Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

Japan's ANA orders 15 more Boeing 787 Dreamliners worth $5 billion at list prices

Published 2020-02-25, 03:06 a/m
© Reuters. FILE PHOTO: ANA's Boeing 787 taxis in front of other aircraft at the Tokyo International Airport in Tokyo

By Eric M. Johnson and Tim Kelly

SEATTLE/TOKYO (Reuters) - ANA Holdings Inc (T:9202) said it will buy 15 more Boeing Co (N:BA) 787 Dreamliners worth $5 billion at list prices, the first commercial order announcement for the U.S. planemaker this year as it wrestles with the grounding of the smaller 737 MAX.

The deal, which sees Japan's biggest carrier switch from Rolls-Royce Holdings PLC (L:RR) engines to ones supplied by General Electric (N:GE), is a boost for Boeing after it posted no January orders for the first time in decades.

ANA's order includes 11 787-10 stretch versions and four shorter 787-9s. It also has options for a further five 787-9s. The first delivery will be in the business year beginning April 2022, the airline said in a news release on Tuesday.

ANA was the launch customer for the 787 programme and is the world's biggest operator of the planes. The new additions would bring its purchase total to 98, of which 71 are in service. It operates all three models of the plane, the 787-8, 787-9 and 787-10.

The order is a blow to Rolls-Royce, which has supplied all of ANA's 787 engines so far. Problems with the engines which required extra inspections led the Japanese carrier to cancel hundreds of flights in 2018.

"As the 787 becomes a larger share of our fleet size, we have made the decision to diversify some of the components to minimize single source risks," an ANA spokeswoman said.

Air New Zealand Ltd (NZ:AIR), a Rolls-Royce customer for its initial 787 fleet, last year ordered GE engines for its latest order of eight planes, meaning it will also operate both types in the future.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.