All Nippon Airways order for 70 aircraft to help it shift to international markets, catch up to JAL

All Nippon Airways' order for 70 aircraft - 20 777Xs, six 777-300ERs, 14 787-9s and 30 A320neo/A321neos - is part of a calibrated strategy to shift its focus to the faster growing international markets as Japan's domestic environment remains slow. In 2015 the previously all-domestic ANA expects to have more international than domestic capacity for the first time in its history. Japan Airlines has historically been larger in the international market while ANA was dominant domestically. ANA's more bullish long-haul growth with the 777X, larger than the 777-300ERs it is replacing, contrasts to JAL's 2013 decision to replace its 777-300ERs with smaller A350-1000s.

In ANA's order there is considerable replacement of existing aircraft; over two-thirds of the order will be used for replacement. But there will be international, and particularly long-haul, growth as ANA capitalises on Japan being a more attractive destination with a weaker yen, as well as Japan's advantageous geography for North America-Asia traffic flows. International is to drive growth at ANA. These objectives are helped by ANA's joint-venture partners who should benefit from ANA having a larger international role, although the trade off may be yield pressure.