TOKYO, June 27 (Reuters) - A Mitsubishi Heavy Industries ( MHVYF )

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)