Japan Airlines (JAL) is reportedly considering placing an order for over 20 Boeing 737 MAX airplanes as part of its fleet renewal programme. This comes after ANA Holdings placed an order for 20 737 MAX 8 airplanes, making it the first Japanese airline to become a MAX customer, and low-cost carrier Skymark confirmed an order for four MAX aircraft in January, with an option to acquire two more in the future. According to reports, the deal with JAL will likely include both the smaller MAX 8 and the larger MAX 10 variants. Talks are still ongoing and an official announcement is expected later this month.
JAL is in conversations with both Airbus and Boeing, and according to insiders, the airline is favoring the Boeing 737 over Airbus’ best-selling A320 family of aircraft. Japan Airlines has a fleet of 43 Boeing 737-800 planes with an average age of just over 13 years, which it flies on domestic and medium-haul international routes within Asia. The carrier has been hunting for the latest-generation narrowbody planes to renew its medium-haul fleet.
The two fatal accidents involving MAX aircraft in 2018 and 2019 had left the plane’s future in uncertainty around the world, including Japan. ANA had taken two years before finalizing its MAX order last year, after the plane was deemed fit to fly again following software upgrades. The MAX’s recent worldwide approval to fly again has led to several airlines renewing their narrowbody fleets, including Air India, Hong Kong’s Greater Bay Airlines, and Luxair. These airlines have possibly found the MAX to be a better deal with a shorter delivery timeline than Airbus.
If JAL places an order for the 737 MAX, it would be the second Japanese airline to do so, in a market that has traditionally been dominated by Boeing. Although Airbus has made inroads for its single-aisle A320 at ANA’s low-cost Peach unit, JAL’s Jetstar Japan flies leased A320s, so ensuring a foothold for the MAX in the mainline fleet of the national carrier was seen as a priority for Boeing.
Boeing and Airbus have been engaged in a long-standing competition, with their 737 MAX and A320neo families of jets respectively, in the narrowbody market. It will be interesting to see how this rivalry plays out in the coming years as more airlines around the world renew their narrowbody fleets.
The domestic market in Japan has rebounded strongly since the pandemic, according to the International Air Transport Association (IATA). However, outbound travel has been penalized by the weakening of the Japanese yen. This has led to Japanese airlines focusing on domestic travel and other Asian destinations. With the 737 MAX set to renew JAL’s medium-haul fleet, the airline will likely benefit from the plane’s fuel efficiency and range, making it a more economical choice for the carrier in the long run.
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