JAL Picks Airbus and Shoots Down Boeing

By Douglas A. McIntyre Updated Oct 7, 3:22PM EDT · Published Oct 7, 4:43AM EDT

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In the largest single blow to Boeing Co.’s (NYSE: BA) plagued 787 Dreamliner, JAL, which has had trouble with the plane, moved a huge portion of its new plane orders to Airbus. The news bodes poorly for Boeing. The mechanical trouble the 787 has had could spread to the decisions of other large global carriers. The 787 is considered Boeing’s new flagship

Boeing’s shares have held up well, trading at $117, near their 52-week high. But that could change quickly.

JAL announced:

Japan Airlines (JAL) has signed a purchase agreement for 31 A350 XWBs (18 A350-900s and 13 A350-1000s), plus options for a further 25 aircraft. This is JAL’s first ever order for Airbus aircraft. It is also the first order Airbus has received from Japan for the A350 XWB, confirming its continuing success with world leading airlines across the globe. JAL and Airbus aim for entry into service from 2019, with the airline’s A350 XWBs gradually replacing its ageing fleet approximately over a six year period.

“We will utilize the A350 XWB to maximum, which offers high level of operational efficiency and product competitiveness, while positively catering to new business opportunities after slots at airports in Tokyo are increased,” said Yoshiharu Ueki, President of Japan Airlines. “In addition to improving profitability with advanced aircraft, we always aim to deliver unparalleled services to customers with the latest cabin and steady expansion of our route network.”

“Japan Airlines is well known as one of the most preferred airlines in the world providing its passengers with an excellent flight experience. We sincerely welcome Japan Airlines as a new Airbus customer and feel honored by this first ever order from Japan for our all-new A350 XWB,” said Fabrice Bregier, President and CEO of Airbus. “It fills us with pride to see a leading Japanese airline start a new chapter with us. This highlights a very bright and flourishing future for both of us, JAL and Airbus.

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.