Mitsubishi Heavy Industries is urging Boeing to let it set up a final assembly line in Japan for the 737 replacement program, arguing that the line would help support local customers. The company does not want to take over all final assembly, says Kiyotaka Ichimaru, general manager of Mitsubishi’s civil aircraft division, clarifying other industry executives’ comments reported on AviationWeek.com Sept. 30. Instead, Mitsubishi would help carry the final-assembly burden of what would probably be a massive, high-rate production effort.

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).