China Airlines’ Plane Orders Reported

China Airlines Co., Taiwan’s biggest carrier, will order as many as 10 Boeing Co. 747 jetliners and up to 12 Airbus A330 aircraft, the Asian Wall Street Journal reported.

China Airlines will pay more than $4 billion for the aircraft, the paper reported, without citing anyone. The report didn’t give delivery dates. Boeing couldn’t confirm whether an agreement has been reached.

“We’ve been having discussions for quite a few months,” said Boeing spokesman Mark Hooper in Hong Kong, adding that 747s were included in the talks. Airbus officials weren’t immediately available for comment.

The orders may make it easier for Boeing, Southern California’s largest private employer, to meet its delivery target of 300 planes in 2003. Losses at airlines worldwide may reach $18 billion in 2002 on lower travel demand and higher insurance costs.

Japan Airlines Co., which will merge with Japan Air System Co. on Wednesday, said last week it would buy two 747-400 freighters, changing an earlier order for five 777-200 planes to two 777-200s and three larger 777-300s.

China Airlines, about 71% owned by a state aviation foundation, said in June it would order new aircraft in the second half of this year to modernize its fleet, replacing aging Airbus A300-600Rs.

China Airlines has had five fatal crashes in the last 11 years. The most recent was in May, when a 747-200 plane broke up in flight, killing all 225 people on board.

Boeing shares fell 5.1% to $34.70 on the New York Stock Exchange on Friday.