Sunday, May 11, 2008
   
 
 
yournews
   
Video Finance Features Weather Travel Discussion TV Shows
CNA Live    | About Us 
 
  Home ›
 
Business News

 
 

Mitsubishi jet moves closer to reality with ANA order
Posted: 27 March 2008 2334 hrs

 
 
Photos  of

   
 


TOKYO : An ambitious project to develop Japan's first jet airliner moved closer to take-off Thursday as All Nippon Airways ordered up to 25 of the fuel-efficient mid-sized planes.

Japan's second-largest airline said it had placed a firm order worth about 600 million dollars for 15 Mitsubishi Regional Jets (MRJs), with an option for a further 10. It expects to take delivery of the aircraft after 2013.

Japan Airlines, Asia's largest carrier, said it was also studying whether to buy the plane.

Mitsubishi Heavy Industries Ltd. is expected to announce in the next few days a decision on whether to push ahead toward a commercial launch of the jet, which it says would be the most quiet, light and fuel-efficient model in its class.

"Together with Mitsubishi Heavy, we, as a launch customer, want to ensure the plane sells well globally," ANA senior vice president Akira Okada told a news conference.

If the airline replaced the Boeing 737-500s that it uses on some domestic routes with the MRJ, its annual profits would rise by about 5.0 billion yen (50 million dollars), Okada said.

Fuel consumption would be cut by 40 percent, he said, because the Boeings "are a bit too large for some domestic flights."

The Mitsubishi jet project, which enjoys state support, would compete with small aircraft produced by Canada's Bombardier and Brazil's Embraer, as well as jets designed by Russian and Chinese firms.

"The market for small jets is promising, especially in Asia, given expectations for increasing economic growth and flow of people," said Osuke Itagaki, a transport analyst at Credit Suisse.

"Also, demand for small jets is expected to increase in Japan" after the expansion of the two main airports serving Tokyo in 2010, he added.

The MRJ would be the first commercial passenger aircraft in four decades -- and the first jet airplane -- to be developed in Japan.

Japan has in the past developed a turboprop plane, the YS-11, which was the only Japanese airliner built since World War II. It made its debut flight in 1962 and production ended in 1974.

The Mitsubishi plane would have 70 to 90 seats and be equipped with the new energy-saving "geared turbofan" engine designed by US-based Pratt & Whitney.

The project is backed by the government but Okada said there was "no pressure" from the state to buy the plane. He said ANA would share its expertise in cabin design with Mitsubishi Heavy.

Japan's top automaker Toyota Motor Corp. said this month it was considering giving its financial backing to the venture.

Japan Airlines, Asia's largest carrier, is also looking at the plane, which it said in a statement was "a significant national project that will contribute greatly to the development of Japan's aviation industry.

"There is the possibility that we will reassess our current requirement for small regional jets over the coming years, particularly prior to us retiring older regional jets from our fleet," it added.

Japanese media have said that Vietnam Airlines and Emirates were also considering the jet, but the Dubai-based carrier denied the report.

Mitsubishi Heavy said Thursday that it might outsource maintenance of the plane to Swedish aviation group Saab if it goes ahead with the project.

"We are currently considering various options while moving toward a business alliance with Saab on maintenance and repairs," said a Mitsubishi spokeswoman.

- AFP /ls

 

 



Other business News
Shell losing 30,000 barrels per day after Nigeria oil attacks
Japan's JVC, Kenwood to merge in October, says report
ArcelorMittal sells off US steel mill
Murdoch withdraws bid for Newsday, says report
Bangladesh govt to reopen talks with Tata on US$3b investment
Italy seeks private Italian hands for Alitalia
Nissan to make lithium-ion batteries with NEC
US stocks slide on spiking oil prices, AIG loss
Oil prices extend record run, break US$126
EDF makes offer for British Energy

 


Advertisements

 
Affiliate Sites:
 
About Us  |  Contact Us  |  Advertise with Us  |  Terms & Conditions