Aircraft
China Airlines Hopes To Strengthen MRO with Boeing Pact
Growing Asia-Pacific market a target, but China remains effectively off limits

China Airlines expects its recent memorandum of understanding (MoU) with Boeing to explore opportunities in aircraft MRO will boost its engineering and maintenance prospects in the Asia-Pacific, but continuing political tension between Taiwan and China will keep the region’s biggest market out of reach for the Taiwanese flag carrier. Neverthless, the airline hopes the deal—still in its planning stages—will help boost profit margins beyond the meager .45 percent China Airlines (CAL) registered last year in the face of stiffening competition from mainland Chinese carriers and falling yields.