Boeing goes on the defensive following JAL $9.5bn Airbus order

Is Boeing willing to "do anything" to seal a deal to replace ANA Holdings' ageing fleet?

Following the loss of a multi-billion dollar deal between the carrier and Japan Airlines, Boeing has gone on the defensive to make sure it does not lose a similar contract with Japanese airline All Nipon Airways (ANA).

Anonymous sources told the Reuters news agency that after losing out to rival firm Airbus to replace the ageing fleet at Japan Airlines (JAL), Boeing is keen to secure an order from Japan's other major airline.

In a deal announced Monday , JAL said it has ordered 31 Airbus A350 jets from Airbus, Boeing's closest rival, in a deal worth $9.5 billion.

The order is important as it demonstrates Boeing's lost ground in the commercial jet industry, already under pressure due to the delays and safety worries caused by the 787 Dreamliner this year. However, to stop the loss of any more lucrative orders, Boeing executives are now under pressure to "do anything they can" to win a deal with ANA Holdings, which needs to replace its long-haul Boeing 777s.

ANA is considering both the Airbus A350 and updated Boeing 777X.

Sources told the agency that a potential deal with ANA, after the JAL setback, is now a "can't lose at any cost" scenario for the aircraft manufacturer. However, the Airbus A350 is due to begin service in 2015, while the 777X is not expected to fly before 2020 -- a factor which may give Airbus an advantage.

ANA said it may make a decision as early as next year, and CEO Shinichiro Ito said last month that the risk of delays would factor in the choice.

Via: Skift

Image credit: Boeing

This post was originally published on Smartplanet.com

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