BEIJING, March 29 -- Mitsubishi Heavy Industries is going ahead with its mid-sized regional jet - the first "made-in-Japan" passenger aircraft in three decades.

    The announcement from the company President Kazuo Tsukuda came yesterday, a day after major Japanese carrier All Nippon Airways placed the first orders for the twin-engine aircraft that seats about 70 to 90 people.

    ANA ordered 15 of the jets from Mitsubishi Heavy Industries Ltd on Thursday for delivery from 2013, with an option for 10 more.

    Mitsubishi, a Japanese machinery maker, has been testing out the response to the jet, which would face tough competition from Bombardier Inc of Canada, Brazil's Embraer SA and companies in China and Russia developing mid-sized jets.

    Tsukuda said the project must include government commitment because of its potential importance to the nation's economy as well as its great risks. But he said the jet has the potential to contribute to Japan's technological prowess.

    "We believe the aerospace business will be a pillar of our nation's industrial might," he said at Tokyo headquarters.

    The Mitsubishi Regional Jet, or MRJ, is a lightweight carbon-fiber composite jet designed to consume about 20 percent less fuel than comparable standard jets.

    Mitsubishi officials said its fuel efficiency is an asset at a time when fuel prices are soaring and the aircraft is also designed to reduce noise, as well as be comfortable for passengers.

    Demand for smaller jets is expected to rise over the next 20 years in regional markets. Mitsubishi's main target markets are North America, Europe and Japan. Tsukuda acknowledged challenges remain because the company has yet to receive launch customers other than ANA, although it approached some 100 airlines.

    But he sounded upbeat, saying that response had been good from carriers in the United States, Southeast Asia and other regions. He is counting on "government support" but did not give an amount for the cash or other specifics.

    Japan Airlines, the nation's other major carrier, is considering the MRJ but won't order any for now as it has ordered 10 Embraer 170 jets.

    Mitsubishi officials said they were hopeful JAL will order the jet a few years down the road.

    Mitsubishi is setting up a joint venture for the jet project, capitalized at three billion yen (US$30 million). That will eventually be raised to 100 billion yen.

    The jet will be Japan's first nationally funded, domestically made passenger aircraft project since the YS-11, a turboprop that was discontinued in 1973.

    ANA, which said the MRJ was chosen for reasons of safety, economy, passenger comfort and performance, estimated the value of its order at 60 billion yen.    

    (Source: Shanghai Daily/Agencies)