Coming
Soon: Japan’s First Airliner in 50 Years
By Eric Pfanner in the
Wall Street Journal
NAGOYA, Japan—In a building where designers
once worked on the World
War II-era Zero fighter, engineers are toiling away on a new project: Japan’s
first commercial airliner in half a century.
Mitsubishi
Aircraft Corp. is set to show off the new aircraft for the first time on
Saturday, after a series of delays. The company has invited government
ministers and business partners to Nagoya for a rollout of the Mitsubishi
Regional Jet, demonstrating its status as a quasi-national project for Japan.
“Many
people have been asking, ‘When is your aircraft going to be ready?’” said the
company’s president, Teruaki Kawai, in an interview Wednesday. “Now we finally
have made the aircraft almost ready to fly.”
The
first test flight of the jet, which will be offered initially in versions
seating 76 or 88 passengers, is scheduled for the second quarter of next year,
with deliveries expected to begin in 2017. But the project, which has generated
a modest 375 orders and options, faces growing international competition even
before it takes to the runway.
Mr.
Kawai says the company, whose controlling shareholder is Mitsubishi Heavy Industries Ltd. , aims within the next two decades to
grab a 50% share of the global market for regional jets—which are used for
short-haul flights and typically seat 70 to 100 passengers. The company
predicts that more than 5,000 such aircraft will be delivered world-wide during
that stretch.
Rob
Morris, head of consultancy at Ascend Flightglobal Consultancy in London,
predicted that despite the slow start, Mitsubishi would garner 22%, or $28
billion, of about 4,000 regional jet deliveries world-wide through 2033. That
would place Mitsubishi second behind Embraer SA of Brazil, which Ascend forecasts will
deliver 61% of jets in the category during that period.
The
regional-jet business has long been dominated by Embraer and Bombardier Inc. of Canada, mirroring the duopoly in the
market for bigger jets, which is shared by Boeing Co. and Airbus
Group NV. Bombardier has
been losing ground in regional jets as it invests in development of a new,
larger aircraft that would go up against the Boeing 737 and the Airbus A319.
The
Mitsubishi jet isn’t the only new entrant. Sukhoi Co. of Russia makes a
regional jet and Commercial Aircraft Corp. of China is developing one. But the
Sukhoi Super Jet 100 suffered a setback when a demonstration flight crashed in
Indonesia two years ago, while the Chinese ARJ21 has yet to be certified by
China’s aviation authorities despite having a maiden flight in 2008.
Mitsubishi
is promoting its jet as cleaner, quieter and more comfortable than existing
regional jets, thanks in part to new engines from United Technologies Corp.’s Pratt & Whitney, which Mitsubishi
says will cut fuel consumption by 20% compared with similar airliners.
Mitsubishi says its design, which places the baggage compartment at the rear of
the fuselage rather than below the seats, will permit greater headroom than in
other regional jets, which require tall passengers to duck.
Mr.
Morris said the extra space and fuel efficiency, combined with the new design
of the jet, could give Mitsubishi an edge. “There is a real market opportunity
here,” he said.
Embraer
and Bombardier are countering with upgrades of their existing regional jets,
which they say will also cut fuel consumption and operating costs. Embraer
plans to use the same Pratt & Whitney engines in new versions of its E-Jet
series.
“In
this segment, it’s all about the economics—along with, of course, reliability
and service,” said Andy Solem, vice president for sales in China and the
Asian-Pacific region in Bombardier’s commercial aircraft division. Embraer said
in a statement that its long experience in serving regional airlines would give
it an advantage over the Japanese newcomer, and it cited its “strength in
customer support.”
The
Mitsubishi planes are priced at between $40 million and $50 million, comparable
to competing aircraft, analysts say. Customers who have made firm commitments
include All Nippon Airways, Trans States Holdings and SkyWest Inc. of the U.S. as well as Air Mandalay Ltd.
of Myanmar. The revived Eastern Air Lines Group Inc. of the U.S. has also
placed orders. In August, Japan
Airlines Co. signed a letter of
intent to buy up to 32 of the jets.
“We
hope to support the birth of a Japanese passenger jet which we can boast about
to the world,” said Jian Yang, a JAL spokesman.
On
the same day in August, however, JAL also said it would order more regional
jets from Embraer. Embraer says it already has 590 orders for its
next-generation regional jets, even though they aren’t expected to enter
service until 2018.
The
lag in orders is “a normal situation,” Mr. Kawai said, “because our airplane
hasn’t even flown yet.”
The
last Japanese commercial airliner was the propeller-driven YS-11, which had its
first flight in 1962. Honda
Motor Co. is developing a
four- to six-passenger business jet for sale next year.
Mitsubishi
Aircraft has invested about $1.8 billion in development of the jet.
Shareholders include Toyota
Motor Corp. and the
Development Bank of Japan, while the government has provided research and
testing support but no direct financial aid, Mr. Kawai said.
“We
feel that success in the endeavor has significant meaning for Japanese
industrialization,” Toyota said in a statement.
Mr.
Kawai agreed. “For a long time, Japan has been successful in industries such as
automobiles,” he said. “It should last, but we need to find new industries.
Aircraft manufacturing can be one of them.”
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