Airbus Aims to Double Japan Market Share by 2020

TOKYO--European aircraft giant Airbus is looking to nearly double its share of the Japanese market by 2020, hoping to build momentum after winning a landmark order with Japan Airlines Co. (9201.TO) earlier this month.

During a speech at a business forum in Tokyo, Airbus CEO Fabrice Bregier said he hopes to get a 25% share of the Japanese market by 2020, and ultimately, half over the next 20-25 years, up from 13% currently.

"We will grow our market share" by bolstering sales of jets such as the A350 and other aircraft for low-cost carriers, Mr. Bregier said.

Earlier this month, JAL placed an order with unit of European Aeronautic Defence & Space Co. (EAD.FR) for 31 long-range Airbus A350 jets at price of Y950 billion ($9.75 billion), with an option to buy 25 more.

The move was seen by some in the industry as the possible beginning of the end of Boeing Co.'s (BA) dominance in the Japanese market.

JAL's fleet is about 80% Boeing-made, with the only non-Boeing aircraft smaller planes mainly for regional flights. Airbus accounts for about 7% of the fleet of Japan's other big carrier, All Nippon Airways.

Analysts expect JAL's decision to increase pressure on Boeing to keep ANA Holdings Inc. (9202.TO), the parent of All Nippon Airways, from also switching to Airbus.

The deal came after battery problems on two Boeing 787 planes -- one each operated by JAL and ANA -- prompted the global grounding of Boeing's flagship aircraft earlier this year. That raised questions about the heavy dependence of two Japanese carriers on a single supplier.

It was a "normal" decision for JAL to buy Airbus aircraft, Mr. Bregier said.

Airbus is also looking to expand its relationships with Japanese parts makers, hoping to use more of their parts in future, he said.

Write to Yoshio Takahashi at [e-mail]

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