Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
ANA fleet of planes/AFP

Finance

ANA undecided after Airbus unveils Japan ambitions

ANA fleet of planes/AFP

ANA fleet of planes/AFP

TOKYO, Oct 22 – All Nippon Airways (ANA) said Tuesday the composition of its fleet was under discussion after plane-maker Airbus announced its intent to scoop up half the Japanese market.

The European manufacturer is riding high after bagging a landmark $9.5 billion order from Japan Airlines (JAL) earlier this month, and wasted no time in setting out its aims in a country that has traditionally been a Boeing stronghold.

Airbus has a 13 percent share of the Japanese market and that figure will almost double to 25 percent by 2020, thanks to orders already in hand. Further down the road it wants to be the maker of one of every two planes in operation in Japan.

“We are going to raise our market share in Japan,” Airbus chief Fabrice Bregier told a business forum in Tokyo on Monday, adding that he wanted to boost that figure to “as close to 50 percent as possible”.

JAL’s announcement two weeks ago that it had agreed to buy 31 airplanes from Airbus set the aviation industry buzzing with speculation that its competitor may follow suit. Bregier has said he would welcome business with ANA.

An industry source told AFP earlier this month that ANA, which is known to be looking at aircraft to replace part of its fleet of Boeing 777, was expected to order around 30 new planes within six months.

The source said Airbus and Boeing were going head-to-head to win this order.

On Tuesday, a spokesman for ANA, whose hangars are filled with Boeing-made planes, said there had been no decision as yet.

“As we are currently studying planes for our fleet, we have no firm plan at the moment,” he said.

Bregier has acknowledged the lofty goal to grab a big part of Boeing’s business — in place since Japan’s post-WWII reconstruction — would take time.

Advertisement. Scroll to continue reading.

“For many years we asked why our market share in Japan was so low,” he said, adding that “people thought we would never sell aircraft to JAL and in fact we had always failed until now”.

Japan’s two big carriers have been badly hit by the well-publicised problems with Boeing’s troubled Dreamliner.

The lightweight plane — hailed for its fuel-efficiency but marred by years of production delays — was grounded globally in January after lithium-ion batteries overheated on two different planes, with one of them catching fire while parked.

The Japanese airlines, which are the single biggest operators of the Dreamliner, have put their fleets back into service. But they are seeking compensation from Boeing for a string of problems which forced them to cancel hundreds of flights and dented their bottom line.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...