Mitsubishi Aircraft eyes profit in 10 years

Nagoya, Japan: Mitsubishi Aircraft, the maker of Japan's first domestically developed passenger jet, is in talks with five to six potential customers and aims to turn profitable in 10 years when it will have cumulatively sold 500 planes, its president said.

The company, owned 64 per cent by Mitsubishi Heavy Industries, is planning to start production of the Mitsubishi Regional Jet (MRJ) by early next month and make its first deliveries to customers in 2014.

The MRJ will be built in 70-seat and 90-seat variants, placing it in competition with jets made by Brazilian group Embraer and Canadian company Bombardier Inc as well as planes designed by Russian and Chinese firms.Mitsubishi says its planes will be 20 per cent more fuel efficient than rival aircraft, allowing carriers to cut operating costs. The jet is expected to sell for about $40 million (Dh146.8 million) each.

"We want to be making six jets a month in four to five years time after the product launch. If that manufacturing level continues for six-seven years, that's when we should clear the break-even point," Hideo Egawa, head of Mitsubishi Aircraft, said.

"By that time, MRJ should also be able to have built a good and solid reputation in the market."

Japanese airline All Nippon Airways has already committed to buy 25 of the jets, while Trans States Holdings of the US last year placed an order for 100.

No deals

But Mitsubishi was unable to secure any deals during the Farnborough Airshow this year, partly due to delays in its launch schedule. Russian rival Sukhoi Co fared better at the show, selling Superjet 100 models.

Egawa, who was a vice president at Mitsubishi Heavy before taking the helm of the aircraft firm, said there were ongoing talks with five to six airlines and leasing firms and that he expects interest to grow with the jet going into production.