All Nippon Splits $16.6 Billion Order Between Boeing and Airbus

All Nippon Airways 747

Once again, Airbus has made a major aircraft sale in Japan. Major by its scope and major because, in a business repeat, Airbus has found a way with Japanese carriers. Last week, All Nippon Airways said it would divide up a $16.6 billion order between Airbus and Boeing.

In the past, Boeing aircraft have been singularly dominant with Japanese carriers, providing all their scaffolding. Even this latest order breaks down to 80 percent of the value going to Boeing, including 40 of the aircraft makers wide-body planes — 20 777-9X, 14 787-9 and six 777-300ER – to be delivered between 2017 and 2027.

For Airbus salespeople, Japanese carriers were like tuning in a distant radio station late at night, nothing, nothing and now loud chattering.

Airbus orders from All Nippon were mostly for aircraft smaller than the wide-body jets being supplied by Boeing. Nonetheless, All Nippon ordered 23 Airbus A321neos and seven A320neos.

The 787-9 is a longer version of the Dreamliner. All Nippon operates more Dreamliners than any other airline. They even bought the floor model as the launch customer. It’s interesting that they’re staying with aircraft that was grounded for four months last year because of battery issues.

The aggregate sale price of $16.6 billion reflects list prices. All Nippon said that competition between the two airline builders allowed them deep discounts.

“Both aircraft makers were very aggressive in their sales pitches,” All Nippon’s president, Shinichiro Ito, told The New York Times. “That helped us secure even better conditions.”

The new aircraft from Boeing and Airbus brings the All Nippon fleet to 250 planes.

The Tarmac’s View: Any entry into Japan is celebrated by Airbus. Japanese commercial aviation and Boeing has been a love story that started after World War II and never ended. But last year, Japan Airlines rocked Boeing’s world when, for their first Airbus order, JAL wanted $9.5 billion in A350 wide-body jets, the competitor to the 777-9X. And the Airbus Neo models are outselling Boeing’s single-aisle jets like the 737 MAX.

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