China Air intends to buy 14-20 A350 jets

Taipei, Taiwan -- China Airlines Ltd. said it signed a letter of intent with France's Airbus SAS to buy 14 wide-body A350 planes designed to rival Boeing Co.'s 787 Dreamliner.

The Taiwan carrier said it also signed an option for an additional six aircraft.

The deal was valued at $4.2 billion if all options are exercised, Air Transport World reported. Neither the airline nor Airbus disclosed the actual price. At list prices, the 20 jets would cost $4.6 billion.

The A350-900s will be powered by Rolls-Royce PLC's new-version Trent 1883 engines. Rolls placed the engine-deal value at $800 million if all options are exercised.

The planes, to be delivered from 2015 to 2020, will replace China Airlines' A340-300 fleet and be used mainly on routes to Europe, Australia and the United States, expanding its mid- and long-haul capacity, the airline said.

The first A350s are scheduled to enter service in 2013. Chicago's Boeing said Tuesday it would deliver its first 787 by the end of next year.

Airbus, a unit of European Aeronautic Defense & Space Co., said in November it had 286 A350 planes on order. Boeing said in November it had 739 Dreamliners on order.

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Copyright 2007 by United Press International.