Paul Lewis/SINGAPORE

JAPAN'S AEROSPACE industry is seeking more than '10.3 billion ($93 million) in Government subsidies and soft loans in 1997 to support its planned participation in the development of the Boeing 747-500/600X derivatives.

The country's three main manufacturers (Fuji, Kawasaki and Mitsubishi Heavy Industries) are negotiating a supplier-partnership-type arrangement with Boeing, similar to that agreed to for the 777. Japanese industry is reportedly discussing the idea of taking a 15-20% stake in the proposed 747- 500/600X programme.

Japanese involvement would be focused on the development of a new larger wing for the two 747-growth derivatives.

Local reports say that it is interested in the design and manufacturer of the leading and trailing edges, including the flap system.

The three Japanese concerns are already involved to a much lesser extent with the 747-400, supplying the aircraft's inboard and outboard trailing-edge flaps, spoilers and ailerons. Japanese industry has been taking an increasingly larger role in Boeing programmes since the early 1980s, producing 15% of the 767's airframe and 20% of the 777's airframe.

Japanese industrial involvement in the new 747 programme, with the financial support of the Government, is seen as important for local sales prospects. Japan Airlines and, in the longer-term, All Nippon Airways are viewed as potential buyers.

The Ministry of International Trade and Industry (MITI) is requesting an initial '600 million in funding for the 747-500/600X programme as part of its fiscal year 1997 request. It is asking for a further '9.7 billion loan from the Japan Development Bank.

MITI's aerospace budget request for 1997 totals '12.9 billion in direct subsidies, supplemented by '14.8 billion in bank loans. It is seeking a further '6.4 billion for continuing 777 development work and '2.15 billion to underwrite Japan's 30% share in the General Electric CF34-8C growth engine programme.

Other major budget items include '3.7 billion for the HYPR combined cycle ramjet/turbo engine, '1.5 billion to support Japan's 23% stake in the International Aero Engine V2500 programme and '250 million towards development of future air-navigation-compatible avionics.

MITI has asked for '400 million more to support Japan's long-running YS-X regional-jet feasibility study, although local sources suggest that this funding may now be switched to supporting Mitsubishi's planned two-year joint study with Bombardier of a 90- to 120-seater. It plans to allocate another '300 million to the supersonic transport study and '50 million to begin looking at a possible joint Asian commuter aircraft.

Source: Flight International