UPDATE 1-Japan's ANA says to buy 3 Boeing 777s, one 767

Tue Jul 30, 2013 3:23am EDT

* Boeing orders worth $1.1 billion based on list price

* ANA says 787s remain central to its fleet strategy

* ANA reports 5.61 bln yen operating loss for April-June

TOKYO, July 30 (Reuters) - All Nippon Airways, affirming its confidence in Boeing Co's 787 Dreamliner was unshaken by a fire on one of the jets in London, said it would buy three Boeing 777 aircraft and a 767 freighter worth $1.1 billion based on their list price.

ANA said there was no change to its 787 Dreamliner orders and the advanced aircraft remained central to its fleet strategy despite a spate of incidents involving the plane this year.

The airline reported a 5.61 billion yen ($57.3 million) operating loss for the three months ended on June 30.

"The 787 is an aircraft that overall has had few problems," Kiyoshi Tonomoto, an executive vice president at ANA, told an earnings briefing.

ANA operates the world's biggest fleet of 787s with 20 in operation and another 46 on order.

Accident investigators in Britain have traced the fire on an Ethiopian Airlines Dreamliner at Heathrow airport this month to an area housing the plane's built-in emergency locator beacon, made by Honeywell International Inc.

ANA has removed the beacons from eight Dreamliners that ply domestic routes, with local regulators' permission, and has inspected those on its 787s that fly overseas. During checks, the Japanese airline said it found slight damage to the battery wires on two beacons, which it has sent to Honeywell for analysis.

Earlier this year, regulators worldwide grounded the 787 for more than three months after overheating battery incidents on two of the planes.

The 777-300ER has a list price of $315 million, while the 767 freighter carries a list price of $185.4 million.

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Comments (1)
SeniorMoment wrote:
ANA realizes that with such long routes the only way it compete well enough on fares is by lowering its annual fuel bill, which the new Boeing Aircraft does well. Until the competition catches up with its own 787 purchases ANA will have a strong cost advantage that it can use as profit or to pay down debt and lower its debt service costs if it decides not to increase its market share by lowering fares.

Jul 30, 2013 7:29am EDT  --  Report as abuse
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