ANA Close to Decision on 25 Airbus, Boeing Aircraft Order

ANA Holdings Inc. (9202), the Japanese carrier whose fleet is dominated by Boeing Co. (BA) aircraft, will decide soon on placing an order for 25 jets, pitting the newest wide-body models of Airbus SAS and Boeing against each other.

“It’s getting close to the time we need to make a decision,” President Shinichiro Ito said an interview in Tokyo, where Japan’s biggest airline is based. He declined to elaborate on when the order will be made. “The key will be what plane matches our needs best.”

ANA choosing Airbus would mark a triumph for the European manufacturer in a country where Boeing has enjoyed near monopoly for decades. The ties between the U.S. planemaker and Japanese carriers were reinforced as ANA and Japan Airlines Co. (9201) became the first operators of the carbon-composite Boeing 787 Dreamliner, when commercial flights started two years back.

The new planes ANA will order are to replace aging wide-body aircraft, used in international flights, Ito said in the Sept. 4 interview. ANA, the biggest operator of Airbus planes in the country with 17 aircraft, will decide between the yet-to-be-made 777X model and Airbus A350.

Boeing is marketing the 777X as a successor to its 777 jet and Chief Executive Officer James McNerney has said the planemaker expects to have the aircraft in service around the end of the decade.

Photographer: Yuriko Nakao/Bloomberg

Shinichiro Ito, president and chief executive officer of ANA Holdings Inc. (ANA), speaks during an interview in Tokyo on Sept. 4, 2013. Close

Shinichiro Ito, president and chief executive officer of ANA Holdings Inc. (ANA),... Read More

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Photographer: Yuriko Nakao/Bloomberg

Shinichiro Ito, president and chief executive officer of ANA Holdings Inc. (ANA), speaks during an interview in Tokyo on Sept. 4, 2013.

A350 First Flight

Airbus’s A350 had its maiden flight earlier this year and the first variant is set to enter service by in 2014, with the largest model slated for late 2017. The planemaker has said the A350-1000 will offer 25 percent better operating economics than Boeing’s 777-300ER.

Toulouse, France-based Airbus has been gaining market share in Japan recently as low-cost carriers lease its planes. The aircraft maker has yet to sell wide-body jets to either ANA or Japan Airlines.

ANA operates 17 Airbus single-aisle A320s, which the Japanese carrier started flying in 1991. The airline has a fleet of 236 planes, with 197 of them being Boeing aircraft.

Japan Airlines, which has never bought a new Airbus plane, has a fleet of 214 aircraft.

Japanese carriers flew 43 Airbus jets at the end of 2012, up from 36 a year earlier, according to the Japan Aircraft Development Corp. ANA and its affiliate Peach Aviation Ltd. are the main carriers using the European planemaker’s aircraft. In comparison, domestic carriers had 409 Boeing planes, excluding MD-90s, up from 397.

Skymark Airlines Inc. (9204), Japan’s biggest discount carrier, is currently the only Japanese airline that has agreed to buy Airbus wide-body planes, with an order for six A380s. The airline is due to start operation of its first double-decker next year.

Photographer: Tomohiro Ohsumi/Bloomberg

A Boeing Co. 787 Dreamliner aircraft operated by All Nippon Airways Co. (ANA), rear, is parked as other ANA aircraft taxies at Haneda Airport in Tokyo. Close

A Boeing Co. 787 Dreamliner aircraft operated by All Nippon Airways Co. (ANA), rear, is... Read More

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Photographer: Tomohiro Ohsumi/Bloomberg

A Boeing Co. 787 Dreamliner aircraft operated by All Nippon Airways Co. (ANA), rear, is parked as other ANA aircraft taxies at Haneda Airport in Tokyo.

Airbus is in discussions with Japan’s two biggest carriers about an order for its A350-1000, three people familiar with the talks said in May.

To contact the reporters on this story: Chris Cooper in Tokyo at ccooper1@bloomberg.net; Kiyotaka Matsuda in Tokyo at kmatsuda@bloomberg.net

To contact the editor responsible for this story: Anand Krishnamoorthy at anandk@bloomberg.net

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