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Aircraft manufacturing giant Airbus has announced its first deal with Japanese carrier Japan Airlines.
"This is Airbus' largest order for the A350 so far this year and is the largest ever order we have received from a Japanese airline," said Fabrice Bregier, chief executive of Airbus.
Stung by all the problems with its new 787 Dreamliner over the past decade, Boeing waited too long to start updating its larger 777 jets, giving Airbus an opening to break into the Japanese market that Boeing had dominated for decades, aviation analysts said Monday. According to the deal, Japan Airlines also has an option to purchase an additional 25 planes.
In recent years, the aviation industry has been hurt by a slowdown in demand and high volatility in global fuel prices. That has seen many leading carriers turn to more fuel-efficient aircraft in an attempt to cut down costs and maintain profitability. Both Airbus and Boeing have seen a surge in demand for such planes- and it looks like Airbus is starting to win the battle.
Airbus also shows its readiness to move in on Boeing's turf in the Japanese aerospace manufacturing industry, including cooperation in research and development. It is clear that the recent acquisition is due to a profound expansion of Japan Airlines- indicating that the country is experiencing extremely high growth rates with regards to business imports and exports. This is not only positive for Japans’ economy, but shows that if Airbus continue to win Japan Airlines’ business they will be at a significant competitive advantage compared to Boeing due to uneven supply and demand.
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