Japan Airlines is buying its first-ever jets from Airbus in a deal with a list value of 950 billion yen ($9.5 billion US). The purchase of 31 A350 planes deals a blow to U.S. rival Boeing, which had been JAL’s star supplier for decades.(Source: Bob Edme/Associated Press)
Why does Japan Airlines choose Airbus over Boeing? —- “best match for our needs.”
Boeing and Airbus have waged a slugfest in airline market all over the world for years. The commercial battle also leads to a years-long legal fight at the World Trade Organization between the two plane makers over government subsidies or other forms of state aid.Recently,the battle has paid attention to sales of the new style jets ——long-range, wide-bodied jets.During the severe competition, Monday’s order demonstrates Airbus A350 holds a safe lead against Boeing’s 787.
Behind the domination of Chicago-based Boeing Co. are the historical ties between Japan and the U.S., including security arrangements. But in recent years, other Japanese carriers, especially the newer low-cost airlines, have been gradually switching to Airbus.Boeing said Monday’s deal did not hurt its relationship with JAL.(Source:http://www.cbc.ca/news/business/japan-airlines-chooses-airbus-over-boeing-for-new-jet-order-1.1928080)
Taken security and economy into consideration, Airbus A350 is a more adorable choice for JAL.Japan is a small country with a dense population.There are a certain number of airports and the routes are busiest in the world, in which case,Airbus A350 get a chance to enter Japan’s airline market. However, Boeing has accounted for more than 80 percent in Japan’s airline market, which means it is still a severe challenge for Airbus to dominate the market.