JAL to fly Mitsubishi Regional Jet at home

TOKYO -- Japan Airlines will order the regional jet Mitsubishi Aircraft is readying for commercialization in 2017, with plans to cut fuel costs by replacing its old domestic fleet with the energy efficient aircraft.
     The airline is expected to announce the purchase Thursday. It will order 32 Mitsubishi Regional Jets, with the total price tag coming to 150 billion yen ($1.42 billion).
     Able to seat from 70 to 90 passengers, the MRJ, which uses carbon-fiber composite materials for the body, is expected to improve fuel efficiency by 10-20% from an existing counterpart. Rival All Nippon Airways has ordered 25 MRJs.
     JAL plans to use the jet in its domestic services operated by subsidiary J-Air, based out of Itami Airport in greater Osaka, starting in 2021. Currently, small aircraft from Canada's Bombardier and Brazil's Embraer are used for these routes.
     Although JAL will place orders for additional Embraer aircraft until the MRJ is ready for delivery, the plan is to have an all-MRJ fleet by around 2028.
     The passenger airline market in Japan has been lacking steam as the population shrinks and competition from shinkansen bullet trains intensifies, among other reasons.
     To enhance the convenience of its flight services, JAL is planning to adopt the MRJ on routes between regional cities -- replacing propeller-driven aircraft -- to shorten flight times. It is also considering using the MRJ to resume some services it discontinued around the time of its bankruptcy filing in 2010.
     Mitsubishi Aircraft had secured orders for 375 MRJs, including ones that come with cancellation options. JAL's order will bring the total to over 400, the minimum volume required to secure profitability. By taking advantage of the economies of scale, which will lower costs, the company will work to win more orders overseas.