Airbus Wins First Order From Japan Air in Blow to Boeing

[Sen. Walter Sobchak]

Source: Bloomberg

Airbus SAS (EAD) won its first order from Japan Airlines Co. (9201), securing a commitment for as many as 56 wide-body planes in a market that Boeing Co. (BA) has almost monopolized for decades.

The order consists of 18 A350-900 aircraft and 13 larger A350-1000s, Airbus Chief Executive Officer Fabrice Bregier said on a conference call today. The firm commitment has a value of $9.5 billion at list price, while customers typically secure rebates. Japan Air has an option to purchase 25 more.

Airbus’s biggest A350 order so far this year gives the European manufacturer a break into Japan, where the fleets of ANA Holdings Inc. (9202) and Japan Air, the country’s two biggest carriers, are dominated by Boeing. Japan Air choosing Airbus comes after the Boeing 787 Dreamliner was delayed by years and grounded globally early in 2013 after battery malfunctions.

Read more: http://www.bloomberg.com/news/2013-10-07/airbus-wins-first-order-from-japan-air-in-blow-to-boeing.html

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JAL didn't actually order them but they inherited a large fleet of Airbus A300's from their merger with JAS.

[davidpdx]

1. So it was the company they merged with that had placed the order

or existing jets that inherited?

[Sen. Walter Sobchak]

2. The A300's were originally ordered by JAS, this is JAL's first independent order.

So it isn't as though Airbus is new to them, they were just traditionally a Boeing partisan and this is a major vote of non-confidence in Boeing.

[davidpdx]

3. Ok, thanks

So do most airlines heavily favor one or the other?

[Sen. Walter Sobchak]

4. Not really, but Japan is different

Japanese airlines were strongly, strongly encouraged to buy Boeing or historically McDonnell Douglas in the name of mitigating the trade surplus for good political will in the US. But Airbus is opening such a lead over Boeing that trying to hold the line on that is just impractical.

Boeing has outsourced itself to the point the company has just ceased to function and the performance of their outsourcing partners is generally dreadful.

[Blue_Tires]

8. There was also a lot of pressure because Boeing sent a LOT of jobs over there

to grease the skids with the Japanese gov't (ironically, the lithium-ion batteries that were constantly in the news earlier this year are Japanese-made)....At least Boeing might get a clue after this fiasco and bring those jobs back to the USA...

[Sen. Walter Sobchak]

9. These companies really don't care, the 787 has been a disaster for them.

Historically the Japanese government would provide financing for Japanese airlines buying US built aircraft but that was back in the 70's and 80's. Nobody has really been flipping shit about the US/Japan balance of trade in recent years.

[dipsydoodle]

5. Airbus and Japan Airlines agree landmark $9.5bn deal

Aircraft manufacturing giant Airbus has announced its first deal with Japanese carrier Japan Airlines (JAL).

It has won an order from JAL for 31 of its A350 planes, in a deal worth nearly $9.5bn (£5.9bn) at list prices.

The A350 is designed to be more fuel-efficient and is a direct competitor to US rival Boeing's 787 Dreamliner, which has been hit by safety and technical issues in recent months.

The deal is a blow for Boeing, which has dominated Japan's aviation market.

http://www.bbc.co.uk/news/business-24424873

[Aviation Pro]

6. Interesting since they ordered a number of 788s

And invested heavily in the 73-NG.

[Blue_Tires]

7. Also interesting given that Boeing outsourced a large chunk of 787 assembly to Japan

so much for quid pro quo....