Aviation & Space News from Japan

2011-12-03T13:38:00.001+09:00

JAL’s Performance shows Better-than-Expected Operating Profit of $1.8 Billion

from Mainichi Shimbun, 8 November 2011

Japan Airlines publicly announced its expected result of consolidated performance of a year ending in March. The sales amount showed a sluggish growth due to the effect of the East Japan Earthquakes in last March. However, following a drastic business restructuring since January 2010 when the airline went bankruptcy, its operating income is expected to reach JPY140 billion which is twice the size of the target of its rehabilitation plans. This better performance is to pave way to re-listing of the stocks of the company expected sometime around September 2012.

The 3-11 disasters brought with a large drop of passengers in April-May period, resulting as its sales amount of JPY1.15 trillion, smaller than the target by the rehabilitation plans.

In terms of business size, ANA still outnumbers JAL by annual sales. However, JAL will earn more than two times of ANA in operating profit.

On the same day, JAL announced its mid-term performance ending September 2011 as JPY599.8 billion of sales and JPY106 billion of operating profit.

Sales Pitch Getting Hotter in Tokyo for Next Fighter of JASDF

2011-10-09T10:52:00.000+09:00

from various reports,

October 9, 2012

Three makers are intensifying to appeal their respective products for sale to Japan as it is closing its selection of next fighter for Air Self-Defense Force.

New type will replace F-4E Phantom II fleet (103 including modified F-4EJ Kai) and Boeing F/A-18E/F Super Hornet, Lockheed Martin F-35A and Eurofighter Typhoon are vying for the selection in coming weeks.

Lockheed Martin has brought in and demonstrated a F-35 cockpit simulator to Tokyo, appealing its high end performance. The company revealed its proposal could satisfy all conditions including delivery time imposed by Japan. Particularly, its stealth performance may appeal to Japan where it would face new generations of fighters in China and Russia in near future.

Boeing, on the other hand, has appealed F-A-18E’s superiority in terms of product supply and cost while emphasizing the company was willing to offer 70-80% of the production for localization with licensing.

BAE Systems, proposing Eurofighter Typhoon,made a presentation in British Embassy in Tokyo with attendance of ambassadors of participating countries, in a unprecedented manner, and called for attention of Japanese decision makers for its superiority and price.

Defense Ministry would choose the type based on not only performance and price but how extensive Japanese corporations can engaged in production and maintenance as to keep production base of fighter business as the last of F-2 production has been completed recently without the immediate project in sight.

The ministry has already submitted its budget request for fiscal 2012 including JPY55.1 billion for acquisition of the first four aircraft of FX and will finalize the selection by the end of November.

New Intelligence Satellite Launched Successfully by H2A Heavy Lift; More Information on North Korea in Sight

2011-09-23T16:53:00.003+09:00

From Nihon Keizai Shimbun/Asahi Shimbun, web editions, 23 September 2011

Mitsubishi Heavy Industry and JAXA has launched the 19th unit of heavy lifter H2A carrying the Japanese government’s information gathering satellite Kogaku #4 on 1:36pm, 23 September (JST) from Tanegashima Space Center. The satellite was separated from the rocket and put into planned orbit and the launch was evaluated as successful. H2A has marked 13 consecutive launches without failure.

The new satellite is designed to monitor military installations in North Korea as well as large scale natural calamity by orbiting about 500km distance from the surface. It is equipped telescope and high end digital camera and will replaces the second unit of optical recognisance satellite whose designed life of five yeas had expired.

Japan plans to operate a combination of optical reconnaissance satellites and radar satellites. Current three units are all optical information gathering satellites and two of the three have already passed designed longevity. By launching a new generation of satellites, two optical and two radar equipped, Japan would obtain a new capabilities to monitor any selected place on the surface at least once a day, regardless of time and the weather.

Capabilities of the new optical satellite is classified but it may identify an object on the surface as small as 60cm.

Launching of indigenous information gathering satellites was initiated in 1998 after a missile launch over Japan by North Korea.

Who Is Noda? What implications to aerospace industry?

2011-08-30T22:07:00.002+09:00

NODA, Yoshihiko, 95th prime minister since 19th century, born 27 May 1957

Enter the sixth prime minister in five years. Japanese prime minister is given wider authority than most people might think. For instance, he is the commander in chief for all defense affairs.

Let us take a look at what he have spoken before regarding space and aviation matters.

He was showing his initiative to look for defense use of the outer space, as chairman of working team for science and technology application policies at his party. His stance was against the conventional government standpoint to restrain the military use of space. He also showed his idea to pursue ‘Space Treaty’ to allow Japan to use use space for non-aggressive use. He also worked hard to reorganize many divisions in different ministries into ‘Space Agency,’ that is now approved agenda for near future reshuffle of the government organizations.

However, he has so many urgent agenda, mostly domestic such as recovery from natural and nuclear disaster from March 11, too fast appreciation of yen currency, mounting deficit; but it is also true that he must face many unsolved diplomatic issues like Okinawa base relocation, challenges from Korea and China. In this circumstance, it seems he may give lower priority to space policy.

His policy viewpoint is sometimes regarded as ‘hawkish’ and it is a focus of attention whom he would appoint as new Defense Minister. At least my favorite choice of Seiji Maehara has not chance as he was appointed as chief of policy making at his ruling party.

His new cabinet is expected to be launched on September 2.

Converted US-2 Flying-boat Civilian Use: Ministry of Defense Approves Export to India In Sight and More to Follow

2011-07-02T17:20:00.000+09:00

July2, 2011

Japan’s Ministry of Defense will approve civilian conversion of several defense assets for possible export to Asian market. The first of this new approach will take place with US-2 search and rescue flying boat. Shin-maywa, the maker of the aircraft has started its sales to India and Brunei as fire-fighting aircraft.

All of technical information belongs to the Ministry by the contract and it calls for approval by the minister for the Shin-maywa to use the intellectual property for its own commercial use. Since the flying boat is not designed for combat, the government has understood its export cannot violate Japan’s Three Principles to Ban Weapons Export. With the approval by the ministry, Shin-maywa will be able to show detailed data of the aircraft to potential foreign customers.
The price tag is expected to JPY7-8 billion (about US$100 million) per aircraft and the maker will pay a certain amount of commission to the ministry. Higher than Bombardiar’s flying boats, US-2 has appealing performance such as lower speed flight and the ministry and the maker estimate a certain demands in market. Shin-maywa will complete its variant as fire fighting type and try to sel to domestic local governments for 3 to 5 units.
India and Brunei are showing strong interest in US-2; most probably the two nations are thinking of China as future threat and expanding their assets while keeping stronger ties with Japan by importing Japanese defense assets.
After US-2, most probably two types of aircraft will follow the case of defense-to-civilian conversion: C-2, twin-jet air transport and P-1, four-jet propelled maritime patrol aircraft, both developed jointly by Kawasaki Heavy Industries and the Ministry of Defense.

Flying with Peach: ANA’s new brand for LCC is Peach

2011-05-28T13:11:00.004+09:00

28 May 2011

ANA has announced on May 24 that its LCC would be named Peach.Shinichi Ito, CEO, stated ‘the company wishes to become the first LCC from Japan to Asian destinations.’

Peach will start its scheduled flight service from its home at Kansai International Airport to domestic destinations of Fukuoka and Shin Chitose (Sapporo) from March 2012 and international destinations starting from Inchon (Seoul) in May 2012. Peach will pursue the general level of airfare of other LCCs, around half of major airlines.

There are some speculations that ANA, a legacy airline, cannot get success in LCC business as the two brands would vie for the same customers at the same air routes.

Recognizing the previous cases of too interference from parent companies that led to failure of new born LCCs, ANA’s CEO Shin-ichiro Ito wishes to tolerate some degree of ‘dog-eat-dog’ situations in existing domestic routes.

Of current employees of 50 at Peach, a third is transferred from ANA and the new born LCC wants to hire more mid-career from other airlines and other business sectors and gradually reduce the influence of ANA’s culture.　

Peach's website in English: http://www.flypeach.com/?lang=en

Japanese Air Force Made 29% More Scramble Flights; 2.5 Times More for Chinese Aircraft in 2010

2011-04-30T21:21:00.002+09:00

from Nihon Keizai Shimbun, April 28, 2011

Defense Ministry’s Joint Staff Council (JSC) released the number of scrambling by Japan Air Self Defense Force (JADSF) during fiscal 2010, April 2010-March 2011. The number for Chinese aircraft showed 2.5 times increase from the previous year by a total of 96 missions. Scrambling for Russian aircraft accounted for 68％ as the largest with 264 sorties or 34% increase. The statistics show the two countries were intensified for their intelligence and information gathering missions to Japan.
The total number of scrambling was 368 times in fiscal 2010, a 29% increase but there was no case of incursion to the Japanese airspace, according to JSC. A peak of the number of scrambling was recorded in 1984, in the midst of cold war, with 944 sorties, then it went down as low as 331 times in fiscal 1992.

The Russians carried out long distance flight along with the Japanese airspace from the Sea of Japan to the Pacific Ocean while the Chinese approached closer to the Senkaku Islands that Japan claims as its territory.

Since March 11 earthquake, JASDF still flew its interceptors to the approaching aircraft of the two countries: 14 sorties to the Russians and 4 times for the Chinese respectively.

Photo Ministry of Defense

JAL Reborn In More Troubled Sky

2011-04-02T16:19:00.000+09:00

March 29,2011

Japan Airline's corporate rehabilitation process has come to complete on March 28 as it was decided by the Tokyo District Court. JAL got additional loan of about 255 billion yen (about $3 billion) from banks, that was used to repay its carryover debt of about 395 billion yen with its own cash. However, Japanese air traffic would be in a hard time after March 11 earthquake/tsunami and the accident at the Fukushima Daiichi nuclear plant and its path to growth again is not secured.

JAL had filed an application for the corporate rehabilitation process on January 19,2010; it had over 1 trillion yen debt back then and literally bankrupt. Its major transaction banks abandoned their loan armouring 520 billion yen. JAL completed a tough restructuring plan such as slashing off 16,000 employees as a whole group level, dropping unprofitable air routes and capacity cutting that had approval of the court in November 2010.

The global economic recovery worked positively for JAL to earn 175 billion yen operating profit in 11 months from April 2010 until February 2011. This better performance resulted in additional loans from the banks.

However, the post quake traffic is decreasing overall and Ken Onishi, President of JAL, revealed its domestic demand is 28% off while international demand is 25% down.
　
Kazuo Inamori, Chairman, is confident to run JAL better now by seeing profitability by air route, though he expects lowering of the corporate performance is unavoidable.

Russian Aircraft Violated Japan’s Airspace; Possibly to Collect Radioactive Air Sample

2011-03-30T22:02:00.000+09:00

From the Asahi Shimbun, March 30, 2011

Two Russian aircraft entered Japan’s air defense identification zones with air dust collection pods as found by the Japanese air force; most probably the Russian aircraft was missioned to collect radioactive matters in the air as released from Fukushima Daiichi nuclear plant accident to find the effect to their own country.

Defense Ministry official told that a Su-27 flew from Vladivostok to the coast off Akita, Japan entering Japan’s Air Defence Identification Zone from 8:30am to 10:30am (local time) on March 21. On the same day, from 10:30 am to 11:30 am, another aircraft, An12 for electronic warfare, flew from off coast of Noto Peninsular to the western coast of Hokkaido, another intrusion to ADIZ.

The both aircraft were intercepted by fighter aircraft of the Japanese Air Self-Defense Force that visually observed the Russian aircraft were fitted with dust collection pods respectively. The Su-27 was found to be flying at different altitudes of 2,000 ft to 20,000 ft., a typical flight profile to identify the thickest air with radioactive substances.
　
Japan’s Defense Ministry has analyzed their flight patterns were provocative as 1) the Russian aircraft purposely intruded Japan”s ADIZs knowing to trigger scrambling of Japanese air force 2) the Russians apparently tried to check the current alertness by Japan for air space intrusion while a large-scale deployment of its military power is ongoing to rescue missions to March 11 earthquake and tsunami disasters.

Post Quake Support: Two Globalhawks Flying Over Japan

2011-03-21T02:52:00.000+09:00

USAF is operating two Globalhawk UAVs and U-2s over Japan, esp. Tohoku region where intensive damage by March 11 earthquake and tsunami directly hit. Unofficially the casualty of this disaster is exceeding 20,000 mark, including those who still missing.

Globalhawk is especially put on special imagery information gathering mission flying high over Fukushima Diichi nuclear plant where the desperate efforts are going on to cool down those uncontrolled nuclear reactors.

Mainichi Shimbun reported that the imagery information data was shared by USAF to the Japanese government but Tokyo is reluctant to show the images of the plant to Japanese public. The reasons for its reluctance is unknown but USAF has gave the information to the Japanese government without conditions, reportedly.

Earthquake Update: Three Airports Closed

2011-03-13T17:31:00.000+09:00

Sendai, Hanamaki and Ibaraki Airports are closed as of now by the severe earthquake on Friday. Sendai airport view was observed by fly over airplane, showing its tarmac and runway was completely washed by tsunami and covered by brown muddy soil while some light airplanes still standing although they are out of order.

Narita International Airport is operative and the author of this blog had landed there on Saturday afternoon; inside the airport terminal, some moving escalators were inoperative showing power failure's damage to the system.

Local and land transportation is largely disturbed while ANA, JAL are operating special flights to airports of Tohoku (north eastern region) such as Aomori, Yamagata and Fukushima. Yamagata Airport is now designated as 24-hour operation emergency base for rescue missions.

This report is compiled as of 5 pm JST (+9 UTC) from various reporting.

Breaking News; Narita and Sendai Airports Closed by Quake

2011-03-11T19:24:00.000+09:00

By stronger-ever earthquake off the coast of northeastern part of Honshu island in the afternoon of Friday March 11 (local time), both Narita International and Sendai airports are closed of the entire operations. NHK public broadcasting showed Sendai airport where its terminal tarmac was washed by Tsunami tidal waves while people escaped to the rooftop of the terminal. No direct damage to Narita is reported so far.

JAL's Recovery On Track

2011-02-27T17:44:00.002+09:00

JAL Records Higher Profit Than Originally Planned
/JAL To Get New Capital

From Jiji Press and Yomiuri Shimbun, 26 February 2011

Japan Airlines, under corporate rehabilitation, will be highly likely to record consolidated profit of JPY170 billion (US$2 billion) at the end of March 2011. This amount is 2.6 times larger than the originally planned profit by the corporate rehabilitation plans as submitted to the Tokyo District Court at the end of last August, attributed to the company’s overall cost reduction efforts. The forecasted amount of profit is the record high in the history of JAL The higher cash flow will help the airliner to strengthen its financial foundation, the company’s weak point over the years.

JAL will welcome additional financial help from eight companies as capital investment of JPY 20 billion at maximum. New investors will include Tokio Marine and JTB, travel agency among other six companies of Daiwa Securities, Kyocera, Mitsui Sumitomo Marine and Fire, Sompo Japan, MS & AD Insurance and Hankyu Travel. JAL first wanted a larger capital investment as much as 50 billion yen; as the result of JAL’s overall management performance will lower the amount to 20 billion level.

Apart from that, JAL expects a new financial loan equivalent of JPY280 billion from major dealing five banks led by Development Bank of Japan as well as new members such as Mitsubishi UFJ Trust and Banking, Aozora, Tokyo Star, Chiba Banks as well as Okinawa Development Finance Corporation.

Japan Succeeds HTV Launch

2011-01-22T17:59:00.000+09:00

The second unit of Japanese heavy lift H2B, launched from Tanegashima Space Center, Kagoshima, on 14:37 local time on January 22. Its payload, Kounotori 2 (Stork), also known as HTV, unmanned space replenish vessel for International Space Station (ISS), was separated normally about 15 minutes after the launch at altitude of 300 kilometers and put into earth orbit. This successful launch is a sequel to September 2009.

HTV was developed by JAXSA, Japanese Space Agency, as Japanese commitment to provide a means of supply materials to ISS. After five days from the launch, HTV will approach to ISS by increasing its altitude and finally will dock to ISS.

HTV, a cylindrical structure with 10 meter length and 4.4 meter diameter, weighs about 16 tons including its payload of experimental devices for Kibo testbed at ISS as well as daily consumables for astronauts including clothing and hygiene supplies such as shampoo. Its total cost of production is about 15 billion yen (about 183 million dollars).

The lift, H2B, is derivative of the original H2A rocket by incorporating two units of H2A engines for larger lift thrust. Unit cost of its launch is also 15 billion yen. Counting together with its original H2A, H2 series has scored 14 successes consecutively and 19 succeful launches in total. The launch was

JAXSA website ; http://www.jaxa.jp/index_e.html

SKYMARK Airlines to Launch International Routes from 2014

2010-11-22T00:59:00.000+09:00

from Nikkei Shimbun, November 12, 2010

Skymark Airlines showed its plans to inaugurate international scheduled flights from Narita International Airport to three destinations of London, Frankfurt and New York, starting from 2014. The carrier, so far flying only domestic routes, will introduce six Airbus A380 for this venture and may introduce about half of legacy carriers.

Skymark's A380 will seat as many as 394 with business class accounting for 30%.

Skymark will decide to add 9 more A380s by seeing the performance of the first three routes for more expansion of international routes such as Paris, Los Angeles and Bangkok from Kansai and Chubu International Airports.

For Airbus, this order is the first of A380 in Japan where Boeing aircraft account for 80% in the market and may become a milestone for Airbus.

New Civilian Rescue Flying Boat from ShinMaywa Coming Up

2010-10-26T06:21:00.000+09:00

ShinMaywa (www.shinmaywa.co.jp) will look for future sales of its civilian version of US-2 flying boat, currently employed for search and rescue aircraft at Japan’s Defense Ministry, by setting a strategic unit price of 7 billion yen (about US$88 million) , 30% off the price of the original defense version.

Bombardier is its main competitor in commercial market; however,ShinMaywa’s is superior in the performance but less competitive in price tag; the Takarazuka, Hyogo-based company redesigns the standard equipments and its production processes to lower unit cost of the aircraft.

US-2 is currently used by Japan Maritime Self Defense Force for rescue mission as well as medical transport from remote islands. The flying boat can be turned to fire fighting aircraft as well. The company says it has received more than 70 inquiries to the aircraft from southeast Asian, European, and Middle Eastern countries.

US-2 is a follow-up of US-1 flying boat and its orgin dates back to 1960’s PS-1, anti-submarine patrol flying boat. ShinMaywa inherits the engineering experience of Kawanishi Aircraft, known for successful production of Type-2 flying boat, four-engine large type, used by the Imperial Japanese Navy during WW2 that once flew over Pearl Harbor for reconnaissance missions.

Specifications of US-2
Crew: 11
Length: 33.25 m
Wing span: 33.15 m
Max take-off weight: 47.7 t
Max take-off weight (waters): 43.0 t
Power plant: Rolls Royce AE2100J turboprop (4,591shp) x 4, LHTEC T800 for boundary controlling
Max speed: 315 kt
Cruise speed; 260 kt
Range: 2,500 nm (4,700 km)
Water take off length: 280 m
Water landing length: 310 m
Pressurized cabin
Glass cockpit

Incrediby Shrinking Japan Airlines

2010-09-01T22:22:00.000+09:00

from Sankei Shimbun August 30,2010 and others

Japan Airlines will submit its rehabilitation plans to the Tokyo District Court on August 31 upon approval of the cabinet ministers. On the same day at evening, Chairman Mr. Kazuo Inamori will meet the press conference with Ken Ohnishi, President with officials of Enterprise Turnaround Initiative Corporation of Japan (ETIC), serving as JAL’s receiver.

The plans call for 1) write-off of its debt of 521.5 billion yen (about $6 billion) by syndicate banks 2) new investment by ETIC 3) slashing of employees up to about 16,000 at group wide 4) abolish 45 routes, domesitc and international, by March 2011.

JAL has announced its plan to merger JALWAYS, its subsidiary operator as well as its accounting firm in this year.

JAL wishes to see its stocks relisted at Tokyo Stock Exchange by the end of 2012 after a further restructuring and increased corporate values. The airline hopes to repay 350 billion yen of public fund by selling its stocks. The district court will decide on the approval to the plans by the end of November.

Accotrding to JAL’s plans, the airline is considering to launch its own LCC subsidiary. Its rival ANA has issued its plans to start low cost carrier earlier in August.

ANA to Launch its LCC Subsidiary

2010-08-04T19:51:00.000+09:00

Reported by Mainichi Shimbun, August 2, 2010

    All Nippon Airways (ANA) will accept capital participation from various parties including non-Japanese airlines as well as investment funds for launching of its new affiliate low cost carrier. ANA plans to start operations of its new LCC brand in 2011 with airfare level as low as half of major airlines.
    ANA expects to collect capitalization over 50 billion yen (about 0.6 billion USD) in which ANA holds 50% as the biggest shareholder. Current regulations in Japan calls for constraining foreign capital participation at one third at highest, it is believed that ANA will welcome funds from foreign airliners and other funds around 20% mark. Whereas in domestic front, ANA will ask more numbers of travel agents and hotels that can make more synergy effect by joint founding of the new airliner.As for top executive of the new company, ANA wishes to head hunt anyone with robust experiences at LCCs outside Japan. ANA also studies feasibility to hire those pilots who were fired by JAL as a part of the airliner’s restructuring.
    ANA will ask the Japanese government to lower its landing fees at domestic airports as they are higher than international standard as well as other airport service costs.

Japan’s Private-Public Joint Space Business Mission to Visit Latin America

2010-07-28T05:43:00.000+09:00

From Nihon Kogyo Shimbun, 26 July 2010

The Ministry of Economy, Trade and Industries (METI) is going to organize a joint business mission with delegates of major private sector players to Latin America in order to sell Japanese satellite products for earth observation as well as communications and broadcasting. The mission will visit Brazil, Argentina and Peru for two weeks starting August 23. Its private sector members include NEC, IHI, Mitsubishi Heavy Industries joined by Fujitsu, Hitachi, Mitsubishi Corporation and JAXA.

Brazil and Argentina have potential market needs of satellite use for forest watching, agricultural management and harvest forecasting. Brazil, in particular, is going to start full-fledged development of radar-equipped satellite for all weather observation where Japanese side can appeal with their expertise.

JAL's Debt Ballons, Growing Distrust among Banks

2010-07-17T08:19:00.000+09:00

　The amount of excessive debt of Japan Airlines, under corporate rehabilitation process, has amounted to JPY1 trillion or US$1.11 billion level. The main reason of swallowing debt is attributed to book accounting to record the cost of disposal of older aircraft and other restructuring as ‘loss’. On the other hand, the former board members,those who were supposed to take responsibility of the collapse of the company, are found as serving as the board of JAL’s affiliated corporations; thus the distrust of bank syndicate has reached to its peak as they have been requested by JAL to abandon a part of their loans; it would be inevitable to foresee a hard time to reach their agreement within August.

A bank executive who was briefed by JAL on July 1 outburst-ed his emotion by saying ‘I cannot understand how come you added more amount to abandon by us.’

JAL’s excessive liabilities amounted to JPY 950 billion (approx USD 10.6 billion) on consolidated basis, higher than when the company filed for corporate rehabilitation process by JPY100 billion. Accordingly JAL wishes to ask the banks for debt waiver of extra 50 billion yen.

A reduction of personnel as a whole group, targeted 16,000 in total, calls for additional reserve of hundreds of billion yen for additional payment for their early retirement.

JAL is to receive public funding of 300-350 billion yen while the banking insertions are requested to abandon their liabilities. The airliner is obliged to announce publicly of their loss to keep transparency in return of receiving public fund, but the JAL has not disclosed the details yet.

Distrust feeling of the bank syndicate comes from not only increased amount of liabilities as requested. The former board of directors at JAL all quited as the company filed for bankruptcy but H. Nishimatsu, then-president, got a seat of president of JAL Foundation while some others got board members at JAL affiliated companies by June. An executive of the bank syndicate commented ‘A post of president is paid nothing but the post is honorable seat for those who completed all duties. Clearly the company lacks for sensitivity for how it would be perceived by the society.’

JAL’s liquidation process has protected general business liabilities such as aircraft leasing and fuel cost to ensure ‘continued operations’ and, in return, the rate of liability write off was set abnormally high.

In addition, JAL is requesting the banks of refinancing for replacement of its aircraft; currently the company has submitted a JPY 360 billion plan that was reacted by the banks thinking JAL is asking too much.

JAL’s performance shows a steadfast recovery as shown in May when its international service utilization rate was 70.8%, an improvement by 14 points than the same month of the previous year.

Mitsubishi Aviation Will Start MRJ Production from September

2010-06-05T09:18:00.000+09:00

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

2010-05-15T09:10:00.000+09:00

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

2010-05-01T17:56:00.000+09:00

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

2010-04-27T20:57:00.001+09:00

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

2010-03-21T10:41:00.000+09:00

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.