Toyota : Reaching towards sky with passenger jet career

After winning the roads, now it’s time to win the sky. Last wedenesday, Japan’s world famous auto-maker, Toyota Company, declared to invest 10 billion yen ($96 million) in Mitsubishi Aircraft Corporation, a unit of Mitsubishi Heavy Industries. The company will produce Japan’s first passenger carrying, fuel efficient jet planes. The latest press release from Toyota stated that it accepted an increased share of 10 billion yen planned by Mitsubishi Aircraft Crop. through a third party allocation. AFP reports:

Mitsubishi Aircraft is initially capitalised at three billion yen. But the capital is scheduled to be eventually raised to 100 billion yen with Mitsubishi Heavy sharing two thirds.

When Mitsubishi Heavy announced the project on March 28, it said it hoped to secure financial support to cover the remainder from Japanese companies including Toyota, Mitsubishi Corp., Mitsui & Co. Ltd. and Sumitomo Corp., along with the government-controlled Development Bank of Japan.

The Nikkei newspaper reported Wednesday that Mitsubishi Aircraft will increase its shares by 67 billion yen -- 6,700 shares worth 10 million yen each -- through a third-party allocation on May 30.

The fuel efficient jet planes will go into action from 2013. Mitsubishi Aircraft Corp. started the production after receiving order of 25 jet planes from All Nippon Airways,Japan’s largest domestic airlines. Mitsubishi Aircraft Corp. will mainly compete with Canadian aircraft manufacturer, Bombardier Aerospace and Brazillian Company, Embraer.

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AFP