The Japanese aviation market just got a little bit more competitive this week. Traditionally, Boeing (BA) has dominated the Japanese skies; finally after decades of “sworn allegiance” to the U.S. aircraft manufacturing giant, Japan Airlines (JAL) have ordered 31 long-haul jets from the French company Airbus.

-Airbus Chief Executive, Fabrice Bergier, announcing the agreement.

Airbus Lands a Punch on Boeing With First Japan Deal- http://www.businessweek.com/articles/2013-10-07/airbus-lands-a-punch-on-boeing-with-first-japan-deal

After Boeing’s newest offering, the 787 Dreamliner, was sufficiently delayed due to safety and technical issues, JAL has decided to spend their money elsewhere. With the A350 being Boeing’s direct competitor, JAL opted for Airbus’ product. This is a huge agreement made between the two companies, financially, and is an expansion for Airbus who has entered a market controlled by Boeing. In terms of financials, the cost of the 31 planes is roughly $9.5 billion.

Airbus and Japan Airlines agree landmark $9.5bn deal – http://www.bbc.co.uk/news/business-24424873

Having switched allegiances, whatever bonuses JAL had in place with Boeing are certainly forgone. But for what they lost in terms of loyalty bonuses, they gained in negotiating and buying power.

How Japan Airlines Flexed Its Negotiating Muscles-http://www.businessweek.com/articles/2013-10-07/how-japan-air-lines-flexed-its-negotiating-muscles#r=hpt-lst