1540 1620 Mrj How to Estimate Mtce Costs

- 1 -

DISCLAIMER: This document and all information contained herein is the sole property of Mitsubishi Aircraft Corporation (“Mitsubishi Aircraft”), and shall not be (a) used for any

purpose other than that for which it is supplied or (b) reproduced or disclosed in any way to any third party, in each case, in whole or in part, without Mitsubishi Aircraft’s prior written

consent. No rights or licenses under any intellectual property right in or to any information contained herein are granted by the delivery of this document or the disclosure of its contents.

This document and all information contained herein is provided for informational purposes only and is subject to change. In addition, the information herein may include certain

statements, estimates, targets and projections that reflect significant assumptions and subjective judgments by Mitsubishi Aircraft concerning anticipated results that may or may not prove

to be correct and there can be no assurance that any such statements, estimates, targets or projections are attainable or will be realized. No statement herein (or the acceptance thereof)

shall constitute any contractual offer by, nor create any obligation on the part of, Mitsubishi Aircraft. Mitsubishi Aircraft hereby expressly disclaims all representations or warranties,

express or implied, with respect to the information contained herein.

MITSUBISHI AIRCRAFT PROPRIETARY

How to Estimate Maintenance Cost for an Aircraft before its First Flight

Yugo Fukuhara Director, Marketing

Mitsubishi Aircraft Corporation October 18th, 2012

- 2 - –MITSUBISHI AIRCRAFT PROPRIETARY– This document does not constitute an offer of any kind and

no assurances are given as to the information contained herein.

Contents

The Company and the MRJ

Maintenance Cost Estimation

before First Flight



The Company and the MRJ



36% 64%

Mitsubishi Aircraft Corporation

Invest

Capital : ¥100 billion ($1.0billion)

Americas Office (Addison/Dallas) Europe Office

(Amsterdam)

Headquarters (Nagoya)

Tokyo Office

Aerospace Shipbuilding &

Ocean Development

Machinery &

Steel Structure

Power

Systems

© JAXA



MRJ Family

MRJ100X (Plan)

MRJ90

MRJ70 78 seats

92 seats

100 seats



State-of-the-Art Technologies

Composite

Structure

(Empennage)

New GTF Engine

Human-Centered Flight Deck & FBW Technology

High Aspect Ratio Wing &

Advanced Aerodynamics (CFD Design & Low Noise Airframe)

Passenger-Oriented Cabin



Airlines

Most Efficient

Aircraft

MRJ Key Features

Environment

Lowest Fuel Burn,

Noise, Emissions

Passengers

Most Comfortable

Cabin



Major Milestones

Mar 2008 Launch

Apr 2009 Preliminary Design Review

Sep 2010 Critical Design Review

Sep 2010 First Metal-Cutting – Start of Production

Apr 2011 First Riveting – Start of Assembly Work

Apr 2012 PW1217G Engine First Flight

2013 First Flight

2015 First Delivery



MRJ Order Status

Firm/Pending Option

ANA 15 10 Trans States

Holdings 50 50

ANI Group

Holdings 5 -

SkyWest, Inc. 100 -

Total 170 60

230



Maintenance Cost Estimation before First Flight



Maintenance Cost – Second Largest Element in COC

Cash Operating Cost (COC) Breakdown

* Typical regional jet, US regional operation, 500nm Trip, Fuel Price=$3.0/USG



“Designing” Maintenance Cost of New Aircraft

Existing Aircraft

Maintenance

cost data

Target for

new aircraft

Competitor’s

Maintenance Cost

• Maintenance cost benchmarking is essential to establish a target

for an aircraft under development

• U.S. DoT Form 41 is one of the useful database for benchmarking

U.S. DoT

Form 41 Publications



U.S. DoT Form 41 Financial Data

• Published data collected by U.S. Department of

Transportation

• Includes maintenance cost data of all airlines in the U.S.

• Quarterly cost data by aircraft type by airline

• Huge database publicly available online from 1990 in a

consistent format

• No influence from currency exchange rate



Normalization of DoT Form 41 Data

• Aircraft age

• Outsource/In-house ratio

• Labor rates

• Average flight time



Normalized Maintenance Cost from DoT Form 41

* 100% in-house maintenance, Labor Rate $50/MH, 1.5FH/FC, Mature

0

100

200

300

400

500

600

700Material ($/FH)

Labor ($/FH)

Airframe Maintenance

cost($/FH)

Limited available data

Aircraft

Maintenance

Cost

($/FH)

• DoT Form 41 data was processed and aggregated by aircraft family



Model Adjustment – Family Aircraft

• Aircraft families (e.g. 737-700 and 737-800) have many common

systems which have almost the same maintenance cost

• Maintenance costs for each type are estimated by analyzing

specification differences between family aircraft

Same

• Avionics

• APU

• Wing

• Empennage

• Landing Gear

• Electrical &Mechanical

components, etc.

MRJ90

MRJ70

Different

• Fuselage length

• Cabin length

• Weight, etc.



Maintenance Costs for Benchmarking

• MRJ target cost is established to be lower than competition

Aircraft

Maintenance

Cost

($/FH)


0

50

100

150

200

250

300

350

400

CRJ200 ERJ145 CRJ700 CRJ900 CRJ1000 E170 E175 E190 E195

Material ($/FH)

Labor ($/FH)



MRJ’s Low Maintenance Cost by Design

• State-of-the-art technology for cost reduction

- Composite material

- Full Fly-by-Wire

- LED/HID lighting

• Maintainability validation by digital & physical

mockups

• MSG-3 Analysis feedbacks

to MRJ design

• Maintenance interval

extension plan after EIS



Designing Maintenance Cost – Bottom-Up Approach

On-Airplane Off-Airplane

System

（ATA 21 - 49）

“Airframe”

Maintenance

Cost

(Line/A/C/D-

check)

“Component”

Maintenance

Cost

Structure

（ATA 51 - 57） (Mixed)

• Aircraft Maintenance Cost

= Airframe Maintenance Cost + Component Maintenance Cost



Airframe Maintenance Cost


System “Airframe”

Maintenance

Cost

(Line/A/C/D-

check)

“Component”

Maintenance

Cost

Structure (Mixed)

Maintenance Program

Analysis

• Analyzing maintenance program

• Collecting field data for estimation

• Task card MH / Actual

Labor MH

• Routine / Non-routine

• Labor cost / Material cost



Component Maintenance Cost


System “Airframe”

Maintenance

Cost

(Line/A/C/D-

check)

“Component”

Maintenance

Cost

Structure (Mixed)

Supplier cost data

• Avionics

• Landing Gear

• Brakes

• Wheels & Tires

• APU

• Other components

• Collecting & analyzing maintenance cost information from

system suppliers



Major Partners of MRJ

Engine Electrical Power, Air Management, APU,

Fire Protection Avionics

（Incl. Flight Control Computer）

Flight Control Actuator

Sumitomo Precision Product

Landing Gear Slats, flaps,

belly fairing,

rudder,

elevator AIDC

Hydraulic System

Pylon Main Structure

Flight Deck

Final Assembly

Passenger, service

and cargo doors

Payload Systems



MRJ Maintenance Cost by Year by Event

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Year

Line Check A-Check C-Check D-Check Brake

Tire & Wheel Landing Gear APU Other Components



Aircraft Maintenance Cost Comparison


Aircraft

Maintenance

Cost

($/FH)

0

50

100

150

200

250

300

350

400

MRJ70 MRJ90 CRJ700 CRJ900 CRJ1000 E170 E175 E190 E195



Summary

• Maintenance cost is the second largest element

in cash operating cost

• U.S. DoT Form 41 is useful data to benchmark

the maintenance costs of the competition

• MRJ is designed to achieve lower maintenance

cost



http://www.mrj-japan.com/

Mitsubishi Regional Jet, a new concept from Japan for the skies of the world.



Legend

This document and all information contained herein is the sole property of Mitsubishi

Aircraft Corporation (“Mitsubishi Aircraft”), and shall not be (a) used for any purpose

other than that for which it is supplied or (b) reproduced or disclosed in any way to any

third party, in each case, in whole or in part, without Mitsubishi Aircraft’s prior written

consent. No rights or licenses under any intellectual property right in or to any

information contained herein are granted by the delivery of this document or the

disclosure of its contents. This document and all information contained herein is

provided for informational purposes only and is subject to change. In addition, the

information herein may include certain statements, estimates, targets and projections

that reflect significant assumptions and subjective judgments by Mitsubishi Aircraft

concerning anticipated results that may or may not prove to be correct and there can be

no assurance that any such statements, estimates, targets or projections are attainable or

will be realized. No statement herein (or the acceptance thereof) shall constitute any

contractual offer by, nor create any obligation on the part of, Mitsubishi Aircraft.

Mitsubishi Aircraft hereby expressly disclaims all representations or warranties,

express or implied, with respect to the information contained

Documents

1540 1620 Mrj How to Estimate Mtce Costs