Boeing to Sell Up to 50 7E7 Planes to JAL

Reuters ^ | 12/22/04 | Reuters

[KwasiOwusu]

TOKYO (Reuters) - Boeing Co. could sell up to 50 of its new 7E7 planes to Japan Airlines Corp. (JAL) under a deal announced on Wednesday worth as much as $6 billion at list prices.

Asia's biggest airline joins key Japanese rival All Nippon Airways as one of the first carriers to choose the sleek 7E7, a mid-sized airliner expected to offer low fuel and operating costs when it debuts in 2008.

"We chose the 7E7 after carefully considering both it and Airbus's aircraft," a JAL spokesman said.

A firm order for 30 planes and options to buy 20 more will be signed next spring with delivery beginning around April 2008. The planes are worth about $120 million each.

JAL plans to replace 36 Boeing 767 jets and 22 Airbus A300-600s in its fleet.

[KwasiOwusu]

Let the Euro rise some more, so Beoing can find it even easier to sell their planes over the hated, super heavily subsidized Euro Airbus.

[Yo-Yo]

It's not just the Euro that's rising. The Dollar-Yen gap is widening as well.

[2banana]

It also didn't help with all the Airbus 300s crashes...

[taxed2death]

....yea, but only when you give it hard right rudder....heheheeh

[dts32041]

Of course the kick backs to the daley crime machine will be incredible.

[Guillermo]

Well of course they're going to buy Boeing.

Subsidized Japanese companies produce many components of Boeing jets.

And people say only Airbus is government subsidized...

[ConservativeStatement]

And this, too:

"BEIJING, Dec. 22 -- China Eastern Airlines Corp., one of the country’s leading carriers, was to purchase eight 737-300 aircraft from Boeing Co. next year to help it operate on routes to Southeast Asian countries, the Hong Kong-based Wen Wei Po reported Monday."

http://news.xinhuanet.com/english/2004-12/22/content_2366313.htm

[KwasiOwusu]

"And people say only Airbus is government subsidized..."

Airbus exists because of subsidies.
No subsidies, no Airbus.
Its that simple.

BTW, Japanese companies that produce parts for Boeing, like Mitsubishi are highly efficient private companies.

For you to even attempt to compare the rabid Airbus subsidy machine to efficient Japanese firms that produce parts for Boeing, is highly disingenuous.
They are not even close!

[KwasiOwusu]

"China Eastern Airlines Corp., one of the country’s leading carriers, was to purchase eight 737-300 aircraft from Boeing Co. next year to help it operate on routes to Southeast Asian countries, the Hong Kong-based Wen Wei Po reported Monday." "

Cool.
Add to that the stock market is at 3 1/2 year highs.
These holidays just keep giving.

[hermgem]

A victory over a government created, sponsored and financed conglomerate called Airbus to alleviate unemployment and displace the U.S.
Airbus decided to one up Boeing's 747 with a mightier, larger, heavier monstrosity only to belatedly realize that size is not what the market wants.
A win over grandiose and tunnel thinking Eureans.
But do not gloat, another improved copy to the 7E7 will follow sooner or later.

[Guillermo]

Well, after 9-11, Boeing said tehy'd go under if the Feds didn't renegotiate the sale of several planes to the Federal Governemnt.

And the Feds obliged them.

I'm not comparing one to the other, I'm simply saying they're both subsidized.

And this idea that buying Airbus is "Anti-American" is absurd. If an (American) airline chooses to take advantage of a company that takes advantage of foreign taxpayers, then more power to them.

[bmwcyle]

[Brilliant]

the Japanese have good business sense.

[Liberty Tree Surgeon]

But given that the US retains only Boeing as a manufacturer of this type of aircraft (MD being mostly a no-show these days), those foreign taxpayers could effectively be helping subsidize Boeing out of business. That is a long-term view, rather than a focus on short-term gains on the price side.

[Guillermo]

Boeing bought MD.

In the long run, subsidized businesses fail, and non-subsidized businesses succeed.

If subsidizing private industry actually worked, in the long run, then every conmpany would recieve subsidies.

[Hillarys Gate Cult]

The aft fuselage by Alenia & Vought is also going to built at a new plant here in the Charleston SC area.

[KwasiOwusu]

"But given that the US retains only Boeing as a manufacturer of this type of aircraft (MD being mostly a no-show these days), those foreign taxpayers could effectively be helping subsidize Boeing out of business"

Show me one industry that the Euros have manged to subsidize their Euro firms so that their foreign competitors went out of business.
The Euro governments spent billions of dollars on their "Fourth Generation computer initiative " and on their Euro HDTV projects.
The result?
They are every bit as much behind as they were before spending all those billions of Euros on these projects.
American companies continue to totally dominate the world computer industry, with no Europeans companies coming even close to challenging them, apart from SAP on ERP's.
But even here, Microsoft is already set to take on the German SAP.

[SW6906]

"China Eastern Airlines Corp., one of the country’s leading carriers, was to purchase eight 737-300 aircraft from Boeing Co. next year...."

Methinks that is a typo as Boeing no longer builds the 737-300, only 737-600, -700, -800, and -900.

[Yo-Yo]

(MD being mostly a no-show these days)

Boeing bought Mcdonnell-Douglas, and now the DC-9/MD-80/MD-90 is built as the Boeing 717.

[SW6906]

If memory serves me right, Airbus receives "loans" from the governments at far below market rates that they don't have to pay back should the aircraft the funds are used to launch does not sell enough to be profitable. Boeing does not get such sweetheart deals. Boeing may get something akin to "subsidies" via subsidized suppliers or government paid-for research, but that adds up to pennies compared to Airbus' millions.

As far as the monstrosity A380, Airbus themselves has said they need to sell something like 250 of them to be profitable. They have sold only about 125 and the sales seem to have stalled (pun intended). Let's see if the billions in "loans" Airbus was given to build the A380 are ever paid back......