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China Airlines orders 22 planes
TAIPEI, Taiwan -- China Airlines, Taiwan's largest carrier, has agreed to buy a total of 22 planes from Boeing and Airbus worth about $3.6 billion. Airbus Industries said on Tuesday that China Airlines had ordered 12 A330 aircraft, and another six on options. Airbus and China Airlines did not place a value on the order but a top of the range A330 costs $132 million, based on list prices. Its rival Boeing -- the world's No. 1 plane maker -- also won an order from China Airlines for 10 of its 747-400 aircraft valued at about $2 billion. Boeing said the order was its largest this year for the 747-400, the first of which will be delivered in July 2003. Airbus and Boeing have been targeting low-cost and Asian airlines with sales this year as passenger travel soared in both markets. Asia has seen growth of 2 percent, while traffic in Europe and the United States has declined following the September 11 terror attacks and global economic malaise. China Airlines said it was had ordered the 22 planes to replace its ageing fleet. The state-controlled airline has been under intense pressure to buy American after media reports said it was going to buy aircraft from Airbus. But Taiwan needs U.S. support to defend it from China, which lays claim to the province. Boeing expects Airbus to take half the global airplane market, threatening its position as the world's biggest jet plane manufacturer. Airbus recently beat Boeing in a hotly contested deal worth $3 billion to supply Europe's biggest no-frills airline EasyJet with 120 jets. Boeing is now targeting India, which is estimated to require 290 new jets worth $20 billion over the next 20 years to meet growing demand.
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