ANA finalises $16.5 bln deal for Airbus, Boeing planes

Reuters

(Adds details on Airbus order)

By Siva Govindasamy

SINGAPORE, July 31 (Reuters) - Japan's All Nippon Airways said on Thursday that it has finalised $16.5 billion worth of orders for Airbus and Boeing aircraft.

The airline firmed up a deal for 40 Boeing wide body jets, including 20 Boeing 777-9X, 14 Boeing 787-9 and six Boeing 777-300ER aircraft, worth $13 billion at list prices.

It also confirmed a deal for seven Airbus A320neo and 23 A321neo single-aisle jets worth $3.49 billion.

These orders, initally placed in March, are part of the Japanese carrier's efforts to further modernise and expand its fleet well into the next decade.

ANA's commitment to Boeing wide body aircraft was significant as rival Japan Airlines in October last year ordered 31 Airbus A350 wide body aircraft worth $9.5 billion at list prices.

That was JAL's first order for Airbus aircraft, and the European aircraft manufacturer was hoping to lure ANA away from Boeing in a country where airlines have traditionally leaned towards the U.S. planemaker, especially in the wide body market.

ANA ultimately opted to stay with Boeing for the more lucrative wide body portion of its order and stuck with Airbus aircraft for its narrow body fleet that it uses on many of its domestic services.

While ANA officials have consistently said their main concern was to get the best aircraft for their requirements, their airline's decision was also closely monitored as a barometer of U.S.-Japan trade and political relations.

Japanese companies like Mitsubishi Heavy Industries , Kawasaki Heavy Industries and Fuji Heavy Industries are important suppliers to Boeing, especially for its 787 Dreamliner programme.

Some industry sources had suggested that their workshare for the 777x programme could have decreased if ANA had gone for Airbus jets instead.

In June, however, Boeing said Japanese companies would build 21 percent in the 777x - on par with their share of the work in the current model of the 777.

This includes the fuselage sections, bulkheads, landing gear and centre wing sections.

Boeing has 300 orders and commitments from six customers for the 777X, which is due to enter into service around the end of the decade.

This includes Hong Kong's Cathay Pacific, Germany's Lufthansa and Gulf carriers Emirates , Etihad Airways and Qatar Airways. Others like Singapore Airlines are also considering the aircraft.

(Reporting by Siva Govindasamy; Editing by Ryan Woo)

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