Japan Airlines mulls replacing short-haul fleet with more fuel efficient models

Japan Airlines Co. is considering replacing its older Boeing Co. 737 short-haul fleet with more modern and fuel efficient models, according to people familiar with the matter.

The airline, which operates 45 of the 737 jets with an average age of about 12.5 years, is currently deciding between the 737 Max range and Airbus SE’s rival A320neo family, the people said, asking not to be identified because the discussions are private.

An order could be for anywhere between 30 and 50 of the narrow-body jets, the people said. Deliberations are preliminary and no final decisions have been made, the people said.

Japan Airlines said in a statement that it will “upgrade to fuel-efficient aircraft and for short-haul fleet replacement we are considering the early introduction of new small- and medium-sized aircraft.” It added that nothing concrete had been decided yet.

Representatives for Airbus and Boeing declined to comment on confidential discussions with customers.

Airlines globally are in the midst of overhauling their fleets as travel surges back after two years of being virtually off limits during the pandemic. Japan is considering expanding a domestic travel subsidy program to bolster its tourism industry, local media reported earlier this month, even as the country continues to cap overseas visitor numbers.

Japan’s tourist sector has suffered more than most in Asia because the nation has been slow to re-open to foreigners. Prime Minister Fumio Kishida said late last month that some package-tour visitors would be allowed from June 10, under quite strict conditions.