TAIPEI (Taiwan News) — EVA Air said it will take delivery of six new Boeing 787 Dreamliners in 2024 and 2025 as a global aircraft shortage is expected to continue for at least three years.
"There is a shortage of materials, a shortage of people, a shortage of engines, and even a shortage of seats," according to Sun Jia-ming (孫嘉明), EVA Airways general manager. He added that EVA Air plans to receive 47 new aircraft before 2032, per CNA.
The global aircraft manufacturing supply chain is recovering slowly from a two to three-year suspension due to the COVID-19 pandemic. With air travel and cargo demand returning, the production of new aircraft has yet to keep pace.
Regarding the world's two largest aircraft manufacturers, Europe's Airbus has recently lowered its delivery outlook because component supply failed to meet demand, while US-based Boeing has also reduced its delivery outlook due to the same supply chain issues.
Boeing troubled by air safety
Boeing has been further affected by aircraft accidents and flight safety investigations. Commercial passenger aircraft deliveries in Q2 2024 increased by 10% quarter-to-quarter but were still down 32.4% compared to the same period in 2023, indicating Boeing's production continues to fall behind expectations.
Industry experts said Boeing has more serious delivery delays than Airbus. Reports of cracks in the 777X test aircraft have increased concern, and the delivery progress of the 737 has been repeatedly delayed.
As for Airbus, it could be affected by Boeing's delivery delays as it fears component suppliers will not be able to achieve sufficient production scale, which could be detrimental to the overall health of the aircraft supply chain and ecosystem.
Sun said that airlines negotiating new aircraft orders with aircraft manufacturers potentially will not see delivery until after 2030. "In the past, when buying a new aircraft, the contract stipulated the month and year for airplane delivery. Now we only talk about the year," said Sun.
Incomplete supply chain
Aerospace Industrial Development Corporation President Ma Wan-june (馬萬鈞) said the aerospace industry chain was originally a solid pyramid with Boeing and Airbus at the top. “Now the stack of suppliers below it is like Swiss cheese, as it is all filled with holes."
Ma said it would be a big challenge to reconnect the supply chain. “If the supplier is changed, it must be re-certified, and the quality and delivery time are more difficult to control.”
As of August, EVA Air has a total operating fleet of 84 aircraft. To offer new routes, EVA will need to acquire new aircraft. The airline also needs new aircraft to replace older aircraft in its fleet.
Sun added that with the delivery of the new Boeing 789 Dreamliner, EVA will offer three cabins (Laurel Class, Premium Class, and Economy Class). EVA will also gradually convert four existing 789 Dreamliners to three cabins.
In addition to orders placed with Boeing, EVA has also ordered 18 Airbus A350-1000s, expected to be introduced from the end of 2026 or the beginning of 2027, and 15 A321 Neo aircraft to be delivered from 2029 onwards.
Higher aircraft cost
Regarding the price increase in the leasing market caused by new aircraft delivery delays, Sun said the leasing market has remained hot, and the price after the lease period increases rather than decreases.
"Because demand has been increasing, everyone is grabbing up planes," said Sun. He gave the example of a shortage of new cars during COVID, making used car prices just as expensive as new cars.
For this reason, EVA Air will also extend the lease of part of its existing fleet in response to changes in the delivery date of new aircraft to meet market demand.
