China Airline's board has approved a major fleet acquisition, with the airline now set to acquire up to 16 widebody aircraft from Airbus and Boeing.
In a stock exchange filing from last week, the airline said the transaction would not exceed $7.85bn for the 16 aircraft.
The aircraft include five Airbus A350-1000s, five Boeing 777-9s, four 777-8F freighters, and two 777F freighters.
China Airlines said the order will support its fleet replacement programme and will enhance its operational efficiency.
The airline approved an investment plan to acquire the two 777F freighters in a separate notice. The purchase price will not exceed $876 million, or the leasehold-asset value will not exceed $468 million, depending on the transaction's structure.
Funding for this transaction will be from internal resources and bank financing, according to the filing.
In another filing submitted on the same day, China Airlines agreed to acquire one Rolls-Royce XWB-97 spare engine and three GE9X spare engines, valued up at up to $228.8 million in total.
Additionally, the airline will retire four of its aging 747-400F freighters. Two will be sold to Cargolux Airlines for around $40 million, with an estimated disposal gain of around $26 million. The remaining two aircraft are still under negotiation.