Aviation360 MEA

With an order for 21 of its 737 MAX aircraft from the country’s flag carrier, Boeing was able to defeat rival Airbus, which was once thought to be the front-runner in Japan.

According to a statement released jointly on Thursday by Japan Airlines and Boeing, the single-aisle aircraft will be delivered to the airline and begin service in 2026. Based on the appraiser Avitas’ estimated list price of $51.3 million for each aircraft, the deal is worth around $1 billion.

The aircraft will replace JAL’s Boeing 737-800s, which make up the majority of the carrier’s fleet, according to the statement from its president, Yuji Akasaka. This month, Bloomberg News reported that JAL was moving toward a partnership with Boeing to replace its outdated fleet with more modern, fuel-efficient aircraft. The A320neo from Airbus was a possibility.

“The 737 MAX series had a good track record, and it was familiar to us since we’re already operating the 737-800,” Akasaka said at a briefing Thursday. “That’s why we chose it over other candidates, including the A320neo.”

“The integration of the new 737 MAX will provide JAL with greater efficiency across its short-haul network,” Boeing Chief Executive Officer Stan Deal said in the statement.

When admission regulations, which were stricter than others in Asia, were relaxed in the latter part of last year, Japanese tourism is now rebounding from the pandemic.

According to forecasts from the International Civil Aviation Organization, demand for air travel will reach pre-pandemic levels by the end of March and surpass 2019 levels by 3% by the end of the year.

The main rival of JAL, ANA Holdings, agreed to buy up to 20 MAX 8 aircraft from Boeing last year, with an option to buy an additional 10 aircraft.

After crashes in Indonesia and Ethiopia that claimed the lives of everyone on board both aircraft, the MAX was grounded globally in 2019. After making technical changes and other safety measures, Japan removed its ban two years later.

“Early issues with the 737 MAX have been identified and resolved,” Akasaka said. “It’s an incredibly safe plane and we’ve done everything possible to make sure of that.”

In February, Boeing shipped 28 brand-new airplanes to customers, compared to Airbus’s 46.