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AIRSHOW-Mitsubishi wins $940 mln order to supply 20 of its regional jets

Published 2016-02-16, 02:07 a/m
© Reuters.  AIRSHOW-Mitsubishi wins $940 mln order to supply 20 of its regional jets
EMBR3
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BBDb
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7011
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* Signs $940 mln contract with U.S. leasing firm Aerolease
* Mitsubishi says no delay expected for delivery of first
MRJ
* Sees growing interest from clients after test flight

(Adds comments from executives)
SINGAPORE, Feb 16 (Reuters) - Mitsubishi Aircraft Corp, a
unit of Mitsubishi Heavy Industries Ltd 7011.T , has struck a
deal to supply 20 regional jets to U.S. leasing firm Aerolease,
its first agreement with a lessor.
The Japanese firm has struggled with multiple delays in its
effort to enter the regional jet market, currently dominated by
Canada's Bombardier Inc BBDb.TO and Brazil's Embraer SA
EMBR3.SA .
Mitsubishi said the letter of intent signed with Aerolease
for the jets, worth about $940 million, would be converted into
a definitive contract in the next month or so, lifting the total
number of orders for the Mitsubishi Regional Jets (MRJ) to 427,
including 233 firm orders and 170 options.
The company said it had seen increased interest from
potential customers after its first flight test concluded.
"After the first flight, we feel the interest from potential
customers is increasing," Hiromichi Morimoto, president of
Mitsubishi Aircraft Corp, told reporters after announcing
Aerolease's order at the Singapore Airshow.
Morimoto added that some potential clients in Asia Pacific
had sent in detailed enquiries.
"Asia Pacific region is promising for us, for regional jets.
We are right now working really hard on sales promotion in the
Asia Pacific region," Morimoto said.
Morimoto did not expect further delays in the delivery of
its first MRJ, which is slated for middle of 2018, after
announcing late last year that the delivery would be pushed back
for a year.
The $47 million, 100 seat MRJ, which made its maiden test
flight in November, represents Japan's long-held ambition to
re-establish a commercial aircraft industry.
"We have much more confidence than before," said Yugo
Fukuhara, vice president and general manager of sales and
marketing.
"Still, we still have a very big challenge, but I think we
can overcome the challenge."

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