JAL Selects MRJ for Local Domestic Routes

First MRJ under final assembly in June 2014. (PHOTO  Mitsubishi Aircraft)

NIKKEI web-edition reported on August 28 that Japan Airlines has chosen MRJ, regional jets under development by Mitsubishi Aircraft.  

JAL will introduce MRJ to its domestic destinations from 2021 by replacing aging feeder fleet.  Fuel efficient, MRJ is expected to lower fuel bills for JAL while bringing with more flexibility to adjust flexibility of operations by seasonal change, thus reinvigorating JAL’s local network that once shrunk during the carrier’s corporate rehabilitation processes.

JAL will introduce 32 MRJs, billed about JPY 150 billion (USD 1.4 billion) by catalog price. The fleet will be based at Osaka Itami Airport for operations by its subsidiary J-Air that currently flying both Bombardier and Embraer small aircraft.

MRJ, either 70- or 90-seat,  will  become commercially available in 2017 according to Mitsubishi Aircraft. Applying with more composite materials and GTF engines, MRJ has a target of fuel consumption lower by 10 to 20 percent than today’s counterparts.

ANA, the launch customer of MRJ, has ordered 25 previously.

Mitsubishi Aircraft received order for 375  MRJs including options. Adding 32 more from JAL, Mitsubishi will mark over 400 orders that is said to be break-even point for MRJ development and production. Further, expectations of cost reduction by volume production may accelerate its marketing in overseas markets. ■

AirAsia Wants Skymark?

AirAsia Seeks Control of Skymark

2014/8/19 2:00

Nikkei on August 19 reported that AirAsia, the largest low cost carrier (LCC) in Asia is now studying to support struggling Skymark, Japan’s third largest carrier, hoping to acquire management control through its equity.

Skymark, now in business slump by competing a bunch of other emerging LCCs, has enough slots at Tokyo’s Haneda International Airport and flights from/to Haneda are dubbed cash-cow routes.

Skymark’s destinations from Haneda effective late-October 2014:

• Sapporo
• Fukuoka
• Naha
• Kagoshima
• Kobe
• Ishigaki

Skymark had ordered six Airbus A380s to launch international services but the carrier failed to pay for the aircraft and finally Airbus terminated the contract that may lead to cancellation fees as close as USD700 million

AirAsia with its fleet of over 150 Airbus products, is a major customer of AIrbus and has started to sound the European aircraft maker if it is possible to reduce the amount of penalty to Skymark.

Japanese civil aviation regulations stipulate that a  non-Japanese carrier cannot hold over one third of voting right; AirAsia may acquire Skymark’s capital through its own subsidiary  registered in Japan.

Shinichi Nishikubo, Skymark’s CEO and president, said ‘Skymark is still looking for its survival by itself.’  He holds about 30% of Skymark stocks.

However, if the real control of Skymark would be shifted to non-Japanese ownership, it would be unclear whether Ministry of Land, Infrastructure, Transport and Tourism would approve the same slots at Haneda for a new company.■

Skymark on August 19 denied the Nikkei reporting and stated that the company was never contacted by AirAsia.

Boeing 777. Japan's Next State Aircraft

Boeing 777-300ER Selected as Next State Aircraft, ANA Wins Service Contract

August 13, 2014

from various news sources

The government of Japan has chosen Boeing 777-300ER for the next government aircraft to be introduced from fiscal 2019 while changing government aircraft maintenance contractor to ANA from conventional JAL. An order of two Boeing large aircraft would be given by Tokyo. It was announced on August 12.

Selection of ANA is reportedly for its lower contract money and the government will award the service contract to All Nippon Airways for as long as 20 years.

Ministry of Defense allocated relevant budget of JPY 135 billion (approx. USD1.3 billion)  for the new aircraft to which JAL and ANA brought up with their proposals respectively. ANA finally won the race with JPY123 billion for a couple of aircraft, modifications, crew training as well as operations and service maintenance for twenty years from 2019.

A pair of Boeing 747-400, current official aircraft have been operational since 1993 and Japan Airlines has been the official maintenance service contractor. However, passenger 747s have been all retired at both ANA and JAL and it was said JAL would not be able to provide maintenance service for 747s after March, 2019.

777-300ER has a length of 73.9 meters with smaller cabin than 747s but better fuel efficiency of 30 percent and extended range of 14,000 kilometers, an addition of about 1,000 Km. Operations of new 777-300ERs would be based at Chitose Air Base, Hokkaido by Air Self-Defense Force as same as current fleet of 747s.

ANA Holdings issued its statement to announce its win of the state aircraft contracts saying ‘...very honorable for a Japanese carrier.’  Though the detailed terms and conditions are to be discussed later, ANA would get about JPY 2 billion from these contracts every year; it would be an attractive and stable revenue for carriers as their revenues  are susceptible to business cycle.

A Myanmar Carrier Buys 10 MRJs

An artist’s concept of Mitsubishi MRJ (Photo Mitsubishi Aircraft)

Air Mandalay, a Myanmar carrier, will acquire Mitsubishi MRJ regional jets, with an order  ten in total. This will become the first case of MRJ order out of Japanese and US carriers, and is expected to develop a momentum in sales of the aircraft in Asia where air traffic demand is growing.

Air Mandalay is a domestic carrier in Myanmar and expanding its operations thanks to more leisure travellers are heading for the country. The carrier chose MRJ for its advanced design.  Among the order of ten aircraft, four would be option.

Mitsubishi Aircraft had announced Eastern Air Lines  Group  Ltd. would order 40 MRJs on 14 July, the total order of the aircraft reaching to 365. Mitsubishi plans to fly MRJ in spring time in 2015 for the first time.