Japan Airline’s $9.5 billion dollar deal

Airbus and Boeing have been battling it out in the commercial market for years. They have had legal fights over government subsidies and other forms of state aid, but their most recent battle was for Japan Airlines’ fleet purchase contract to replace the Boeing 777 jets.

Japan Airlines has been a loyal customer to Boeing for over 50 years, but JAL recently made a deal worth 950 billion yen ($9.5 billion US) to purchase 31 A350 jets. JAL President Yoshiharu Ueki stated that the A350s were selected because they were “the best match for their needs”. With the switch in aircraft manufacturers, JAL pilots will have to undergo additional training to learn how to fly Airbus jets. Even with this cost and risk taken into consideration Ueki expressed that this was the best decision for the company.

Boeing has stated that despite JAL’s deal with Airbus, their relationship still holds strong. Boeing is “disappointed with the selection” but they “will continue to provide the most efficient and innovative products and services that meet longer-term fleet requirements for Japan Airlines”. JAL has said the new A350s will be in service in 2019 and they will replace the Boeing 777 jet’s routes.

References:

“Japan Airlines Chooses Airbus over Boeing for New Jet Order.” CBCnews. CBC/Radio Canada, n.d. Web. 08 Oct. 2013. <http://www.cbc.ca/news/business/japan-airlines-chooses-airbus-over-boeing-for-new-jet-order-1.1928080>.

Picture: http://cdn.poskyarchive.com/777-300/Model%20Packages/Japan%20Airlines%20777-300ER%20-%20Yokoso%20Japan!%20Livery%20JA731J.jpg

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