The global economic slowdown looks likely to accelerate the steady shift in the aircraft maintenance, repair and overhaul industry to developing Asian countries. More immediately, the region’s MRO shops are also better placed to cope with the slowdown than are North American and European operators, although they will not be able to completely avoid foreign price competition from hard-pressed Western MRO providers if and when the market sags.

Fuji Heavy Industries is adopting production techniques from its Subaru car division to cut costs and help break into business jets and win a share of the 737 and A320 replacement programs. A head-to-head competition with Mitsubishi Heavy Industries looks likely, with Fuji stating its strategy is to specialize in wing production. Mitsubishi is also aiming to become a wing specialist, as well as a builder of complete aircraft (AW&ST Sept. 15, p. 28).

Mitsubishi Aircraft is close to deciding whether to allocate work on its MRJ regional jet to fellow Japanese manufacturers Fuji and Kawasaki Heavy Industries, but is warning that the decision will be strictly commercial, not based on any sense of patriotic duty. President Nobuo Toda expects to book more orders for the Mitsubishi Regional Jet before the end of this year. The company, majority owned by Mitsubishi Heavy Industries, has been set up to build the 70-90-seat jetliner.