Eyes on Mitsubishi Heavy as Japan floats low-emission jet dream

But breaking into Boeing-Airbus duopoly requires more than technology, experts say

Mitsubishi Heavy Industries' shares are near an all-time high, but investors worry it may face pressure to join a government-proposed passenger jet development program, with all the complications that would entail. (Nikkei montage/Source photo by Kyodo)

MITSURU OBE, Nikkei Asia chief business news correspondent

May 12, 2024 17:35 JST

TOKYO -- Japan's late March announcement that it aims to launch a program to make jets with radically reduced emissions in 2035 through international collaboration landed like a thud. Investors sold off aerospace-related stocks, with Mitsubishi Heavy Industries (MHI), the nation's top aerospace and defense contractor, falling more than 3% on the day.

Just over a year earlier on Feb. 7, 2023, MHI had scrapped its SpaceJet passenger jet after spending 1 trillion yen ($6.3 billion) and suffering six postponements since starting in 2008. CEO Seiji Izumisawa cited lack of experience in obtaining aircraft safety certification, repeated delays and insufficient resources for the decision. On April 1 this year, MHI said it would liquidate SpaceJet-related assets.