Japan Airlines (9201.T) has made its first order for the Boeing 737 MAX, revealing a plan to buy 21 planes to rebuild its narrowbody fleet on Thursday.
According to Reuters, the agreement is worth at least $2.5 billion at list prices, and it pits Boeing against European rival Airbus (AIR.PA), which was in talks with JAL over the new A320neo narrowbody jet.
JAL President Yuji Akasaka informed reporters that the new planes would join the company’s fleet in 2026. According to him, the 737 MAX’s range and fuel efficiency will lower carbon emissions by 15% when compared to the planes it will replace.
“I believe this aircraft has a lot of potential,” Akasaka stated.
Reuters broke the story on Wednesday, citing industry sources.
The JAL contract secures a foothold for the MAX with Japan’s flagship carrier as Boeing attempts to challenge Airbus’ narrowbody market leadership.
“One issue that has hampered the (737 MAX) program is the lack of high-profile users, despite excellent orders. This is quite beneficial “AeroDynamic Advisories aerospace analyst Richard Aboulafia stated.
Although JAL mostly runs Boeing jets, it surprised the aviation industry in 2013 when it chose Airbus’s A350 widebody aircraft over the Boeing 787 Dreamliner, which was trying to correct technical issues at the time.
While JAL’s existing fleet of 48 Dreamliners dwarfs the carrier’s 11 A350s, the original Airbus order aroused concerns about Boeing’s ability to maintain its dominance in the Japanese market.
The 737 MAX disaster heightened those fears, prompting All Nippon Airways (ANA) (9202.T) to postpone concluding an order for 20 MAXs first announced in January 2019. The MAX contract was signed in July by ANA and Boeing.
According to JAL, the Boeing 737-800 now makes up the majority of the carrier’s narrowbody fleet, with the firm owning 47 planes and leasing another 17 737s.
Airbus, on the other hand, has made inroads into Japan’s narrowbody market, with ANA’s low-cost Peach unit flying A320s and JAL’s Jetstar Japan flying leased A320s.
“Keeping Japan is a war,” Aboulafia remarked. “Boeing appears to have won this round.”
