（Nikkei） Aircraft Designed For SDF To Get OK For Civilian Exports

(There is much room for Japan's aerospace and defense industry to expand business both inside and outside Japan. Cheers, Kosuke)

Monday, March 22, 2010

Aircraft Designed For SDF To Get OK For Civilian Exports

TOKYO (Nikkei)--The government has decided to let cargo planes and some other aircraft developed for the Self-Defense Forces be exported for nonmilitary use as a way of revitalizing a defense industry hit by a decline in spending, The Nikkei learned Sunday.

Civilian exports of the XC-2 may soon be cleared for takeoff.The move will initially cover three domestic aircraft models. The XP-1 patrol plane and the XC-2 cargo plane, both co-developed by Kawasaki Heavy Industries Ltd. (7012) and the Defense Ministry, are undergoing flight tests. The US-2, produced by ShinMaywa Industries Ltd. (7224) for air-sea rescue work, is already being used by the Maritime Self-Defense Force.

Both Kawasaki Heavy and ShinMaywa had envisioned civilian use of these aircraft from the development stage. The XP-1 can be outfitted as a regional passenger jet, and the US-2 can be used for firefighting.

The Ministry of Economy, Trade and Industry estimates global demand for 100- to 150-seat passenger planes like the XP-1 at 9,400 units over the 20 years through 2027. And demand for large cargo planes similar to the XC-2 is projected to almost triple from current levels by that year.

METI also anticipates demand to replace firefighting aircraft in France, Spain and Italy over the next five years.

The government is pushing civilian use of aircraft designed for the SDF because the nation's defense spending continues to decline and aircraft prices are rising. By selling the aircraft to the private sector, the Defense Ministry expects to cut per-aircraft introduction costs and recoup a portion of development costs.

A study group of officials from relevant ministries will be formed as early as next month to discuss civilian use of the XP-1, the XC-2 and the US-2. Because these planes use mostly nonmilitary components, the government determined that the move would not violate rules banning the export of weapons.

(The Nikkei March 22 edition)