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All Nippon Airways to Buy 15 Boeing Jets : 767 Edges Out Airbus for $1.8-Billion Contract

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from the Washington Post

All Nippon Airways, Japan’s second-largest carrier, said Thursday that it will buy 15 Boeing 767-300 wide-body jets and take an option for 10 more. Worth up to $1.8 billion, the deal will be Japan’s largest single purchase of commercial aircraft from the United States.

Boeing beat out the European consortium Airbus Industrie in hard-fought competition to sell a new 300-seat jet to ANA, which operates 94 aircraft on domestic routes here and is expected to begin overseas service in 1986.

ANA said it chose Boeing’s aircraft over the Europeans’ A300-600 because of lower initial cost, easy conversion for use on foreign routes and compatibility with the existing fleet. ANA already operates 21 of an earlier version of the jet, the 767-200.

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“There are many things in common in equipment, parts and training,” an ANA announcement said Thursday. “Therefore, our initial investment will be lower, and that favored the Boeing 767-300.”

ANA and Japanese government officials denied that there was any political factor in the decision, which comes as the United States is applying concerted pressure on Japan to correct an imbalance in trade. Japan is expected to have a record $50-billion trade surplus with the United States this year.

But one U.S. official here commented: “The fact that the Japanese have decided to buy American will certainly be very highly regarded in Washington.”

More Business for Japan

The purchase will also bring more business for Japan. In terms of value, Japanese subcontractors produce about 15% of the 767, which Boeing is offering as a low-noise, highly fuel-efficient jet for the ‘80s and ‘90s. Japanese firms have no significant subcontracts for the Airbus.

ANA and Boeing are to sign final papers in February and at that time decide what engine the jets will use, choosing between models made by General Electric and Pratt & Whitney.

ANA will pay about $71 million for each plane. Delivery is to begin in the fall of 1987 and continue for about nine years.

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ANA is only the third carrier, after Delta Airlines and Japan Air Lines, to order the 767-300, which has yet to see commercial service. The first production model will be unveiled at Boeing’s Seattle plant on Jan. 14.

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