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Tuesday, 23 July, 2002, 11:47 GMT 12:47 UK
Japanese airline drops Airbus
ANA Boeing 777
ANA's fleet will be all Boeing
Japan's second largest carrier, All Nippon Airways (ANA), has ordered 14 new Boeing planes, to replace the Airbus planes in its fleet.

The deal means ANA will become a pure Boeing airline, which would cut its costs by eliminating duplication in service, maintenance and operation.

Five Boeing 777-300 and nine 767-300 ER would cost ANA about $1.45bn and be delivered by March 2007.

The order was made during the Farnborough Air Show where manufacturers Boeing and Airbus have witnessed a dramatic drop in orders due to the global economic slowdown and 11 September.

The only other significant orders placed at the show were by Dutch carrier KLM for six Airbus and two Boeing planes, with a list price of $700m for both manufacturers.

Cutting costs

ANA has a fleet of 141 aircraft, including seven A321-100 and twenty-five A320-200, a number of which are leased or jointly owned.

Switching to an all Boeing fleet would save the airline about $86m in costs each year, the company said.

Twenty-five planes would be retired as the new Boeings were delivered.

The carrier is facing increasing competition from the merger this month of Japan Airlines and Japan Air System (JAS), especially on the domestic routes where ANA has a 50% market share.

"Our fleet plans are a clear signal to the competition that we're going to maintain a position of leadership in the domestic market," said ANA president and chief executive Yoji Ohashi in a statement.

ANA last month announced plans to offer online discounts of up to 29% on select domestic flights.


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