Dawn of a new era for Japan’s aviation industry with MRJ debut flight

Bloomberg, Kyodo, AP

Mitsubishi Aircraft Corp.’s new jet took off on its debut flight from Nagoya airport in central Japan, half a century after the country last introduced a new passenger plane.

The Mitsubishi Regional Jet, which can seat up to 92 passengers, took off at 9:35 a.m. Wednesday with two pilots in the cockpit. It flew over the Pacific coast and returned to the airport almost 90 minutes later. A round of applause rang out when the plane landed at 11:02 a.m.

“We have to conduct some checkups, but I think (the flight) was enormously successful,” Hideaki Omiya, chairman of Mitsubishi Heavy Industries Ltd., told reporters.

Mitsubishi Heavy, which built the renowned World War II-era Zero fighter, is a parent company of Mitsubishi Aircraft.

Mitsubishi Heavy and other major Japanese manufacturers are key suppliers for many aircraft parts and systems. But a large share of the jet’s components came from leading foreign suppliers.

Mitsubishi Aircraft, which has delayed the MRJ’s expected delivery date three times, tapped bullet train specialists to ensure the plane was completed. The launch will intensify competition for orders with Brazil’s Embraer SA and Canada’s Bombardier Inc.

“The MRJ has a lot of potential,” said Dan Lu, an analyst at JPMorgan Securities Japan Co. in Tokyo.”I expect demand for regional jets to increase as more people fly and airlines put smaller jets on some routes.”

The white jet with “MRJ” written on its tail took off Wednesday into a blue sky with a few clouds, on a brisk fall day with a light wind. About 200 members of the press milled about as helicopters hovered in the air a few hundred meters from the runway.

The subsidiary of Mitsubishi Heavy Industries Ltd. hopes the MRJ can break the virtual lock that Embraer and Bombardier have on the market for passenger jets with fewer than 100 seats. Boeing Co. and Airbus Group SE control the market for larger passenger planes.

With Montreal-based Bombardier focusing on its larger C-Series jets, which can carry as many as 160 passengers, Mitsubishi Aircraft sees an opening it could fill.

The company has won 407 orders, including options and purchase rights, for two versions of the MRJ, which can seat from 78 to 92 passengers.

The jetliner has a range of around 3,800 kilometers, allowing it to fly routes such as Tokyo to Shanghai or Taipei.

The development of the MRJ, which began a decade ago, has boosted hopes for growth of the country’s manufacturing industries, as the airplane requires millions of parts.

The government also lauded the plane’s maiden flight.

“It is the dawn of a new era for Japan’s aviation industry,” Economy, Trade and Industry Minister Motoo Hayashi said in a statement. “It will drive Japan’s growth.”

Chief Cabinet Secretary Yoshihide Suga told a news conference that the government will help promote the MRJ abroad.

Analysts are upbeat about the plane’s prospects.

“In our forecasts we have the MRJ replacing Bombardier as the second-biggest regional jet supplier,” said Rob Morris, head of consultancy at Ascend Flightglobal Consultancy.

Japan’s last homegrown passenger plane was the YS-11, a turboprop made by Nihon Aircraft Manufacturing Corp., a consortium that included Mitsubishi Heavy, Kawasaki Heavy Industries Ltd. and Fuji Heavy Industries Ltd. Only 182 of the planes were sold.

Nihon Aircraft stopped the YS-11 production line in 1974, a dozen years after its rollout. The company disbanded in 1983 with debts of about ¥36 billion ($292.4 million), according to the Asahi Shimbun newspaper.

Tetsu Sakai, 55, a pilot at ANA Holdings Inc. who flew the YS-11 for 14 years before it was retired, now is anticipating delivery of the MRJ.

“I look forward to Mitsubishi using the most of Japan’s engineering technology and building a good plane,” he said.

Mitsubishi Aircraft estimates the cost of developing the MRJ will be about ¥180 billion. The 92-seat MRJ90 is selling at a list price of $47.3 million, according to the company.

The MRJ will use a geared turbofan engine built by United Technologies Corp.’s Pratt & Whitney unit, which is expected to make the jets at least 20 percent more fuel efficient than similar aircraft, the company has said.

The two biggest customers for the MRJ are SkyWest Inc. and Trans States Airlines Inc. in North America. Domestically, Mitsubishi Aircraft has won orders from Japan Airlines Co. in addition to ANA, the nation’s biggest carrier.

  • 99Pcent

    Great stuff Japan. There will be a deadening silence from the haters and bashers on this story. Just sour grapes is what it is.

  • disqus_vBekJrf7g5

    Well done! It’s amazing what Japan Inc. can do when the costs and risks are socialized (by funding all the development with tax ¥ from the government) , yet I’m pretty sure all the profit will be privatized straight into Mitsubishi’s bank account, and it’s employees will get pay rises and bonuses, it’s share-holders will see an increase stock value and dividends, and yet, the Japanese tax payers, who paid for them to develop this, will get nothing back, right?
    Japan still has too many cozy relationships between the government and private sector (TEPCO anyone?), that facilitate the government stealing from the tax payer, to help their corporate friends. The Japanese people need to wake up and remind government who they are supposed to be serving (‘for the people, by the people, of the people’).

    • 108

      This is very typical of some of you here at JT; virtually all aircraft manufacturers feed on tax money, from EADS-Airbus and Boeing to the smaller Bombardier and Embraer. Yet when Japan does it, God kills a kitten.

      • disqus_vBekJrf7g5

        Just because other countries steal from their tax-payers, doesn’t make it ok for Japan to do it too (except for you, of course, all nationalists love waving the flag when they are robbed).

      • 108

        You’re missing the point: either you subsidize the aircraft industry or you don’t have one.

  • Tokyo Bill

    They have 223 firm orders. They say they spent 180 billion yen in fixed costs. (elsewhere I’ve heard double that). Profit per plane will be low because its a new plane, but let’s be “day dream believers” and say they can make 10% per plane and get the full $47 million per plane (no discounts; its not likely) Using $4.7 million profit per plane times 223 planes times 121 yen per dollar forecast right now, that’s 127,000,000,000 Yen against 180,000,000,000 fixed cost before any plane has been sold. They better hope there’s no trouble in meeting deliveries, quality or better competition from existing, established competitors using the same engines.

    • Matthew Sugandhi

      In terms of current competitors, the competitors include:

      Embraer’s E2 jets
      A more field efficient version of their successful ERJ175 series jets
      Includes jets for 80, 106, 132 seats.

      Bombardier CSeries
      While Bombarider touted this jet as a way to break the Boeing-Airbus duopoly, poor sales and several delays make the CSeries future dim. Right now is not entirely sure if Bombardier has enough cash to continue flight test program. It’s safe to say thatBombardier and the CSeries jet is in a rocky position right now.

      Sukhoi Superjet
      Received some western order with a Mexican LCC and Irish LCC though not in large numbers.

      COMAC C919
      Several orders with Chinese carriers though no international orders as of yet

      Mitsubishi MRJ
      Better position than Bombardier, COMAC, and arguably Sukhoi
      The problem is that Embraer will be difficult to beat. Due to delays in the MRJ program, the Embraer