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Airbus clinches landmark jet order with Japan Airlines


DP Veteran
Oct 21, 2009
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The decision was made in the midst of a government shutdown. I would be dead worried to invest billions in a company whose government shuts down and knocks off global stock markets let alone the mechanically troubled 787 Dreamliner.
(Reuters) - Airbus (EAD.PA) clinched its first jet order from Japan Airlines (9201.T) on Monday, cracking a big national market long dominated by the European firm's main rival, Boeing (BA.N).The U.S. planemaker acknowledged it had paid a penalty for the mechanically troubled debut of its 787 Dreamliner.
The landmark deal for 31 wide-body A350 jets with a combined $9.5 billion list price follows an intense battle between the two manufacturers as JAL and domestic rival ANA Holdings Inc (9202.T) seek dozens of new long-haul jets over the next decade.
The agreement, which is also likely to unsettle a Japanese aerospace industry that builds large portions of Boeing's jets, includes options for another 25 of the A350s.
"This is a huge win for Airbus and a big loss for Boeing," said aerospace analyst Scott Hamilton, managing director of Seattle-based Leeham Co.
Airbus clinches landmark jet order with Japan Airlines | Reuters
This is political? Boeing can't build planes during a government shutdown? Mechanical issues, sure, but shutdown, no issue.
This is political? Boeing can't build planes during a government shutdown? Mechanical issues, sure, but shutdown, no issue.

Yeah, I mean a substantial amount of Boeing's cashflow is from the US government but it's not like the shutdown suddenly makes airliners an unprofitable product.
Over the decades, Japanese companies have come to play an important role as Boeing suppliers, culminating with the 787, 35 percent of whose parts are made in Japan.

The government has provided generous subsidies to the suppliers, helping them to win crucial contracts with Boeing and reducing Boeing’s upfront costs. Japanese companies are responsible for 12 percent of the A350’s production, and now Airbus could offer the Japanese more work to win more sales.

Before Monday’s deal, Boeing and Airbus had competed head-to-head virtually everywhere in the world except for Japan. It is Asia’s second-biggest airline market, and for political reasons since the reconstruction after World War II, it had been all but a captive buyer of American airplanes.

I expect the Japanese airlines were not ordered to buy Boeing this time around, by the Japanese government, and they did so for cost purposes and diversification (increased competition between Boeing and Airbus in the future
Here is another stern one:
"We ask that the United States earnestly takes steps to resolve in a timely way before October 17 the political (issues) around the debt ceiling," Mr Zhu said.

"And prevent a US debt default to ensure safety of Chinese investments in the United States and the global economic recovery."

He added: "This is the United States' responsibility."
China Urges The US To Act Over Shutdown
This has absolutely jack **** to do with the shutdown.
Airbus makes better planes these days, plain and simple.
Based on?

My opinion and a long career in the airline industry.

787 is garbage, the A350 is going to be a great plane, the A380, A330 and A320 series are proven, quality planes. If anything, Airbus has forced Boeing to be competitive.
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