(Reuters) – Japan Airlines on Thursday announced a plan to buy 21 Boeing 737 MAX planes to replenish its fleet of narrow-body jets, its first-ever order for the model.
The deal is believed to be worth at least $2.5 billion (2.3 billion euros) at list price, Reuters previously reported, and marks a win for Boeing over European rival Airbus, which was in talks with JAL on the A320neo, the best-selling narrow-body aircraft.
JAL Chairman Yuji Akasaka told reporters that the company intends to integrate the new planes into its fleet starting in 2026. The 737 MAX’s range and fuel efficiency will reduce emissions from carbon by 15% compared to the planes they replace, he said.
Reuters reported details of the deal on Wednesday, citing industry sources.
JAL’s order sees the MAX model gain a foothold in Japan’s flagship company as Boeing strives to overtake Airbus’ lead in the narrow-body aircraft market.
“One of the issues that has hampered the 737 MAX is that, despite strong orders, there hasn’t been as much adoption at the leading companies,” said Richard Aboulafia, aerospace analyst at AeroDynamic Advisories.
However, Airbus has been gaining ground in the Japanese narrow-body aircraft market, with All Nippon Airways (ANA) low-cost unit Peach operating A320s as well as JAL’s Jetstar Japan using leased A320s.
“It’s a battle to keep Japan,” said Richard Aboulafia. Boeing “seems to have scored a victory here”.
(Reporting Valerie Insinna in Washington, Rocky Swift and Maki Shiraki in Tokyo; Nathan Vifflin, editing by Kate Entringer)
Copyright © 2023 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
