Japan's biggest airline, ANA, announced a multi-billion dollar order on Tuesday from two different suppliers. And it could be a way for one of Japan's biggest companies to cozy up to the Trump administration. The airline, ANA, is set to purchase 20 Boeing 737 MAX jetliners, with an option for ten more that's along with 18 Airbus A320 Neos, the price tag, over $4.3 billion.
Though Reuters Tokyo correspondent, Tim Kelly says, expect ANA to get a discount.>> Is the list price $7 billion but typically when airlines order aircraft, they buy them at a discount. They never buy them at the list price, especially if you're gonna buy large orders like these, quite often they're heavily discounted.
So the actual number, how much ANA's gonna pay for these aircraft over the time period that it buys them, we don't know currently.>> Boeing based in the US and French aircraft maker, Airbus have long battled for business when it comes narrow-bodied jets in the global market, with the US firm chipping away at it's rival.
Currently, 81% of ANA's aircraft with more than 100 seats were Boeing-built. ANA's rival, Japan Airlines also operates a mostly Boeing fleet, giving the US company its most dominant position in any major aviation market.>> Some people say that Japan represents Boeing's home market and the share that they have in Japan is larger than they do in their home market in the US.
>> The order also comes at a time when Japan is facing pressure from US President Donald Trump's administration to cuts its trade surplus with the United States.>> So it sends a message to the US that Japan is happy and willing to buy US products. And several billion dollars is big headline numbers, it kind of in a way maybe assuages that concern on the US side.
It maybe lessens the anger the Trump administration has in regards to those trade deficits.>> Japan has used major plane orders in the past to demonstrate a commitment to buying US goods. And a new deal for Boeing 737 MAX coincides with similar tensions now.