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MRJ90

Japan’s first commercial jetliner, the Mitsubishi Regional Jet (MRJ) 90 took to the skies at 8:30 in the morning from Japan’s Nagoya airfield, for a flight that lasted nearly 85 minutes long. The flight was conducted by a MRJ 90 STD, registered JA21MJ, with construction (serial) number 10001. The aircraft flew with a constant flap setting, landing gear down and locked, and thrust reversers de-activated.

The first flight marks a major milestone for a program that is significantly delayed. The first flight was planned for 2012.

The 92 seat MRJ 90 has a seating capacity that directly competes with the 88 seat Embraer E175, and the 90 seat Bombardier CRJ 900. However, the aircraft is fitted with Pratt & Whitney’s high bypass Geared Turbofan Engines (GTF), which allow the aircraft superior fuel economics than any sub-100 seat regional jet, today. This is the MRJ 90’s USP.

Below is a comparison of key performance, weights and dimensions between the Bombardier CRJ900, Embraer E175, and the Mitsubishi MRJ 90:

Key Performance, Weights, Thrust, Dimensions MRJ CRJ E175

Below is the comparison of ranges between all three aircraft and their sub variants:

 CRJ_E715_MRJ ranges

The last Japanese commercial airliner program was the YS-11 turboprop airliner, in 1960. The MRJ program, which marks a comeback of the Japanese airliner market after a gap of nearly 60 years, adds an additional player in the regional jet market.

The regional jetliner market today is dominated largely by Embraer and Bombardier, with Embraer grabbing a larger share of the pie. Sukhoi’s Superjet International SSJ 100, a 100 seat regional jetliner, is so far an insignificant player. China’s regional jet, the ARJ 21, hasn’t yet entered service. Mitsubishi becomes the fifth player.

However, Mitsubishi will be the third aircraft program to penetrate the United States Market. 76% of the MRJ 90’s firm orders are from airlines in the United States. 170 aircraft are ordered by three US regional airlines: Trans States Holdings (a holding company for three regional airlines), Sky West, and Eastern Airlines.

A new aircraft brings with it two key questions that affect sales : How reliable will the aircraft be, and how good with the customer support be?

A new aircraft will almost always have issues with reliability before the aircraft ‘matures’ and corrections are made to the production aircraft. This has been seen with the Boeing 787, the Embraer E190 (when it entered service with JetBlue), the Airbus A380 – all new airplanes have their fair share of troubles till the product matures. The MRJ 90 will be no exception.

Customer support, which can sway market shares, has been carefully dealt with, by MRJ. Boeing Commercial Aviation Services, which today is one of the best, will provide Mitsubishi Aircraft with 24/7 customer support including spare parts provisioning, service operations and field services, until Mitsubishi takes service in-house.

Another important aspect for an airplane is the residual value of the aircraft – data that is yet unavailable. Lessors prefer to bet on airplanes that they know for certain will have a good enough market residual value to capitalise on.

Is the MRJ 90 in a good segment?

The MRJ 90 is an airplane with better market prospects than the MRJ 70. Since the beginning of 2009, Embraer has recorded 0 net orders for the 78 seat EMB170 regional jet, and Bombardier has recorded just 28 net orders for the 78 seat CRJ 700. On the other hand, since beginning 2009, Embraer has recorded a net 443 orders for the 88 seat E175 and E175E2 together, and Bombardier has recorded 139 net orders for the 90 seat CRJ 900. The 90 aircraft market has had better prospects over 27 quarters than any other size of regional jets. Below are the order graphs:

Bombardier Orders

Embraer Orders

The MRJ 90 is in a very hot segment, which can get hotter if scope clauses in the United States are upward revised. The clause today limits US regional airlines to an aircraft weighing no more than 39 tonnes and limited to 76 seats. Unfortunately, the MRJ 90’s minimum maximum takeoff weight is 39.6 tonnes, while the lighter variants of the CRJ 900 and EMB 175 are within this specification.

The MRJ 90 is in a very unique position. Bombardier is not neither developing nor re-engining aircraft that are below 100 seats. The CRJ 700, 900 and 1000 aircraft will soon fade away as Embraer re-engines its aircraft and revises the wings to offer the market better versions (second generation) of the present E175, E190, and E195 regional jet models. Bombardier’s customer support history also works against the manufacturer. This effectively reduces notable competition to just Embraer and Mitsubishi in the sub-100 seat regional aircraft space.

The second generation of the Embraer E175, renamed the E175 E2, will be fitted with engines similar to the MRJ90, matching the MRJ 90’s fuel economics. However, the E175 E2 is expected to enter service only in 2020.

The MRJ 90 on the other hand is expected to enter service in 2017. However, uncertainty looms about the manufacturer sticking to its timeline, as it has not had any proven track record of dealing with jetliner programs in the recent past. Bombardier, an experienced manuafcturer, has slipped the CSeries’ timelines. It will not be surprising if Mitsubishi does the same. But even if the timelines slip by a year, to 2018, Mitsubishi will have atleast a 2 years head start over Embraer in the sub-100 seat regional jet space.

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