The Financial Times (3/28, Soble) reports, "Japan is likely to go ahead with plans to build its first passenger jet after All Nippon Airways (ANA) said yesterday that it had placed a conditional order with Mitsubishi Heavy Industries for up to 25" of Mitsubishi's proposed MRJ, "a 70-90 seat regional jet." The Times explains that while "Mitsubishi has not officially committed to commercial production...ANA's public announcement suggests a decision to go ahead has been made," some analysts say.

The New York Times (3/28, C3, Jolly) adds that, according to ANA, "replacing its Boeing airplanes with the Mitsubishi jets," is "expected to bring about a 40 percent savings in fuel, and increase revenue by five billion yen a year." Mitsubishi has said that it needs to sell about 350 of the aircraft to meet its costs; some analysts have suggested that the true number is higher. However, "an expansion of Tokyo International Airport, also known as Haneda, scheduled for 2010 will give carriers the opportunity to add to their networks."

The AP(3/28) notes, the MRJ "faces tough competition from Bombardier Inc. of Canada, Brazil's Embraer SA and companies in China and Russia developing midsize jets." Overall, however, "demand for smaller jets is expected to rise over the next 20 years in regional markets." The AFP (3/28) also reports the story.