=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/n/a/2005/10/26/financial/= f021132D59.DTL --------------------------------------------------------------------- Wednesday, October 26, 2005 (AP) Airbus Rejected by Japan's Manufacturers By YURI KAGEYAMA, AP Business Writer (10-26) 03:23 PDT TOKYO, Japan (AP) -- Japan's top three manufacturers have so far rejected offers from Airbus = of contract work on the planned A350 jets, citing their order commitments to rival Boeing Co., Airbus Chief Executive Gustav Humbert said Wednesday. Airbus was still hopeful Mitsubishi Heavy Industries Ltd., Fuji Heavy Industries Ltd. and Kawasaki Heavy Industries Ltd. may change their minds, he said at a seminar for executives at a Tokyo hotel. The Japanese manufacturers make components for Boeing planes — including the wing for the new 787 — and are heavily involved in the design of the aircraft as well. The European aircraft maker will be talking with other smaller Japanese companies to try to draw their interest in a partnership, he said. "We are open. We have left the door open," Humbert said. Airbus SAS, while gaining the lead worldwide in aircraft deliveries the last couple years, has struggled in Japan, where manufacturers have a decades-long relationship with Boeing. Airbus, based in Toulouse, France, controls 62 percent of the airplane market in Europe, 49 percent in America and 55 percent in the Asia Pacific region, but only 4 percent of the Japanese market. Chicago-based Boeing is striving to beat European rival Airbus SAS on new commercial jet deliveries this year for the first time since 2000. Boeing expects to deliver 320 airplanes this year, and Airbus expects to deliver 370. But Boeing leads in firm orders this year with 616 orders, compared with 407 orders for Airbus. Because of the time it takes to build airplanes, deliveries lag orders by a considerable gap. Neither Japan Airlines nor All Nippon Airways, Japan's top carriers, have placed orders for the Airbus "superjumbo" A380, set for delivery late next year. "It is only in Japan we still have a challenge," Humbert said. The mid-sized A350, seats 253 passengers, while the double-decker A380, can carry 555 passengers. The A350 is set to enter service in 2010, is designed to compete against Boeing's 787. Airbus has been hard at work recently to woo both Japanese airlines and manufacturers away from loyalty to Boeing at a time when the market for large aircraft has only two players. Earlier this year, Airbus appointed former U.S. trade negotiator Glen Fukushima to head Airbus Japan in an effort to strengthen its business here. Getting Japan's powerful manufacturers to work on jets is considered likely to give aircraft makers an edge in winning contracts with the nation's airlines, although the government denies any pressure is placed on such contracts. Japan's big manufacturers are heavily involved in the design and manufacturing of Boeing aircraft, particularly the new 787 Dreamliner, a smaller fuel-efficient jet. But Humbert said cooperation with manufacturers will rise on aircraft in the works from Airbus that will follow A350, and Airbus remains eager to court the Japanese. Twenty-one Japanese companies are doing work on the A380, but their involvement is not as great as the Japanese collaboration on Boeing aircraft. Mitsubishi Heavy, which is making cargo doors for the A380, is designing and building the wing for the 787 — the first time a company other than Boeing will do so. Humbert said he spoke with officials at Mitsubishi, Fuji and Kawasaki earlier this week but was told they had "fully booked their capacity" for Boeing's needs. Fuji and Kawasaki declined comment. A Mitsubishi spokesman said the company remains interested in doing work for Airbus while maintaining good relations with Boeing to expand its business but declined comment on the A350 talks. ---------------------------------------------------------------= ------- Copyright 2005 AP