Japan Airlines has announced on Monday a deal with Airbus worth $9.5bn. JAL has a fleet of 159 airplanes which are 70% Boeing. This new order for 31 Airbus A350 XWBs, shows a significant change in strategy for JAL. They are appearing to move from a predominantly single fleet strategy to a multi fleet strategy.

Airbus has been appearing to enter the Asian market in full force. Its main competitor Boeing has been the principal supplier of jets in Asia, however recent deals that Airbus made with two Chinese companies, a Vietnamese carrier and a Singaporean lesser have amounted to $13bn.

During the past couple of months Boeing has been hit by serious setbacks. It first started when it’s newly lunched plane the Dreamliner 787 had problems with its onboard batteries, now it’s new rival the A350, has better fuel economy and seems to be taking Boeings market share rapidly.

Could this deal signify the demise of Boeing’s supremacy in the Asian market? According to recent studies, no. “Asia is expected to become the biggest source of jet orders over the next 20 years.”[1]

According to Chris De Lavgon, aviation analyst,  the JAL contract  “Is a big win for Airbus. This was the final frontier for them and they have conquered it.”[2]

Current Airbus Stock Price

Stock Price of Boeing, Airbus’s main competitor

Source 1:   http://rt.com/business/airbus-japan-airlines-deal-828/
Source 2:  http://www.bbc.co.uk/news/business-24424873
Source 3:  http://www.nytimes.com/2013/10/08/business/international/jal-orders-9-5-billion-worth-of-airbus-jets.html