25-Plane Deal Spurs Spinoff Company To Advertise, Build Plane

It's official -- there's a new player in the increasingly crowded regional jet game. Mitsubishi Heavy Industries officially launched the Mitsubishi Regional Jet (MRJ) Friday, with a 25-plane order (10 firm, 15 options) from Japan's All Nippon Airlines.

Beginning April 1, the tentatively-named Mitsubishi Aircraft Corporation, a new company established by MHI to conduct MRJ business, will accelerate the MRJ's development and further strengthen sales activities to potential customers worldwide.

As Japan's first company to manufacture and market original passenger jetliners, Mitsubishi Aircraft will fulfill a long-desired goal of the Japanese aircraft industry.
The company will be responsible for various key activities in the MRJ project, including the jetliner's design, acquisition of type certification (T/C), procurement, sales and customer support. MHI's Nagoya Aerospace Systems Works will manufacture both the prototype aircraft and production models; it will also be in charge of the MRJ's flight testing.

Mitsubishi Aircraft was established as a wholly-owned subsidiary of MHI capitalized at 3 billion yen, with plans calling for an increase up to 100 billion yen in line with business operations development. MHI plans to furnish roughly two-thirds of the requisite capital, and to secure the remaining equity investment it has approached companies including Toyota Motor Corporation, Mitsubishi Corporation, Mitsui & Co., Ltd., Sumitomo Corporation and the Development Bank of Japan.

Mitsubishi Aircraft, headquartered in Nagoya, is to start with approximately 200 employees. Nobuo Toda, Director and Senior Vice President at MHI, has been named its first president.

As ANN has reported, the MRJ is a 70-90 seat class regional jet that will be the first regional jet to adopt composite materials for its wings and vertical fins on significant scale. In combination with new Pratt & Whitney engines and an advanced aerodynamic design, the aircraft is being planned to reduce fuel consumption substantially and to contribute greatly to enhanced competitiveness and lower operating costs for the airline companies.

Since deciding on authorization to offer the MRJ in October 2007, MHI has been conducting full-scale marketing activities worldwide. The company says response has been favorable to date, and more orders following ANA's are expected.

FMI: www.mhi.co.jp