TOKYO--European aircraft giant Airbus is looking to nearly
double its share of the Japanese market by 2020, hoping to build
momentum after winning a landmark order with Japan Airlines Co.
(9201.TO) earlier this month.
During a speech at a business forum in Tokyo, Airbus CEO Fabrice
Bregier said he hopes to get a 25% share of the Japanese market by
2020, and ultimately, half over the next 20-25 years, up from 13%
currently.
"We will grow our market share" by bolstering sales of jets such
as the A350 and other aircraft for low-cost carriers, Mr. Bregier
said.
Earlier this month, JAL placed an order with unit of European
Aeronautic Defence & Space Co. (EAD.FR) for 31 long-range
Airbus A350 jets at price of Y950 billion ($9.75 billion), with an
option to buy 25 more.
The move was seen by some in the industry as the possible
beginning of the end of Boeing Co.'s (BA) dominance in the Japanese
market.
JAL's fleet is about 80% Boeing-made, with the only non-Boeing
aircraft smaller planes mainly for regional flights. Airbus
accounts for about 7% of the fleet of Japan's other big carrier,
All Nippon Airways.
Analysts expect JAL's decision to increase pressure on Boeing to
keep ANA Holdings Inc. (9202.TO), the parent of All Nippon Airways,
from also switching to Airbus.
The deal came after battery problems on two Boeing 787 planes --
one each operated by JAL and ANA -- prompted the global grounding
of Boeing's flagship aircraft earlier this year. That raised
questions about the heavy dependence of two Japanese carriers on a
single supplier.
It was a "normal" decision for JAL to buy Airbus aircraft, Mr.
Bregier said.
Airbus is also looking to expand its relationships with Japanese
parts makers, hoping to use more of their parts in future, he
said.
Write to Yoshio Takahashi at yoshio.takahashi@wsj.com
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