All Nippon Airways (ANA) has dealt Airbus a serious blow in its efforts to boost its share of the important Japanese market, with a decision to order Boeing 737s over A320s to modernise its narrowbody fleet.

ANA says it will order "an estimated 45" new-generation 737s - mainly the -700 - to replace its 25 existing A320s, 25 737-500s and two 737-400s, some of which are in service with subsidiary Air Nippon. Deliveries will begin early in 2005.

The carrier, which is an existing Airbus operator, was widely expected to order A320s and the European manufacturer was privately confident, until just weeks ago, that it would secure the deal, helping it increase its Japanese market share which is estimated at only 20%. It is believed to be the first time that an existing A320 operator has ordered 737s in a major competition.

ANA says it "selected the Boeing aircraft for reasons of efficiency and economy, and its fit with the ANA domestic route network, among other factors". It adds that the domestic fleet rationalisation will help it save ´6 billion ($50 million) in annual operating costs.

As its current fleet plans stand, ANA will become an all-Boeing operator once the A320s are phased out. It had already made plans to phase out its seven A321s by the 2005 fiscal year. However, ANA says it plans a future order for "new, super-efficient" aircraft to replace older widebodies and will consider Airbus types.

Source: Flight International