MRJ regional jet on target for first delivery in mid-2020

PARIS (Reuters) – Japan brought its first passenger aircraft in half a century to the Paris Airshow, confirming it is on track for first delivery in mid-2020 and hoping to show potential customers the progress it has made.

The 90-seat Mitsubishi Regional Jet (MRJ) is Japan's first commercial aircraft in 50 years but it has been delayed five times and is facing rising costs.

"We have brought it here to demonstrate that the plane is making good progress," Shunichi Miyanaga, the president and chief executive of Mitsubishi Heavy Industries, told journalists at the Paris Airshow on Sunday.

He said he did not expect to announce any orders at the show but would be speaking to many potential customers.

Yugo Fukuhara, vice president of sales and marketing at Mitsubishi Aircraft Corp., said he hoped Swedish leasing company Rockton, which last year signed for up to 20 of the MRJ planes, would help market the jet to European customers.

Europe is the second largest market for regional aircraft after the United States.

“There are a lot of regional jets still operating in Europe and we have some great opportunity to replace those with the MRJ,” he told Reuters.

The MRJ, which is on static display at the air show, was delayed for two more years in January to redesign its wiring and meet the requirements for certification by the US Federal Aviation Administration (FAA).

Mitsubishi Aircraft Corp has now brought French company Latecoere on board to introduce new wiring, Alex Bellamy, senior director of the programme management office at Mitsubishi Aircraft Corp, said.

When asked whether it could be delivered sooner, Mitsubishi Aircraft Corp president Hisakazu Mizutani said the company was aiming for mid 2020 but was working hard to bring the technology forward.

Launch customer ANA, which has resorted to leasing jets and pushing back the retirement of older aircraft while its awaits the delayed MRJ, said on Sunday it remained committed to the programme.

“As an airline, we are completely ready to receive it,” Osamu Shinobe, vice chairman of ANA Holdings, said.

PARIS (Reuters) – Engine maker Rolls-Royce believes there is a market for a new mid-priced jet such as the one Boeing is currently exploring and would consider working with Boeing on it, an executive said on Friday.

Boeing is studying a gap in the market between narrow-body jets and long-haul aircraft for a potential new airplane that could seat 220 to 260 passengers.

“There is clearly a market, the question is how do you serve it?” Eric Schulz, president of civil aerospace at Rolls-Royce, told journalists at a briefing ahead of the Paris Air Show, which starts on Monday.

He said that should Boeing decide on a mid-market jet, then Rolls-Royce as an engine maker would weigh up the opportunity.

“If there is the possibility to enter a programe, we will examine it and if the conditions are right, we will,” he said.

Earlier on Friday, Rolls-Royce said it had made a good start to 2017, but the outlook for cash flow remained challenging.

The company is grappling with falling revenue from its older engines at the same time as investing in new engines.

“Our ramp up in large engine production is progressing well, reflecting the significant investments in manufacturing capability in recent years,” Chief Executive Warren East said.

Schulz said the company was increasing production of Trent engines, including the Trent XWB 84K for the A350.

“Six to seven years ago we were making 250 Trent engines a year, this year we want to manufacture more than 400 and our target is 430-450,” he said. “Eighteen months from now, we want to produce 600 Trent engines a year.”

He said the company was now making seven Trent XWB 84K engines a week and aimed to reach 10 engines a week in the first quarter of 2018.

But Rolls-Royce is still behind on the Trent 7000 programme for the A330neo, with a current three-four month delay.

“We are in a phase where we can catch up some of the delay, to reach a reasonable delay of two-three months compared with what we initially expected,” he said.

He said he hoped to see the A330neo fly around the start of September.

Shares in Rolls-Royce were up 1.4 percent at 1009 GMT.