Mitsubishi Aviation Will Start MRJ Production from September

Mitsubishi Aviation, a subsidiary of Mitsubishi Heavy Industries, revealed its plan to start production of Mitsubishi Regional Jet (MRJ), Japan's first jet passenger aircraft, from September.

Production of its components will start at Oye Plant of Mistubishi Heavy in Nagoya. Final assembly will take place at Mitsubishi's Komaki South Works neighboring Nagoya Airport in 2011.

So far ANA has placed order for 25 MRJs while Trans States Holdings ordered as many as 100 aircraft. Mitsubishi is reportedly talking with several airlines in US and European nations.

The first flight is scheduled in the second quarter of 2012; the first delivery is targeted in the first quarter, 2014.

Narita to Welcome More Business Jets

The government of Japan will launch a package of new policy to stimulate growth of economy, one of them is dealing with Narita International Airport for its deregulation and construction of exclusive facilities for smaller business jet aircraft.

The idea behind this new policy is to make it easier for global business leaders to convene conferences in Japan or for affordable people to come over here to undertake medical services, thus pushing Japan's economic boost.

Narita's new exclusive terminal for business jets will be completed by March 2013 while the current regulation of parking a business jet on its tarmac of maximum seven days to longer or abolished.

Landings of business jets at Narita totaled 2,100 and 500 at Haneda, closer to central Tokyo, both are incomparably fewer than 255,000 at six airports around New York.

Japanese Ministry of Land and Transport estimates Japan has lost as many as 4,000 flights by business jets as the country's poor infrastructure for corporate business jet incoming flights; the loss of opportunity were compensated by organizing the original conferences in other countries.

Haneda can accommodate business jets but the airport regulates prior application by seven days while parking is limited up to five days. Deregulation at Narita ahead of Haneda; as hub function at Haneda is given more priority, Narita has a fear of losing its significance as gateway to Japan as it was originally designed.

The number of business jets are on rise since 9-11 as security of business elites are of greater concern and U.S. general aviation forecasts it will grow as many as 20,000 in 2016 from 12,000 in 2006.

ANA Posts Biggest Deficit

All Nippon Airways (ANA, Tokyo Stock Exchange stock code #9202) has announced its latest consolidated financial closing with a loss of 57.3 billion yen (about 0.6 billion US dollars), surpassing 4.2 billion yen deficit at a year ago as its biggest deficit in a single year.

 The deficit should be attributed to sluggish growth of passenger revenue which came from fewer passengers by bad economy as well as new type of flu last year. Fewer business class passengers as well as intensive competition lowered average price of seat in every flight; domestic seat price was reduced by 3.3% from previous year while 30.1% drop was seen in international flights.

As for the coming year ending March 2011, ANA expects gross sales revenue of 1,360 billion yen or 10.7% higher than this year with final profit of 5 billion. ANA counts on recovery of traffic demand and more revenue as expansion of its slots at Tokyo's two international airports at Haneda and Narita.

Its rival Japan Airlines will withdraw from 45 air routes in this year in both domestic and international market. ANA does not think it will benefit from JAL restructuring. Volcanic effect of Iceland in April is believed to lower ANA passenger revenue by 1 billion yen and 0.5 billion yen in profit.

JAL Reports Record-High Deficit Ever

Japan Airlines, under corporate rehabilitation, will report around 160 billion yen ($1.7 billion) of operating deficit in its corporate account closed  in March 2010. The deficit level is the largest since 2002 as the result of big drop in passenger revenue; the company reported 50.8 billion yen of deficit a year ago.

The worsening revenue will hasten its restructuring such as a further trimming of payroll as well as stopping of money-losing air routes.

JAL's international passenger revenue saw over 40% shrinking in a period from April to December last year while its domestic passenger revenue also showed over 10% drop. Its passenger revenue after January still shows no sign of recovery.

However, its principle subsidiary, Japan Airlines International as operating company has found a turnaround in March with a small amount of black ink with the effect of replacement of its fleet  by smaller and fuel-efficient aircraft.

JAL and its supporter, Enterprise Turnaround Initiative Corporation has submitted its restructuring plans consisting of withdrawal from 47 air routes after October and slashing over 16,000 personnel by the end of March 2011 to its main transaction banks.

But the banks felt the plans was insufficient for JAL to gain profit and calling for more stringent measures such as addition of international service to withdraw. In response to their objection, JAL and ETIC will postpone their submission of corporate rehabilitation to the Tokyo District Court to August from original June.

ANA Getting Ready For First Delivery of 787

All Nippon Airways invited the press to training facilities of Boeing 787 mechanics on March 12. Unlike conventional training centering around class room sessions with paper documents, 787 course features all manuals in electronic format available at PC for trainees, while other PCs enable them to see cockpit as well as other parts of the aircraft, making them to join in simulated repair works. ANA also introduced flat panel trainer, simplified flight simulator, to lower training cost.

Currently the first batch of 12 mechanics are undertaking the training in Japan; they will go to Boeing at Seattle by the end of this month and when they pass the examination using the actual 787, they will be certified as instructor mechanics.

ANA's 787 order totals 55 and the airliner expects to receive the aircraft sometime in the fourth quarter as the launch customer of new Boeing airliner.

IHI and Boeing Team Up for New Fuel Cell System for Aviation

IHI announced the company will collaborate with Boeing for development of fuel cell system for aircraft. The working principle of the system is to use power generated by jet engines more effectively so that it will lead to reduction of fuel carried by aircraft. Its development is scheduled to complete by 2011 and probing experiment will start from 2013 on board aircraft.

IHI will develop the system from power-recycle fuel cells used for galley on board.  IHI will work on development of the fuel cell and its coordination with jet engines while Boeing will work on harmonization of the system with power supply on board.

If successful, it is hoped to curtail fuel consumption of commercial aircraft service by around 1%.

JAL Goes Back to AMR, Rejecting Delta

New leadership of JAL, Kazuo Inamori, Chairman of the Board revealed his opposition for JAL to change its alliance membership from One World to Sky Team.

JAL management is tilting to reflect Inamori's opinion and will announce Delta Airlines to discontinue their talks on joint venture within this week.

Inamori and new president K. Onishi had expressed their statement to review the selection of joint venture partners from 'blank sheet' again as they assumed their positions in early this month.

Grounds of Inamori's opposition to change alliance membership are seemingly financial and business reason, and he fears to see extra costs of changeover as well as decrease in sales if JAL joins Sky Team. He rather prefers to see recovery of JAL operations by keep staying at One World alliance.

JAL-DELTA JOINT VENTURE TALKS STARTS OVER AGAIN

FROM Yomiuri Shimbun, FEBRUARY 7

Japan Airlines, once made a basic agreement with Delta for strategic alliance, has decided to start the talk afresh.

This decision reflects the opinions of Kazuo Inamori, a new chairman of the board. JAL will compare the two possible partners, Delta and American Airlines and will make a final decision after February 8 when its board will be filled by new members.

Originally JAL planned to announce details of a new joint venture plans with Delta in early February since they had reached an agreement with Delta on working level.

Joint venture with Delta is being endorsed by more from Enterprise Turnover Initiative Corporation who acts as receiver of JAL's rehabilitation as well as the Ministry of Land and Transportation as Delta has more density of air routes.

On the other hand, JAL is now a member of One World alliance member and it will change its membership to Sky Team if JAL-Delta joint venture comes true.Inamori as well as some members of JAL board are reportedly insisting a further study a possible confusion and effect to corporate profit by alliance membership changeover.

New Transport XC-2 Succeeds in First Flight

XC-2, a prototype of next military transport for Japan's Air Self Defense Force made its first flight at Gifu Air Base on January 26.

The flight was originally scheduled in September 2007. However, as a series of troubles found as such as lack of structural strength of components and its development plans has been delayed extensively.

Project CX was started in fiscal year 2001 to replace old and smaller C-1 transports. Kawasaki Heavy Industry is the prime contractor and numerous makers and suppliers are engaged in its manufacturing. The development was done concurrently with the next maritime patrol aircraft XP-1 for Maritime Self Defense Force by the same prime contractor, thus keeping the development cost lower as about 340 billion yen (approximately US$38 billion)  for the two aircraft types.

With its extended range, XC-2 or C-2 when deployed to JASDF, is expected to help Japan's overseas relief mission as well as usual domestic defense air lift service.

The dimension of XC-2 is as follows:
    Length: 43.9 meters (144 feet)
    Span: 44.4 meters (145 feet)
    Height: 14.2 meters (46.5 feet)
    Power Plant: GE CF6-80C2 (thrust 27.9t, 61,510 lb) x2
    Payload: 37.6 t (82,890 lb)(maximum)
    Range: 0t/10,000km 12t/8,900km (4,800 nm); 30t/6500km (3,510 nm); 37t/5600km (3,024 nm)

Should ANA Succeed JAL's International Flights ?

January 20

Japan's Transportation Minister, Seiji Maehara, has told it is necessary to examine if JAL and ANA should be integrated in international operations within as long as three years for Enterprise Turnaround Initiative Corporation commits itself for the support of JAL after its bankruptcy. At previous press conference, the minister suggested a possibility to stop the current policy to keep two major carriers of Japan. A merger of JAL and ANA in domestic flights may violate the anti-monopoly law and Maehara said this possibility is out of study.

Maehara told the press that 'two-major-player system could be sustained but if not, it is an option to integrate JAL and ANA in international operations.'  He also stated he is in negative position to relax the current regulations on foreign capital participation to Japanese carriers by saying 'we should be cautious for that.'

JAL Bankruptcy Filed

Breaking News

JAL Files For Bankruptcy, With Record High Total Debt of Y2.3Trillion

Japan Airlines, with its two subsidiaries, fileｄ a petition for protection with the Tokyo District Court under the Corporate Rehabilitation Law and the court issued its acceptance to start the procedures on afternoon, January 19. With total debt of ￥2,320 billion, JAL rewrote the history of corporate failure in the past. Simultaneously Enterprise Turnaround Initiative Corporation (ETIC) formally decided to support JAL's rehabilitation and is ready to infuse a total amount of ￥900 billion. Accordingly, on the same day, Tokyo Stock Exchange classified JAL stocks as special category, a step before desisting of stocks; TSE today announced JAL stocks will be desisted on February 20. 

Asteroid Probe Hayabusa Is Coming Home With Rock Sample

 

Hayabusa, Japan's space probe that challenged to collect sample of rocks on an asteroid as an unprecedented attempt in human history, has reached to an trajectory to enter Earth's gravitational sphere, Japan Aerospace Exploration Agency (JAXA) announced on January 14.  With this, the chance for Hayabusa to return to Earth is almost definite as well as enhanced possibility to collect its capsule with collected rock sample.

 

Hayabusa was launched in May 2003, headed for asteroid Itokawa orbiting between Earth and Mars; it succeeded two times of landing and lift off from the asteroid. The probe encountered mechanical trouble two times and its scheduled return to Earth was prolonged three years.

 

On January 13, JAXA succeeded to move the probe to trajectory to pass inside Earth's gravitational sphere, or about 1.5 million kilometers from Earth. As of January 14, Hayabusa is about 59 million kilometers away from Earth. It will keep thrusting of its main engine, electric ion unit, by mid March to approach Earth more. Hayabusa will reach Earth in June.