Mitsubishi Heavy exec: timing not right for decision on passenger jet market

TOKYO (Reuters) - A Mitsubishi Heavy Industries executive said Thursday that despite the government's commitment to made-in-Japan aircraft, now is not the time to decide whether to re-enter the commercial airplane market, after the failure of the SpaceJet.

The Japanese engineering conglomerate will utilise the human resources and technology developed in the SpaceJet programme for other aerospace and environmental businesses, said Hiroyuki Koguchi, senior vice president in charge of commercial aviation.

Mitsubishi Heavy last year terminated the SpaceJet regional commercial airplane project after delivery delays due in part to difficulty obtaining necessary certifications.

Japan's industry ministry, however, this year said it would carry on a 4 trillion yen ($24.9 billion) public-private project to create a next-generation passenger aircraft after 2035.

Mitsubishi Heavy would like to discuss concrete steps on the future aviation strategy with the government, but "we're now in a phase to lay the groundwork for that, and not in the timing to decide on whether to resume the aircraft assembly business," Koguchi told an annual shareholder meeting.

($1 = 160.4600 yen)

(Reporting by Kantaro Komiya; Editing by Gerry Doyle)