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Japan Airlines orders 30 Boeing 7E7

Posted 12-23-2004 at 05:29 PM

Source: NY Times

Japan Airlines said Wednesday that it planned to buy as many as 50 Boeing 7E7 Dreamliner jets, a substantial order that will help Boeing maintain its dominant position in Japan, the world's second-largest airplane market after the United States.

Japan Airlines, Asia's largest carrier, said the 7E7 would replace a fleet of 58 medium-size jets beginning in 2008, including 22 made by Boeing's European rival, Airbus. The Japanese carrier said it would initially buy 30 of the planes, with an option for 20 more. The purchase of 30 planes would cost about $4 billion at the jet's list price, though airlines sometimes receive discounts on large orders.

The order buttresses Boeing's efforts to market its first new jet in more than a decade and represents a triumph in its campaign to keep Airbus from grabbing a bigger piece of the promising Asian market. Airbus surpassed Boeing last year to become the world's top maker of commercial aircraft.

Boeing worked hard to make its planes an appealing choice to Japanese carriers by awarding a big share of supplier contracts to Japanese companies. Mitsubishi Heavy Industries, Fuji Heavy Industries and Kawasaki Heavy Industries will all make parts of the plane, including its wings.

Another Japanese carrier, All Nippon Airways, helped Boeing start off the 7E7 in April with an order for 50 of the planes, a deal worth $6 billion at list prices.

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