Why Japan's new passenger jet must succeed

 

The MRJ is Japan's first homegrown passenger plane since the YS-11 took to the skies in the 1960s.

The first made-in-Japan passenger jet in half a century was unveiled in a rollout ceremony in mid-October. The significance of this milestone cannot be overstated.

     The Mitsubishi Regional Jet, or MRJ, was developed by Mitsubishi Aircraft, the Nagoya-based subsidiary of Mitsubishi Heavy Industries. The aircraft is packed with cutting-edge technologies. With all the money it has pumped into the ambitious undertaking, Mitsubishi Aircraft will be under pressure to grab a large enough chunk of the hotly contested global market to recoup its investment.

     The MRJ is a twin-engine jet that can accommodate 70 to 90 passengers. It is equipped with a new type of engine that sips fuel while generating relatively little noise. It is intended for shorter flights linking urban hubs with smaller cities.

     Much of the work done by Japanese companies in the aircraft industry is in collaboration with U.S. giant Boeing. Though these Japanese manufacturers have produced key components, such as the main wings and fuselages, the general perception is that they are little more than subcontractors.

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The MRJ can change this view. It is the first passenger plane to be developed from scratch in Japan since the YS-11 turboprop was rolled out in the early 1960s. The country must continue turning out homegrown planes.

     Aircraft manufacturers have to meet exceptionally high safety standards compared with makers of other industrial products. The advanced technologies and materials developed for new aircraft often find their way into other industries, to immense effect. Without question, maintaining the ability to bring all these components together to create a finished aircraft is crucial for boosting Japan's overall industrial and technological prowess.

     The MRJ is scheduled to make its maiden flight next spring. The first delivery is planned for 2017 -- far behind schedule due to repeated delays in development. It is important that no further delays occur.

     The history of the YS-11 offers important lessons for the latest project. Production of that aircraft was halted in less than 10 years, despite the plane's solid reputation. The business model created for the YS-11 was deeply flawed -- the more planes were sold, the more money was lost.

     The YS-11 was a national project. It was developed by a consortium involving the government and all of Japan's aircraft companies. The MRJ, in contrast, has been handled solely by Mitsubishi Aircraft. Global demand for regional jets is expected to reach 5,000 units over the next 20 years, and Mitsubishi Aircraft is aiming for half of that. To hit that mark, the company will require top-notch capabilities in cost management, marketing and maintenance. That is the only way the company can outmaneuver the Brazilian, Canadian and other companies that dominate the market for this class of aircraft.

     Mitsubishi Aircraft also needs to be ready to adapt to rapid changes in the marketplace. For example, budget carriers are bulking up and spreading fast. Their aircraft requirements are different from those of conventional, full-service airlines.

     The government also has an important role to play. It has supported the development of key technologies used in the MRJ. It must also be ready to help smooth the path for Mitsubishi Aircraft to explore emerging markets, such as by providing loan programs to facilitate exports.