Economic Calendar

Thursday, September 4, 2008

Boeing to support Mitsubishi Heavy in jet business

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TOKYO, Sept 4 (Reuters) - Boeing Co (BA.N: Quote, Profile, Research, Stock Buzz) has agreed to provide support in marketing, development and customer service for Mitsubishi Heavy Industries Ltd's (7011.T: Quote, Profile, Research, Stock Buzz) regional jet business, Mitsubishi Heavy said on Thursday.

The pact will enable Mitsubishi Aircraft Corp, a unit of Mitsubishi Heavy, to utilise Boeing's know-how in production of carbon fibre-made fuselages and other areas, Junichi Miyakawa, executive vice president of Mitsubishi Aircraft, told reporters after a news conference.

He declined to reveal further details of the contract.

"This will be a big boost for our sales activities," said Yosuke Takigawa, senior vice president of Mitsubishi Aircraft.

Mitsubishi Heavy had said it would seek the assistance of Boeing in its $1 billion Mitsubishi Regional Jet (MRJ) project to build Japan's first passenger jet, but it had not revealed details.

Mitsubishi Aircraft plans to launch 70- and 90-seat passenger jets in 2013, going head to head with Canada's Bombardier Inc (BBDb.TO: Quote, Profile, Research, Stock Buzz) and Brazil's Embraer (EMBR3.SA: Quote, Profile, Research, Stock Buzz) (ERJ.N: Quote, Profile, Research, Stock Buzz).

Mitsubishi Aircraft, owned 68 percent by Mitsubishi Heavy, aims to sell 1,000 jets in 20 to 30 years, grabbing one-fifth of expected new demand in a market forecast to roughly quintuple to more than 5,000 planes by 2026.

The company has so far received an order for up to 25 MRJs from All Nippon Airways Co (9202.T: Quote, Profile, Research, Stock Buzz). Takigawa said the company planned to sign a definitive sales agreement with All Nippon Airways soon. (Editing by Chris Gallagher)




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