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  • Energy & Environment
  • [FOCUS]Energy & Environment
  • Commercial Aviation & Transportation Systems
  • [FOCUS]Commercial Aviation & Transportation Systems
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  • [FOCUS]Integrated Defense & Space Systems
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  • [FOCUS]Machinery, Equipment & Infrastructure

Image:Commercial Aviation & Transportation Systems

Supplying advanced transportation systems and services for land, sea, and air applications

Commercial Aviation & Transportation Systems

Commercial Aviation & Transportation Systems delivers advanced land, sea, and air transportation systems, including commercial airplanes and ships, as well as land transportation systems. MHI moves society, supporting its transportation and logistics infrastructures with superior safety, guaranteed quality, and reliability backed by technology.

SWOT Matrix

Image:SWOT Matrix

Basic Strategies

  • Growth strategy deployment
    Create new business model, new markets
  • Structural reforms
    Reinforce and promote strengths in program management and system integration
  • Business structure reforms
    Thoroughly transform structures for problematic businesses

photo:Yoichi Kujirai
We are creating a new business model that reinforces strengths tailored to our target markets in various fi elds of operation and leverages synergies, enabling us to cultivate new business areas.
Yoichi Kujirai
Domain CEO, Commercial Aviation & Transportation Systems

photo

photo:Courtesy of Mitsubishi Aircraft Corporation
Courtesy of Mitsubishi Aircraft Corporation

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Fiscal 2013 in Review

On a consolidated basis, orders received in fiscal 2013 fell below the previous year’s level, to ¥360.3 billion. Reasons for the decline included a lack of orders for the Mitsubishi Regional Jet (MRJ), compared with substantial orders in the previous year. Also, orders for commercial ships fell from 29 ships in fiscal 2012, to eight in fiscal 2013, due to delays in negotiations on liquefied natural gas (LNG) carriers that caused orders anticipated for fiscal 2013 to move into the following fiscal year.

Consolidated net sales in this domain rose, to ¥463.6 billion. Although sales of commercial ships were down, deliveries related to commercial airplanes increased to 99 for Boeing 777 aircraft and 78 for Boeing 787s. These figures represent yearon- year increases of nine and 26 aircraft, respectively. Operating income decreased, to ¥18.3 billion, due to a decline in the profitability of commercial ships that outweighed the positive influences of improved production efficiency in commercial airplanes and yen depreciation.

Graph:Orders Received / Net Sales / Operating Income

Operating Environment

With the global volume of air passenger traffic growing every year, demand for commercial airplanes remains robust. Lowcost carriers (LCCs) are advancing rapidly, and major airlines are placing replacement orders for airplanes offering improved fuel efficiency. Consequently, orders remain strong, and aircraft manufacturers are faced with long order backlogs.

Particularly in Asian countries, measures to improve urban transport moved forward, prompting new investment in rail infrastructure as a mode of transport having relatively low environmental impact.

Although the overall market for new ships is contracting, increased use of natural gas is boosting orders for LNG carriers. Demand is also rising for ships offering enhanced environmental performance, reflecting the need for ships with lower fuel consumption and reduced emissions, as well as an overarching interest in preserving marine ecosystems and decreasing environmental impact.

Initiatives for Growth over the Medium to Long Term

In the commercial airplanes business, we are developing production systems in preparation for increased production. We are also building a global supply chain and working to improve profitability by transforming our production systems. At the same time, we are gearing up for expanded MRJ orders and putting in place a mass-production system. We are making steady progress on the development of this next-generation regional jet, which offers superb fuel economy, environmental performance, and cabin comfort. The jet’s maiden flight is scheduled for 2015, and we plan to commence deliveries in 2017.

In the transportation systems business, we are conducting broad-based sales efforts in the Middle East, Southeast Asia, Brazil, and North America that are designed to bolster our global market competitiveness.

We are seeking to differentiate ourselves in the commercial ships business by concentrating on sophisticated and highvalue-added ships such as the Sayaendo, our next-generation LNG carrier that employs proprietary MHI technologies. We are also undertaking efforts to reinforce our engineering business and commercialize our overseas shipbuilding business.

Key Projects
Announcement Delivery Project
July 2014 2018 MHI Receives Order for 18 New Train Cars for Three Automated Guideway Transit (AGT) Systems at Orlando International Airport
July 2014 2018 Air Mandalay of the Republic of Myanmar Places Order for 10 MRJ90 Aircraft (Firm Orders for Six, Purchase Rights on Four)
July 2014 2019 Eastern Airlines of the United States Signs MOU for 40 MRJ90 Aircraft (Firm Orders for 20, Purchase Rights on 20)
June 2014 2017 Engines Mounted on MRJ’s First Flight Test Aircraft
January 2014 2017 MHI Receives Follow-up Order for 48 More Cars for the Macau Light Rapid Transit System
October 2013 - Consortium of Five Japanese Companies to Acquire Stake in ECOVIX Engevix Construções Oceânicas S.A., a Major Brazilian Shipbuilder
June 2013 2016 MHI Receives Order from Taiwan High Speed Rail Corporation for Nangang Extension Project

Strategic Business Unit (SBU)

  • Commercial Ships
  • Land Transportation System
  • Boeing Sustaining
  • Boeing 787
  • Bombardier
  • MRJ
  • Commercial Aero Engines
  • Established Commercial Airplanes
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