Boeing to invest in Japan's Mitsubishi jet

Tokyo, July 4: Boeing Co. may invest in Mitsubishi Heavy Industries Ltd's project to build Japan's first passenger jetliner, the Asahi newspaper reported on Wednesday.

The two firms have an agreement to cooperate in certain fields, including the Mitsubishi jet, but have not announced details.

Boeing, which dominates commercial jet sales in Japan, places much strategic importance on maintaining its close ties with Japanese aircraft parts manufacturers and airlines.

Mitsubishi Heavy, the nation's biggest machinery maker, is one of the key suppliers for Boeing's new 787 Dreamliner.

The Asahi said Mitsubishi Heavy was now in talks with Boeing that include financing, quoting Nobuo Toda, head of the company's aerospace division.

Trading houses, financial institutions and the government may also invest in the project.

The Japanese firm also expects Boeing to help with developing a sales strategy, maintenance and pilot training, Toda was quoted as saying.

Between 10 to 20 carriers visited Mitsubishi Heavy's display at the Paris air show in June, with U.S. and European firms showing strong interest, he also said.

The jet will come in 72-seat and 92-seat versions and is part of a larger effort by Japan to develop aircraft that are more fuel efficient and make less noise.

Kawasaki Heavy Industries Ltd. is set to begin production of a C-X military transport plane for Japan's armed forces next year, and if tests go well it has said it may begin work on a civilian version.

Mitsubishi Heavy will make a decision on the jet's commercial viability by April, the end of the business year. If it goes ahead with the project, the company aims to start production in 2012.

The company said it was not able to immediately confirm the content of the interview.

Reuters>