAN) will place its code on (CHI)’s flights from Brisbane and Sydney to Taipei (routes that (QAN) offers as a one-stop connecting service). The agreement does not apply to any routes beyond Taipei or Australian domestic routes, a (QAN) official said. However, the carriers have interline agreements covering such flights.

The code share agreement is expected to begin October 15, although it is subject to regulatory approvals.

Since cutting back its European services, (QAN)’s strategy has been to increase its focus on Asia. Besides using its own flights and those of its Jetstar (IMU) affiliates, (QAN) has been relying on new partnerships to boost its network in this region. (QAN) said the China Airlines (CHI) deal will complement its commercial relationships with China Eastern (CEA) and China Southern (GUN). (QAN) also has a relationship with Cathay Pacific Airways (CAT) through the Oneworld (ONW) Alliance, although this relationship has become somewhat strained.

In addition, (QAN) has put a high-profile bilateral alliance with Emirates (EAD) in place for traffic flows to and from Europe.

(QAN) executives say (QAN)’s traffic on connecting routes to Taipei has been growing, and offering direct service (via code sharing) will enhance this market.

(QAN) already serves Taipei by connecting with other carriers at three points on its network. It has a code share deal with partner, Jetstar Asia (JSA) via Singapore, and also interlines with Cathay (CAT) via Hong Kong and Shanghai.

(QAN) believes the direct route will particularly appeal to business travelers who need to fly to one city and return via another (for example, flying into Taipei and returning to Australia from Singapore).

The other airline linking Taiwan and Australia directly is (EVA) Air, with a 3x-weekly flight between Taipei and Brisbane. (QAN) previously code shared with (EVA) on this service, but ended the arrangement in March 2013.

September 2014: China Airlines (CHI), Taiwan's largest airline company, said that it will offer three non-stop flights to New York per week from October 2.

The service, using Boeing 747-400 jets, will be every Monday, Thursday and Saturday at 5:30 pm, arriving at John F Kennedy International Airport at 8:15 pm the same day, (CHI) said.

The return flight will have a stopover in Anchorage, Alaska, and will arrive at Taiwan Taoyuan International Airport two days later at 5:55 am, (CHI) said.

Starting next February, (CHI) will use its newly acquired Boeing 777-300ERs on the route, it said.

The company began operating non-stop flights between Taoyuan and New York in 1983, but began using a service stopover in Osaka, Japan in 2011.

Delivery of 1st 777-300ER (B-18051) of 10 on order, including 4 via (GEF) leases. At this time there will be 6 777-300ER operators in Greater China: Cathay Pacific (CAT), Air China (BEJ), (EVA) Air, China Southern Airlines (GUN), China Airlines (CHI), and China Eastern Airlines (CEA).

(CHI) will operate its first 777-300ER on the route between Taiwan and Hong Kong from October 1. (CHI) will take delivery of two more 777-300ERs before the end of 2014 and deploy 777-300ERs on other Asian routes, before using them on services to New York, Los Angeles, San Francisco, and Frankfurt. (CHI) will replace its aging 747-400s with the 777-300ERs.

China Airlines (CHI) will drop first (F) class and introduce premium economy (PY) on its 777-300ER, which has a three-class configuration with 358 seats, including 40C business class seats, 62PY premium economy seats and 256Y economy class seats.

In addition, (CHI) will offer "Family Couch" seats in the economy (Y) class cabin of its new 777-300ER. Each 777-300ER has a total of 30 Family Couch seats in the first 10 rows of economy (Y) class, where a set of three seats can be turned into a sofa bed.

October 2014: Taiwanese flag carrier China Airlines (CHI) has taken delivery of its first of 10 Boeing 777-300ERs. The airplane will be used on routes to Hong Kong in October and will eventually be introduced on transpacific routes, connecting Taipei with major cities in North America, including, San Francisco and New York.

The airline configured its 777-300ER to seat 358 passengers in a three-class layout highlighted by the new “Family Couch” seats in economy class, where three seats convert into a flat surface for rest and relaxation.

December 2014: China Airlines (CHI) on December 1st extended its existing Taipei Taoyuan (TPE) to Sydney service on to Christchurch (CHC) in New Zealand. The 9,225 km route will be served thrice-weekly (Mondays, Thursdays, Saturdays), using (CHI)’s A330-300s, configured with 30C seats in business class and 277Y seats in economy class. The service will run until February 28th 2015. No other carrier serves this airport pair. (CHI) already operates eight flights per week from Taipei to Auckland; four via Sydney and four via Brisbane.

China Airlines (CHI) has deployed its brand new Boeing 777-300ER airplane on the Taipei - Los Angeles route. The new 777-300ER comes equipped with 358 seats, including 40C flat-bed seats in a brand new business class cabin, plus 62PY seats in premium economy and 256Y in economy. It also features the new "Family Couch" concept that converts 10 rows of three economy (Y) class seats into flat beds.

The 777-300ER is equipped with in-flight Wi-Fi and a new "seat chat" concept that allows passengers send text messages to other seats.

(CHI) has ordered seven 777-300ERs and has so far taken delivery of three. These will be used to replace its older 747-400 airplanes. And (CHI)'s fleet renewal strategy will continue in the coming years, with the arrival of (CHI)'s new fleet of Airbus A350-900s from 2016.

The 777-300ER will operate the Taipei - (LAX) route twice a day. And the USA roll-out of the new 77-300ERs will continue in 2015, with the 777-300ER being deployed on flights to New York from February and San Francisco from September.

January 2015: 777-36NER (41823, B-18055), (GEF) leased.

March 2015: News Item A-1: China Airlines (CAL), Taiwan's largest carrier, said it will invest in the development of its own maintenance, repair and overhaul (MRO) facility.

(CAL) Chairman Sun Hung-hsiang said Taiwan Aircraft Maintenance & Engineering Company (TAMECO), which (CAL) established earlier this year, will start operations in June 2017.

The new company will capitalize on Taiwan's existing developments in aerospace, bringing in more talent to enhance (CHI)'s general competitiveness, Sun said. "It is becoming popular for airline companies to explore (MRO) business," Sun said, adding that (CHI) is well-positioned as it has worked closely with 12 local college departments on aerospace development over the past two years.

(TAMECO) said it will start recruiting in the second quarter of 2016 and focus on Boeing 777/737 and Airbus A350/A320 fuselage maintenance.

Located near Taiwan's main international airport in Taoyuan, (TAMECO) will have a maintenance hangar available that can simultaneously park two wide body and two narrow body airplanes.

News Item A-2: China Airlines (CHI), Taiwan's largest airline company, started cargo shipping on a new route between the northern city of Taoyuan and the southeastern Chinese city of Shenzhen on March 21st. (CHI) will operate three flights per week on this route using Boeing 747-409F jets.

(CHI) is hoping to explore the shipping market in China and said it believes the new route could meet the growing demand for shipment of consumer electronics and express air parcel, as Shenzhen is a major hub for e-commerce and online shopping.

Eyeing more lucrative cargo business in 2015, (CHI) said it hopes the route could help establish a more comprehensive shipping network across the Taiwan Strait.

The Taoyuan - Shenzhen service will bring (CHI)'s total cross-strait cargo operations to 17 flights per week, covering the destinations of Shanghai, Nanjing, Chongqing, Xiamen, Zhengzhou, and Guangzhou.

777-309 (43978, B-18001), delivery.

June 2015: News Item A-1: China’s Airlines Reroute Flights, Refund Tickets to South Korea after Middle East Respiratory Syndrome (MERS), Alert" by (ATW) Jeremy Torr, June 10, 2015.

Following a Middle East Respiratory Syndrome (MERS) Red Alert warning by the Hong Kong government, warning travelers against flying to Korea, Cathay Pacific Airways (CAT) and its subsidiary, Dragonair (DRG) have committed to refunds or re-routing for all existing tickets to Seoul, Busan and Jeju up to the end of August.

In addition, Taiwan-based China Airlines (CHI), (EVA) Air, TransAsia Airways (FSH), and Mandarin Airways (MDN) are also offering full-refund cancellations in the immediate term for Korean flights.

Korea has reported 95 cases of (MERS), with seven deaths in the country. As a result, the Hong Kong Security Bureau issued an Outbound Travel Alert (OTA), advising passengers to avoid “all non-essential travel” to the country.

In addition, Taiwan and Macau have both advised against unnecessary travel to any destination in South Korea, and are mandating that passengers wear facemasks disembarking from Korea-originating flights.

Since the virus was discovered in 2012 in Saudi Arabia, the (MERS) outbreak has killed more than >300 people in more than >20 countries. First identified in Saudi Arabia where it claimed the lives of more than >100, (MERS) is suspected of being spread by respiratory and direct contact vectors.

Cathay Pacific (CAT) and (DRG) say they are “monitoring the situation closely” and have provided extra facemasks, hand sanitizers and gloves for use on any airplanes traveling to Korea. Both carriers are looking at extra sanitation procedures in addition to routine cleaning on airplanes flying to potential infection areas.

July 2015: News Item A-1: China Airlines (CHI) said it could see an additional +500,000 passengers on the cross-strait route between China and Taiwan if the transfer ban on Chinese layovers in Taiwan is lifted this year, said Chairman, Huang-Hsiang Sun.

News Item A-2: China Airlines (CHI) is seeing improvement in yields on its North American routes since introducing the Boeing 777-300ER, replacing the four-engine 747-400, Chairman & (CEO) Huang-Hsiang Sun said.

News Item A-3: China Airlines (CHI) will launch nonstop flights to Melbourne on a seasonal basis starting in October to capitalize on rising demand for travel to Australia.

(CHI) will fly between Taipei to Melbourne 3x-weekly beginning on October 25 and offer the service until March 26, 2015.

Flights will leave Taiwan on Tuesday, Friday and Sunday and return from Melbourne on Wednesday, Saturday and Monday. The three flights a week will continue on to Christchurch, New Zealand, a strategy encouraged by strong demand from Taiwanese tourists interested in combining Australia and New Zealand in one trip during the Southern Hemisphere's summer months.

In December 2014, (CHI) flew a new route from Taipei to Sydney and then on to Christchurch on a seasonal basis, and the passenger load factor on the flights averaged about 90%.

(CHI) said the new seasonal services to Melbourne and Christchurch are expected to be just as welcome in the market.

(CHI) was the first carrier in East Asia and the first in the SkyTeam (SKT) Alliance to operate flights to Sydney and Christchurch.

(CHI) will re-launch the Taipei - Sydney - Christchurch service again this year on a seasonal basis with three round-trip flights a week from October 26 to March 26, 2015.

(CHI) will use A330-300s, with a capacity of 30C business class seats and 277Y economy class seats, on all of the seasonal routes.

(CHI) currently flies to Sydney 4x-weekly, with three of them going on to Auckland, and three times a week to Brisbane and Auckland on a regular basis.

All four regularly scheduled flights to Sydney will continue on to Auckland beginning in September and a fourth flight per week to Brisbane will be added in December.

News Item A-4: Flights using Taichung airport are to be managed more efficiently after a new runway is put into use by the end of next year, the Civil Aeronautics Administration (CAA) said.

(CAA) Deputy Director General, Fang Chih-wen said aircraft would have reduced taxi distances to reach the terminal with the new runway, saving about three minutes.

According to the (CAA), the project is part of a construction plan approved by Executive Yuan in July 2008, according to which two runways are to be built.

Fang said a consulting firm has finished the design of the second runway, adding that the bid for the construction is scheduled to be finalized in October.

Statistics from the (CAA) showed that passenger volume at the airport grew from 1.8 million in 2013 to 2.18 million last year. The number of aircraft using the airport increased from 22,120 in 2013 to 25,277 last year.

Regarding the possibility of moving Taipei International Airport (TPE) (Songshan airport), Fang said the issue could only be discussed after the third runway at Taiwan Taoyuan International Airport becomes operational.

Fang said that Songshan airport serves about 3 million passengers per year, while Taoyuan airport does not have the capacity to absorb that additional volume, if it were to take over Songshan's load while the Taipei facility was being moved.

He said that most of the land in the Songshan area is owned by the military, adding that the airport serves domestic flights arriving from the nation's outlying islands.

All of these stakeholders must sit down and talk about issues related to a possible move, he said.

August 2015: News Item A-1: China Airlines (CHI) has appointed aviation veteran, Chang Yu-Hern as President.

Dr Chang has held several positions in the aviation industry, including Director General of the Institute of Transportation, Ministry of Transportation & Communications, and Chairman of the Aviation Safety Council. “With his extensive professional background in civil aviation, transportation and aviation safety, as well as expertise in aviation policy and management, Dr Chang is well qualified to lead (CHI) in its pursuit of further operational and flight safety improvements.”

News Item A-2: Next month, Taiwan-based airlines are to begin implementing new rules on the in-flight use of portable electronic devices, the Civil Aeronautics Administration (CAA) said.

The (CAA) has amended the Regulations Restricting Use of Different Kinds of Communication Devices or Other Appliances Disrupting Flight to allow passengers to use cellphones or smartphones during take-off or any other time during the flight, as long as they are on "airplane mode."

The move follows widespread passenger complaints about the previous rules that all electronic appliances had to be turned off after the doors to the cockpit were closed.

Under the new rules, if a plane's pilot (FC) gives clearance, passengers can use their portable devices during take-off and landing.

Electronic devices that can be in airplane mode or that can be easily stowed in a cabin seat pocket, are allowed to be used throughout the flight, whether domestic or international.

On international flights, oversized devices such as laptops weighing more than >1kg can be used once the plane has reached cruising altitude of more than >10,000ft/3,048m, but because of concerns about fixed cruising altitudes and different processes, use of laptops and other devices that cannot be easily stowed, will still be barred on domestic flights, the (CAA) said.

If a plane has the appropriate on-board communication facilities, such as Wi-Fi networks, devices that can receive such signals, are also allowed to be used after the on-board systems are turned on, the (CAA) said.

China Airlines (CHI), (EVA) Airlines, Uni Air (MAK), Mandarin Airlines (MDN), and Far Eastern Air Transport (FAT) said they are prepared to implement the changes, as of September.

TransAsia Airways (FSH) said it has already revised its regulations pertaining to usage of electrical devices, but it was still waiting for the (CAA) to approve the changes.

September 2015: News Item A-1: Hundreds of flights to and from Taiwan have been affected due to the approach of Typhoon Dujuan on September 28.

Xiamen Airlines (XIA) announced it had canceled all flights to and from Taiwan on September 28 affected by super Typhoon Dujuan, which landed in Taiwan early in the morning. The involved flights were MF881, MF882, MF883, MF884, MF887, MF888, MF879 and MF880, between Fuzhou, Xiamen, and Taiwan.

It was estimated that flight operations would continue to be disturbed in Fuzhou, Xiamen, and Quanzhou on September 29 as a result of the northwestward moving of Typhoon Dujuan to southeast China's Fujian province.

China Airlines (CHI) announced it was cancelling 20 flights for September 28 and September 29.

China Southern Airlines (GUN), the largest airline in Asia by passengers carried, has planned to cancel 18 flights to and from Taiwan on September 28.

Shandong Airlines (SHG) canceled its flights to Taipei from Jinan and Yantai on September 28.

October 2015: China Airlines (CHI) increased Taipei - Guam to 4x-weekly, on October 25.

China Airlines (CHI) has added another link to Australia and New Zealand with the launch on October 25 of a new 3x-weekly service from Taipei Taoyuan (TPE) to Melbourne (MEL) with onward service to Christchurch (CHC). The 7,395 km route to Melbourne will be operated by (CHI)’s A330-300s and is not served by any other airline. However, the 2,411 km Melbourne to Christchurch sector, on which the airline has traffic rights, is already served by Air New Zealand (ANZ) and Virgin Australia Airlines (VOZ) with daily flights, and by Jetstar Airways (IMU) with six weekly flights. (CHI) already operates a Taipei - Sydney - Christchurch service, as well as serving Brisbane and Auckland. The new service departs Taipei at 22:30 on Tuesdays, Fridays and Sundays, arriving in Melbourne at 11:50 the following day. At 13:10 it then departs Melbourne arriving in Christchurch at 18:30. Lyell Strambi, (CEO), Melbourne Airport welcomed (CHI) President Chang Yu-Hern, who was on the inaugural flight along with a number of the board members, to Melbourne. “Attracting new international services such as (CHI) provides exciting new opportunities for Victoria’s tourism industry, as well as strengthening our business, trade and education connections with Taiwan,” Strambi said. In addition to this new long-haul service, (CHI) also launched new flights from Kaohsiung (KHH) to Fukuoka (FUK) and Kumamoto (KMJ) in Japan. The former will be served 2x-weekly and faces competition from (EVA) Air, while the latter will be served 3x-weekly and faces no competition. Both routes will be operated by the (CHI)’s 737-800s.

November 2015: China Airlines (CHI) has launched its second international service from Tainan (TNN) in Taiwan. On October 28, (CHI) added a 2x-weekly (Wednesdays and Saturdays) service to Osaka Kansai (KIX) using its 737-800s. The 1,938 km route to Japan is not operated by any other carrier. (CHI) already serves Hong Kong with 6x-weekly flights from Tainan. Tainan Airport’s only other scheduled international service is with China Eastern Airlines (CEA) to Wuhan. (CHI) already serves Osaka Kansai from Taipei Taoyuan (with 28x-weekly flights), Kaohsiung (10x-weekly flights) and Taichung (2x-weekly).

January 2016: News Item A-1: "China (PRC) to Conduct Trials of Taiwan Passenger Transfers" by (ATW) Jeremy Torr, January 13, 2016.

The mainland People’s Republic of China (PRC) is to conduct a trial of transfers of international passengers at Taiwanese (ROC) airports.

China’s Taiwan Affairs Office said it will run a limited initial program that will apply to passengers originating from selected mainland destinations, including Chongqing, Kunming and Nanchang. The trial will allow passengers to transfer to secondary international schedules at Taiwan’s Taoyuan International Airport for flights to a 3rd country; until now, the lack of jurisdiction recognition between the 2 countries has made this impossible.

The trial agreement was signed late last year at the 1st-ever meeting of the 2 countries’ heads of state (Chinese Premier Xi Jinping and Taiwan’s President Ma Ying-Jeou) in Singapore.

The China-based "Xinhua" news agency reported that residents of the 3 selected destinations would be allowed to board transit flights in Taiwan with their passports, interline tickets and boarding passes as issued and cleared in mainland China, for a flight to a 3rd country.

A Taiwanese government spokesperson said the trial would “build upon [a] healthy state of affairs” between the 2 countries, and could see the initial 3-city trial extended to further tier-2 mainland cities if the scheme proves viable. If it is, the authorities estimate as many as 500,000 mainland Chinese a year could transit to international connections through Taiwan.

Taiwan-based China Airlines (CHI) and (EVA) Air could immediately benefit from the new arrangement feeding mainland tourists into their hub. Both run established international networks out of Taoyuan International to Australasian, N American, and SE Asian destinations.

News Item A-2: (APG) has been appointed as the general sales agent (GSA) of China Airlines (CHI) in Cyprus and Greece and will be providing full sales and marketing services, as well as call center facilities.

February 2016: News Item A-1: China Airlines (CHI) has become the 2nd carrier in as many weeks to launch flights between Taipei Taoyuan (TPE) and Yangzhou (YTY). (CHI), The SkyTeam (STM) Alliance member began 2x-weekly (Mondays and Fridays) service on the 843 km route on February 1 using its 737-800s. (CHI) began 3x-weekly flights on January 25. This brings to 19 the number of Chinese destinations served by China Airlines (CHI) from its Taipei base. However, of the 19 routes, just 2, Beijing and Shanghai, are served with at least daily flights.

News Item A-2: (GE) Aviation (GEC) has signed a 15-year OnPoint materials support contract with China Airlines (CHI) covering the (CF6-80E)s powering its A330s. (GEC) will supply new parts, component repairs and used serviceable material and will have on-site staff managing material requirements, availability and logistics.

March 2016: China Airlines (CHI), which will take delivery of its 1st Airbus A350 XWB in July, will launch nonstop flights from Taipei to European destinations from December 2016.

The destinations include Amsterdam (4x-weekly), Rome Fiumicino (2x-weekly), and Vienna (3x-weekly). It will also increase Taipei - Frankfurt service to 7x-weekly from June 2016.

In addition, the A350 is expected to strengthen its cooperation with other airlines to reach more key European destinations such as Madrid.

China Airlines (CHI) has 14 A350-900s on order.

Chairman & (CEO) Huang Hsiang Sun said in July (CHI) would take delivery of “4 A350s in 2016, 6 in 2017 and +4 more in 2018.”

(CHI), the SkyTeam (STM) Alliance member said it will provide “the most comprehensive flight network between Taiwan and Europe and an all-new, next-generation flight experience on board the A350.”

China Airlines (CHI) said the A350 offers “a contemporary, next-generation cabin design, which will complement different ambient mood-lighting scenarios. Boarding/takeoff music will create a feeling of exclusive elegance.” (CHI) is also introducing an unconventional feature by creating a unique cabin fragrance for greater brand identity. An on board Sky Bistro will be in a European tavern style.

June 2016: China Airlines (CHI)’s flight attendants (CA) are set to strike on June 24, the 1st airline strike in Taiwanese history, over changes in working conditions.

(CHI), the SkyTeam (STM) Alliance member canceled 8 out of 92 flights for Friday, June 24 affecting 1,590 passengers.

The 92 flights were scheduled to depart from Taipei Songshan Airport, Taoyuan International Airport, Kaohsiung International Airport, and Tainan Airport.

"Reuters" reported China Airlines (CHI) had asked flight attendants (CA) to report to work at the company’s headquarters in Taoyuan, the main international airport and nearly an hour’s drive from Taipei, beginning this month. Flight attendants (CA) said they were previously able to report to work at the local airport in Taipei. The new requirement effectively reduces the rest period for flight attendants (CA) between their flying schedules, according to one union representing the striking workers.

(CHI) said it might combine flights or use other aircraft, and/or make use of code shares.

(CHI) has confirmed the five pilots (FC) and 14 flight attendants (CA) that will be responsible for the presidential chartered plane (head of state) to fly to Panama and Paraguay, scheduled to depart tomorrow, will not be affected by the strike.

(CHI) said it will continue negotiations with the flight attendants (CA) tonight and hopes the dispute can end peacefully. It also called on all flight attendants (CA) to remain calm and be mindful of passenger rights to avoid causing major disturbance to them, according to the statement.

August 2016: News Item A-1: China Airlines (CHI) will lease +6 additional Boeing 737-800s from Singapore-based airplane lessor (BOC) Aviation (SIL).

As of June 30, (CHI) operates 19 Boeing 737-800s out of a total fleet of 107 airplanes. On May 17, (CHI) took delivery of its 10th Boeing 777-300ER, which features a co-branded livery with Boeing (TBC).

(BOC) Aviation (SIL) owns, manages or has on order a fleet of 483 airplanes leased to 64 airlines in 31 countries as of June 30.

News Item A-2: "China Airlines Expecting Delivery of 4 A350 XWBs in 2016" by (ATW) Kurt Hofmann, hofmann.aviation@netway.at, August 26, 2016.

China Airlines (CHI), which was scheduled to take delivery of its 1st Airbus A350 XWB in July, has been informed by that its 1st aircraft delivery should take place in (Q3) 2016. According to (CHI), (EDS) expects to progressively deliver 4 A350s, 1 in (Q3) and 3 in (Q4).

The 1st A350 XWB for (CHI) has rolled out from the cabin furnishing & engine installation at the Airbus final-assembly line in Toulouse, and is ready to proceed to further ground testing. The initial test flight of (CHI)‘s 1st A350 will take place in early September.

(CHI) ordered 14 A350s in December 2007, plus 6 options. (CHI)’s Chairman & (CEO) Hang Hung Sun said in July 2015 that (CHI) would take delivery of “+6 more A350s in 2017, and +4 more in 2018.”

(CHI), the SkyTeam (STM) member said its A350 cabin inherits next-generation style based around creativity, youth and fashion elements. Total capacity is 306 seats in three classes, with 32PC in premium-business class, 31PY in premium economy and 243Y in economy.

Once delivered, the A350 will first be flown on regional routes such as Taoyuan, Taiwan–Hong Kong, following the launch of nonstop flights from Taipei, Taiwan, to European destinations. The A350 should become China Airlines (CHI)‘s mainstay on European routes such as Amsterdam, Vienna and Rome‘s Leonardo da Vinci–Fiumicino Airport.

September 2016: News Item A-1: "(GEE) Boeing 777-200 Certification At Risk"

Global Eagle Entertainment (GEE) said it will be forced to end the trial of its Ku-band in-flight connectivity system on a China Airlines (CHI) Boeing 777-200 unless the (FAA) extends an exemption allowing continued operations of the as-of-yet uncertified system.

The system is installed on a China Airlines (CHI) 777-200 in revenue
service. If approved, the 6-month extension will be the 3rd (GEE) has received for the program, which launched in 2013. (GEE) requested, and received, 1-year extensions in 2014 and 2015. The current extension times out September 26. The company has yet to complete a damage tolerance evaluation of a 4 lb bird hitting the radome, which is mounted on the crown of the fuselage, when the aircraft is flying at or near cruise speed below 8,000 ft. According to (FAA) Part 25 certification regulations, the 777-200 must be “capable of successfully completing a flight during which likely structural damage occurs” as a result of the bird strike. (GEE) said local airworthiness officials in China are “insistent” that this particular (FAA) airworthiness standard is met.

While (GEE) already has certified antenna systems flying on roughly 600 Southwest (SWA) 737s, the company is using the 777 certification to develop an analytical model that can be used to predict the effects of bird strikes (hence the damage-tolerance evaluation
for the 777 and other airplane models). The (FAA) agreed to (GEE)’s
approach in late 2013.

The multiphase approach, which includes a digital simulation validated by multiple tests of actual bird strikes on antennas and
radomes, is largely complete except for a “comparative analysis”
necessary to show compliance with (FAA) rules. "We are currently in the final stages of completion of this validation for the 777 airplane installation,” (GEE) said in its September 6 request to the (FAA). “Due to interpretation of the results generated, it is believed an additional data point/data set is required to complete the analysis package to ensure compliance.”

(GEE) said the 6-month extension would allow it to complete the additional testing and final paperwork. It also said the extension
would not “adversely impact safety,” in part because the radome
is generally blocked by the fuselage during normal operations.
(GEE) said there have never been any documented bird strikes for large fuselage-mounted satellite antenna radomes on Part 25 aircraft in >10 million flight-hours.

John Croft, john.croft@aviationweek.com

News Item A-2: China Airlines (CAL) has taken delivery of its 1st A350-900, becoming the 9th airline to operate the world’s newest twin engine wide body.

After an initial period flying on regional services between Taipei and Hong Kong, the A350-900 will be deployed on long haul flights, starting with Amsterdam, followed by Vienna and Rome.

The A350 XWB features the latest aerodynamic design, carbon fiber fuselage and wings, plus new fuel-efficient Rolls-Royce engines. Together, these latest technologies translate into unrivaled levels of operational efficiency, with a -25% reduction in fuel burn and emissions, and significantly lower maintenance costs. The spaciousness, quietness, beautiful interior and mood lighting in the cabin contribute to superior levels of comfort and well-being, setting new standards for all passengers.

To date, Airbus has recorded a total of 810 firm orders for the A350-XWB from 43 customers worldwide.

October 2016: News Item A-1: China Airlines (CHI) took delivery of its 1st A350-900 (049); the aircraft is configured with 306 seats. It has +13 more A350-900s on order.

News Item A-2: 737-8AL (61772, B-18663), (BOC) Aviation (SIL) leased.
747-409 (28711, B-18203), ferried to Victorville, USA for storage.

November 2016: (KLM) Royal Dutch Airlines and China Airlines (CHI) of Taiwan will expand cooperation effective 2017. From January 9, (CHI) will begin operating 4x-weekly direct services between Taipei and Amsterdam with a new Airbus A350, on Mondays, Wednesdays, Fridays and Saturdays. (KLM) already operates daily, direct, Boeing 777 service between Amsterdam and Taipei, with a tail-end service to Manila, Philippines.

January 2017: The China Airlines (CHI) Group will shift part of the capacity of low-cost carrier (LCC) Tigerair Taiwan (TTW) to charter operations after taking full control of the budget airline this quarter, aiming at improving capacity utilization. The Taiwanese group also plans to integrate (TTW) into its operations and sales organization.

737-8AL (61774, B-18666), ex-(N60668) (BOC) Aviation (SIL) leased.

February 2017: 737-809 (28402, B-18601) last revenue flight 2016-11, returned to (GECAS) (GEF) and re-registered N598BC, ferried Taipei - Greenwood and withdrawn from use. 737-8AL (61777, B-18667) (BOC) Aviation (SIL) leased.

May 2017: China Airlines (CHI) launched its 1st Airbus A350 XWB route to the USA May 14, from Taipei Taoyuan International Airport to San Francisco, California. The 2x-weekly service will be increased to 4x-weekly from June 28, supplementing the existing daily Taipei to San Francisco flights to 11x-weekly services.

(CHI), the Taiwanese SkyTeam (STM) Alliance member has 13 A350-900s on order with 10 of the type to be delivered by the end of this year.
(CHI) expects to have all 18 aircraft in service in 2018.

Starting from August, the A350s will also operate on the Taipei to Vancouver route. (CHI) has code share agreements in place on North America routes with Delta Air Lines (DAL), Hawaiian Airlines (HWI), Virgin America (VUS) and Canada’s WestJet (WJI).

(CHI)’s A350s feature 306 seats in 3 classes, with 32PC in premium-business class, 31PY in premium economy and 243Y in economy. It launched its 1st A350 services to Europe January 9, 2017, from Taipei to Amsterdam and Vienna.

June 2017: China Airlines (CHI) has ended Airbus A340-300 operations after 16 years of flying the aircraft type.

(CHI)’s last A340-300 (B-18806), flew June 26 from Taipei’s Taoyuan Airport to the USA. The flight signified the decommissioning of (CHI)’s A340 fleet. (CHI)’s last scheduled, commercial service flight using an A340-300 occurred May 31 on the Taipei to Hong Kong route.

The A340 was introduced by China Airlines (CHI) in 2001. The aircraft type was mainly used for flying long-haul nonstop routes to Europe, North America and Australia. (CHI) is now operating these routes with A350-900s and Boeing 777-300ERs.

(CHI) has 14 A350-900s on order; 10 of the type will be in (CHI)’s fleet by the end of this year.

July 2017: Boeing (TBC) and China Airlines (CHI) have signed a Memo of Understanding (MOU) to explore the development of (CHI)’s capabilities to serve the growing maintenance, repair and overhaul (MRO) market in Asia. Boeing (TBC) anticipates providing technical support and maintenance training to China Airlines (CHI) to enhance its ability to service (TBC) products. In addition, (TBC) intends to work closely with (CHI) to qualify it as an approved Boeing (TBC) supplier, which will enable (CHI) to bid for work on (TBC)’s wide-ranging products and services.

November 2017: The Satair Group was selected by China Airlines (CHI) to provide Airbus A330-300 and A350-900 material support, including planning, sourcing, purchasing, logistics and inventory management.

Fleet:
(definitions)

Click below for photos:
CHI-737-800
CHI-737-800 WITH WINGLETS-2014-02
CHI-737-809
CHI-737-809 - A
CHI-747
CHI-747 DATA
CHI-747-209B
CHI-747-400 - 2011-12
CHI-747-400 - SKYTEAM LIVERY - 2011-12
CHI-747-400-GE
CHI-747-400F 2012-01
CHI-747-409 LOGOJET - 2013-09
CHI-777-300ER - 2012-12
CHI-777-300ER - At Paris Air Show-2015-06.jpg
CHI-777-300ER-1ST - 2014-08
CHI-A300B4-622
CHI-A330-223
CHI-A330-300 - 2013-12
CHI-A330-300 - 2015-10.jpg
CHI-A330-302
CHI-A330-302 B-18311
CHI-A340-313
CHI-A340-313 - A
CHI-A340-313X 415 B-18805 - 2016-06.jpg
CHI-A350 - 2008-02
CHI-A350-900 - 2016-03.jpg
CHI-A350-900 - Mikado Pheasant-2016-10.jpg

November 2017:

3 737-8AL (CFM56-7B) (61772, B-18663; 61774, B-18666; 61777, B-18667), (BOC) AVIATION (SIL) LSD 2016-10, 2017-01, & 2017-02. 8C, 150Y.

0 737-8Q8 (CFM56-7B26) (768-30636, /01 B-16805), (ILF) LSD, (MDN) WET-LSD 2003-10. RTND. 8C, 150Y.

1 737-8Q8 (CFM56-7B26) (41788, B-18653), (ILF) LSD 2013-06. 8C, 150Y.

1 +1 order 737-800 (CFM56-7B), AVOLON LSD 2014-03. 8C, 150Y.

1 737-800 (CFM56-7B) (61772), (BOC) AVIATION (SIL) LSD 2016-10. 150Y.

3 737-800 (CFM56-7B26), (ILF) LSD:

3 ORDERS (2015-02) 737-800 (CFM56-7B26), (ALE) LSD:

1 737-8FH (CFM56-7B) (39943, B-18657), (SMBC) CAPITAL LSD 2014-06. 8C, 150Y.

10 +2 ORDERS 737-809 (CFM56-7B26) (113-28402, /98 B-18601; 129-29103, /98 B-18603; 130-28404, /98 B-18605; 132-28405, /98 B-18606; 139-29104, /98 B-18607; 141-28406, /98 B-18608; 161-28407, /98 B-18609; 295-29105, /99 B-18610; 302-29106, /99 B-18611; 695-30173, 2000-10, B-18612; 1175-30174, /02 B-18615; 1182-30175, /02 B-18616 W/O SEE INCDT AUGUST 2007). 29103 ST (GEF), LST (PGS). 28402 RF (MDN) 2001-12, WFU 2017-02. 8C, 150Y.

0 747-209B (JT9D-7A) (386-21843, /79 B-18255; 519-22446, /81 B-18753; 556-22447, /82 B-18755). 21843 DESTROYED. 2 RTND (TBC). 22446; 22447; ST (KAC) 2002-10.

0 747-209F (JT9D-7R4G2) (322-21454, /78 B-18751; 462-22299, /80 B-18752; 752-24308, /89 B-18771). 22299 ST (KAC) 2003-09.

0 747-200F (CF6-50E2), EX-(TII), (TLS) 5 YR WET-LSD, 2 RTND.

2 +2/3 ORDERS 747-409 (PW4056) (766-24309, /90 B-18271; 778-24310; /90 B-18272; 869-24311, /91 B-18273; 954-24312, /92 B-18275), EX-TAIWAN (CAA) 2003-12. 24310 ST (TBC) 2009-12. 24311; TO AVION TRADING, CONV TO SF BY (IAI) & LST (ACG) 2009-02. 18F, 93C, 300Y.

1 747-409 (PW4056) (1063-27965, /95 B-18251), 18F, 93C, 300Y.

7 747-409 (PW4056) (1114-28709, /97 B-18201; 1132-28710, /97 B-18202; 1136-28711, /97 B-18203; 1137-28712, /97 B-18205; 1145-29030, /98 B-18206; 1176-29219, /98 B-18207; 1186-29031, /98 B-18208; 1219-29906, /99 B-18209), 28711, PAINTED IN "JIMMY" TITLES 2013-06. 28711 TO VICTORVILLE FOR STORAGE 2016-10. 14F, 64C, 319Y.

3 +1/2 ORDERS 747-409 (CF6-80C2B1F) (1353-33734, B-18210, 2004-02; 1354-33735, B-18211, 2004-12; 33736, B-18212, 2005-03).

19 747-409F (CF6-80C2B1F) (1249-30759, /00 B-18701; 1252-30760, /00 B-18702; 1254-30761, /00 B-18703; 1263-30762, /01 B-18705; 1267-30763, /01 B-18706; 1269-30764, /01 B-18707; 1346-30769, B-18717, 2004-05; 1288-30765, /01 B-18708; 1294-30766, /02 B-18709; 1300-30767, /02 B-18710; 1314-30768, /02 B-18711; 1332-33729, B-18712, 2003-07; 1334-33731, B-18715, 2003-08; 1348-30770, B-18718, 2004-06; 1358-33737, B-18215, 2005-04; 1359-33733, B-18720, 2005-05; 1372-34265, B-18722, 2006-06; 1379-34266, B-18723, 2006-10; 1385-30771, B-18725, 2007-04; 33732, B-18716; 33735, B-18211; 33736, B-18212; 33737, B-18213; 1362-33738, B-18721; 33739, B-18719). 33729 WFU AT VICTORVILLE 2009-01, & LATER TO LOS ANGELES 2009-12. 30761; LST (YTH) 2007-07. 30762; LST (YTH) 2010-09. 30762; RF LST YANGTSE RIVER EXPRESS 2011-11. FREIGHTER.

0 747-47UF (CF6-80C2B5F) (1220-29258, /99 N497MC; 1227-29259, /99 N498MC), (TLS) WET-LSD 1999-08. RTND. FREIGHTER.

10 ORDERS 747-8 Intercontinental:

0 ORDERS 777-200 (PW4000), 6 CANCELED.

6 777-309ER (43978, B-18001, 2015-05), 40C, 62 PY, 256Y.

4 777-36NER (41823, B-18055), (GEF) LSD, 40C, 62PY, 256Y.

0 MD-11 (PW4460) (519-48469, /92 B-18172), EX-TAIWAN (CAA) 2003-12. FOR SALE. WFU AT MOJAVE. 48469 ST (FED) 2004-10. 34C, 270Y.

0 MD-11 (PW4460) (546-48470, B-18151; 558-48471, B-19152) (518-48468, B-18150, RF (MDN) 1999-03; CRASHED AT HONG KONG AUGUST 1999), 48470; 48471; ST (FED) 2001-02. 48472 ST (FED) 2001-07. 48469; WFU AT MOJAVE 2002-10. 34C, 270Y.

0 MD-11 (PW4460) (48458), EX-(WLD), (GAX) 4 YR LSD, ST (FED).

0 A300B4-220 (JT9D-59A) (171; 179; PARTED OUT) ALL SOLD 1999-05 (193; 197; 221; 232), EX-TAIWAN (CAA). 24C, 221Y.

2 A300B4-622R (PW4158) (533, /89 B-18572; 536, /89 B-18573; 666, /92 B-18551; 788, /98 B-18503), 533; 536; 666; 775; ST (AID) 2005-12 FOR CONV TO F, LST (FDN). 20C, 245Y.

0 A300B4-622R (PW4158) (555, /90 B-18579; 625, /92 B-18578), (AWW) LSD 1998-03, RTND. 20C, 245Y.

0 A300B4-622R (PW4158) (677, /92 B-18577; 743, /94 B-18576), (ILF) LSD 1997-06, 677 RTND, LST (API) 2005-07. 743; RTND. 20C, 245Y.

0 A300B4-622R (PW4158) (559, /90 B-18575), EX-(ALB), (AIFS) LSD. RTND. 20C, 245Y.

0 A300B4-622 (PW4158) (767, /96 B-18501; 788, /98 B-18503), TO (AID), LST MAXIMUS AIR CARGO 2007-12. 2OC, 245Y.

2 A320-200 (V2500-A1), (RAE) 3 YR WET-LSD. RTND.

1 A330-201 (607, B-18302, 2004-06).

3 A330-202 (PW4168A) (714, B-18310, 2006-01; 769, B-18312, 2006-07; 1278, B-18357, 2012-01). 18F, 36C, 171Y.

0 A330-223 (PW4168A) (232, /98 PT-MVA; 238, /98 PT-MVB), (TPR) 3 YR WET-LSD 2003-03, RTND. 18F, 36C, 171Y.

2 A330-243 (PW4168A) (732, B-6122; 735, B-6123), 2006-03. 18F, 36C, 171Y.

18 A330-302 (CF6-80) (641, B-18303 2004-12; 671, B-18305, 2005-06; 675, B-18306, 2005-07; 691, B-18307, 2005-09; 699, B-18308, 2005-10; 707, B-18309, 2005-12; 714, B-18310, 2006-01; 725, B-18311, 2006-02; 752, B-18312, 2006-06; 823, B-18315, 2007-03; 838, B-18316, 2007-05; 861, B-18317, 2007-12; 920, B-18353, 2008-05; 1177), (ILF) 8 YR LSD, 752; IN "SKYTEAM" TITLES & COLORS. 3OC, 277Y.

1 A330-302 (1367, N18359),(GEF) ST INTREPID AVIATION (INL) & LST (CHI) 2014-08. 30C, 277Y.

3 A330-302 (1450, B-18360, 2013-12; 1539, B-18361, 2014-06), EX-(F-WWYA & F-WWCP), (GEF) LSD 2013-12 & 2014-07. 36C, 277Y.

0 A340-300 (CFM56-5C4) (528, /03 B-18851), EX-(SIA), (TBC) LSD 2003-09.

0 A340-313X (CFM56-5C4) (373; 378) (402; /01 B-18801; 406, /01 B-18802; 411, /01 B-18803; 415, /01 B-18805; 433, /01 B-18806). 201, B-12387; RF (CAT) 2001-10. (541, B-18807, 2003-07). 8F, 30C, 220Y.

1 +13/6 ORDERS A350-900 (TRENT XWB) (049, /16 B-18901 "MIKADO PHEASANT"), 32PC (CONVERTIBLE TO FULLY LIE-FLAT SEATS), 31 PY, 243Y.

Management:
(definitions)

Click below for photos:
CHI-1-Nuan-Hsuan Ho - 2016-09.jpg
CHI-1-PRESIDENT SUN
CHI-1-SUN HUANG HSIANG - 2014-12
CHI-2-Chang Yu-Hern-R-2015-08.jpg
CHI-DEREK CRIDLAND

NUAN-HSUAN HO, CHAIRMAN.

CHANG YU-HERN, PRESIDENT (2015-08).
Dr Chang has held several positions in the aviation industry, including Director General of the Institute of Transportation, Ministry of Transportation & Communications, and Chairman of the Aviation Safety Council.

YUNG-HSIANG LIU, CHIEF EXECUTIVE OFFICER (CEO) YANGTZE RIVER EXPRESS (YTH) (2006-01).

CAPTAIN YU-SEN CHOU, SENIOR VP FLIGHT OPERATIONS, (TPEOZCI),
(yu-sen_chou@email.china-airlines.com) (2002-09).

DEREK CRIDLAND, SENIOR VP MAINTENANCE & ENGINEERING, EX-(CAT). (2007-10).
Derek was with Cathay Pacific (CAT) for 25 years, and was the (CAT) Engineering Director. He retired from (CAT) in 2006. Derek joined (CHI) as advisor to the Chairman.

ROGER HAN, SENIOR VP FINANCE & CHIEF FINANCIAL OFFICER (CFO).

Y-S LEE, SENIOR VP CARGO MARKETING & SALES.

JAMES YU, SENIOR VP CARGO.

JAMES CHANG, SENIOR VP ADMINISTRATION.

BRIAN CHOU, SENIOR VP MARKETING.

CHUNG-HAN PENG, SENIOR VP MARKETING PLANNING.

PING-HUANG SHIH, SENIOR VP SERVICE.

CAPTAIN YU-CHUNG HSIUNG, VP FLIGHT OPERATIONS (TPEOZCI)
(yu-chung_hsiung@email.china-airlines.com) (2002-09).

CAPTAIN SAMSON YEH, VP SAFETY & SECURITY, (TPEPFCI),
(samson_yeh@email.china-airlines.com).

JOHN YU, FLIGHT SAFETY OFFICER, (TPEUACI),
(yueh-han_yu@email.china-airlines.com).

GENERAL Y L LIN, VP ENGINEERING & MAINTENANCE (E&M) (TPEMZCI),
(yung-lang_lin@email.china-airlines.com) (2000-05).

PETER HUANG, ASSISTANT VP ENGINEERING & MAINTENANCE.

JACK LIU, ASSISTANT VP ENGINEERING & MAINTENANCE.

M LIN, ASSISTANT VP ENGINEERING & MAINTENANCE.

LIANG-CHUNG HAN, VP FINANCE.

NAI-HERNG LIU, VP PASSENGER MARKETING & SALES DIVISION.

K A CHANG, DEPUTY DIRECTOR ENGINEERING & MAINTENANCE.

ANTHONY FONG, CHIEF ENGINEER (TPEMECI),
(chung-han_fong@email.china-airlines.com) (2001-06).

PAIL TAI, GENERAL MANAGER QUALITY ASSURANCE (QA) (2002-12).

C C TING, GENERAL MANAGER SHOP MAINTENANCE (2001-06).

H WANG, GENERAL MANAGER LINE MAINTENANCE (2000-12).

STEVE YUEN, GENERAL MANAGER ENGINE MAINTENANCE (2000-05).

CHICH-LU LEE, GENERAL MANAGER RAMP MAINTENANCE (2001-10).

VINCENT HUANG, GENERAL MANAGER BASE MAINTENANCE (2000-05).

PETER LEE, MAINTENANCE MANAGER (1998-05).

CHARLES YEH, MANAGER ENGINEERING, MAINTENANCE & SUPPLY DIVISION (1999-05).

MIKE WANG, MANAGER PLANNING & DEVELOPMENT.

PAUL FENG, MANAGER CUSTOMER SERVICES.

CHIN-CHEN TSOU, MANAGER AIRPLANE INSPECTION & QUALITY ASSURANCE (QA).

C C LOU, MANAGER GROUND SUPPORT EQUIPMENT (GSE) & FACILITIES (1999-03).

T C TING, MANAGER ENGINEERING MAINTENANCE ADMINISTRATION (1999-03).

F C LIU, MANAGER QUALITY INSPECTION (1999-05).

J S JENG, MANAGER MAINTENANCE ENGINEERING (2000-05).

C M LEE, (CKS) LINE MAINTENANCE MANAGER (2001-01).

CHICH-LU LEE, MANAGER RAMP MAINTENANCE.

C H LO, MANAGER QUALITY CONTROL (QC) (2001-01).

CHEN-KOU SUN, CHIEF AIRCRAFT POWERPLANT SECTION.

T H LAU, CHIEF LINE MAINTENANCE (1999-05).

 
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