2014-11-02

Mitsubishi Wants to Get Hal of Global Market for Regional Jets:

MRJ Rolls Out: Mitsubishi is bullish to capture a half of global regional jets market

Compiled from TOYO KEIZAI On-line, October 19, 2014

Mitsubishi Heavy Industries rolled out MRJ at its Komaki South Plant on October 18. The aircraft, first unit for flight test, is the newest regional jet in market and Mitsubishi intends to start the first delivery in 2017 by starting flight testing by the second quarter of 2015.
MRJ is being developed by Mitsubishi Aircraft, a subsidiary of Mitsubishi Heavy, as regional jet  for 70 to 90-seat class. The aircraft is the second indigenous passenger aircraft after YS-11, a turboprop smaller civilian passenger aircraft which flew in 1962.
MHI formally started MRJ development in 2008 but it faced three times of delay and managed to complete the first unit for flight test.
Here is an excerpt of interview by TOYO KEIZAI online of Teruaki Kawai, President of Mitsubishi Aircraft Corporation on MRJ’s development processes and marketing.

You managed to complete the first MRJ for flight testing at last.
It was six years ago when MHI decided to develop the aircraft by launching Mitsubishi Aircraft. We came a long way to show the aircraft to public from nothing. However, only half of the development work is complete now; we will face the real challenge soon.
The next turning point will be flight testing scheduled sometime in the second quarter of the next year.
Development so far has been conducted on the ground, or it has been a kind of simulation. Some factors can be confirmed on the ground but after all nobody knows the real stuff until it flies. By results of flight test, we may change some of the design or its systems.
Time schedule of MRJ so far was delayed three times. You have outlined target of the first delivery at the first half of 2017. Can you realize this schedule? 
I believe it can be realized. We must keep the schedule by any means. Repeated delays have caused a lot of inconvenience to our customers including launch customer ANA. We are not allowed to delay the schedule further as our customers are anxious to fly our product for their own business.
Development of a new passenger aircraft calls for national certification after verifying its safety based on a vast amount of data.One of causes for repeated delay was that you have been stuck at that work.
Certification is the hardest challenge in new aircraft development. We had little know-how and experience in proving the safety and we are having a hard time, yes.  Then we signed a contract with a foreign consulting firm which has many clients at passenger aircraft development and the firm are giving us a lot of advice.
So far the order for MRJ is 223 for confirmed order and 407 including booking. How do you view this ?
Mitsubishi is a newcomer in passenger aircraft business. In spite of this, it is fair to say this level of order before flight test is a good success. This year, we have reached agreement with Japan Airlines in August and we got formal order from Eastern Air Lines.
We think it is very significant for us to see JAL’s decision. Now as the two major airlines in Japan have endorsed our product, MRJ would take more attention in overseas market.
For regional jets below 100 seats, Embraer and Bombardier are major players while Russian Sukhoi and Chinese COMAC are developing new aircraft respectively.
Frankly, I don’t believe Russian and Chinese are major competitors. Bombardier is shifting to larger airframe of over 100 seats and its new CSeries doesn’t compete MRJ in the same market. For smaller regional jets below 100 seats will probably become an arena of one-on-one battle between Embraer and Mitsubishi.
That Embraer has announced a new aircraft E2 series with the same engine for MRJ last year and it already adding new order steadily. 
It would be Embraer’s counterplan for MRJ. E2 is based on existing airframe changing wings and engines; it would be superior than existing models but cannot be free from restrictions based on the current design.
On the other hand, MRJ is a clean sheet design to fully utilize Pratt & Whitney's newest engine.  E2 may close the gap but MRJ still keeps its advantage in fuel efficiency and others.
What Embraer has and Mitsubishi has not is proven results as passenger aircraft assembler. Some airlines may say skeptically, ‘Can Mitsubishi guys really do it as they say about advantages of MRJ?’
To wipe out such anxiety, MRJ’s development must go forward very steadily. When we start flight test, we will be able to convince them more with actual data of fuel efficiency.
How many aircraft do you foresee to sell or how about market share goal?
We forecast around 5,000 new aircraft demand of regional jets below 100 seats in coming 20 years. At present, U.S. and Europe are major marketplaces but we anticipate Asia and Latin America will have more demands. We aim at capture a half of global demands by ourselves, at least in spirit.
You have other kind of challenges such as setting up of series production in addition to airframe development.
Exactly. We need a lot of preparatory works in passenger jet business.
To name a few, we need to build customer support system in addition to full production flows as well as finance menu for our customers. MHI as a group will manage all these preparations.■