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JAL selects Airbus A350s as it seeks to down-size aircraft capacity due to competition and costs

Analysis

Japan Airlines' selection of the A350 is a welcome win for Airbus in a strongly Boeing-flavoured Japanese aircraft fleet. It is also consistent with JAL's strategy to use smaller widebody aircraft as Japanese demand weakens and global competition works even more against JAL's high cost base - one of the highest in Asia. It was not long ago that JAL operated the world's largest fleet of 747s. JAL's 2010 bankruptcy restructure saw all 747s retired, but the process also introduced a mindset change at JAL that it could no longer be the behemoth it once was. That has been accompanied with practicality of how many passengers JAL can reasonably expect to carry.

The A350 JAL has ordered is a slight downward revision of capacity from JAL's 777-300ER long-haul backbone.

While Asian peers Asiana and Cathay Pacific have also ordered the A350, it will not be the largest type in their fleet whereas JAL's current order sets the A350 to be JAL's largest long-haul aircraft, complementing the medium-sized 787.

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