The Boeing Company and Airbus Group Receive Orders Worth $16.6 Billion From ANA Airlines

Boeing and Airbus received orders for 70 planes from Japanese airliner ANA which plans to take advantage of increased traffic to Japan for the 2020 Tokyo Olympics.

Mar 27, 2014 at 11:36AM

Today ANA Holdings, a Japanese airline, announced it has placed an order for 40 aircraft from Boeing (NYSE:BA) and another 30 from Airbus (NASDAQOTH:EADSY) worth a total of $16.6 billion at list prices.


Boeing 787-9 Source: ANA Holdings

Boeing will be receiving the bulk of the revenue from the orders, as the airline announced the 40 widebody airplanes purchased will have a total cost of $13 billion to ANA at list prices. (Some customers with large orders pay less than list prices.) The plans ordered are 20 777-9X, 14 787-9, and six 777-300 extended-range airplanes.

"ANA and Boeing share a long and successful partnership that spans more than five decades," noted Ray Conner, president and CEO of Boeing Commercial Airplanes, in the company's announcement of the order. "ANA helped launch the 787 Dreamliner with Boeing, and we are honored to once again have ANA as an early customer of the 777X family of airplanes. We are very proud that they operate an all-Boeing widebody fleet."

As a result of the new order, ANA will bring its total 787-9 aircraft fleet to 80 planes, which will continue its hold as the world's largest operator of the Dreamliner. In addition the ANA order from Boeing will be used almost exclusively on international routes.


A320BEO Source: ANA Holdings

Airbus will receive the remaining portion of the order, for 30 single-aisle jets, all of which are from the A320 family of planes. These will be used for both domestic and international routes, and will replace existing 737-500 and A320ceo aircraft.

ANA highlighted the reason behind its "record" order from the airlines stems from the increased traffic to Japan as a result of the 2020 Olympics in Tokyo. It hopes to support the Japanese government's efforts to draw in more than 20 million foreign visitors annually.

The aircraft are anticipated to be delivered beginning in 2016 and running through 2027. ANA notes its fleet of planes will increase to 250 once all the planes are delivered. It now has 238 aircraft.

"The aircraft we have selected will enable us to modernize and expand our fleet further as we seek to become one of the world's leading airline groups," said Shinichiro Ito, president and CEO of ANA, in the press release. "These new aircraft will give us maximum flexibility and improved fuel efficiency and will allow us to meet the growth in demand, both internationally and in our domestic Japanese market." 

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