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Tuesday 3rd August 2021 08:27 AM

M'bishi Heavy Completes Buyout of Bombardier Small Jet Busines


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TOKYO (Kyodo) -- Mitsubishi Heavy Industries Ltd. said Tuesday it has completed the acquisition of the regional jet business of Canada's Bombardier Inc., in a bid to bolster its troubled project to develop Japan's first domestically produced passenger jet. 

The $550 million acquisition, completed Monday as scheduled, came as the coronavirus pandemic has seriously damaged air travel demand globally.

Mitsubishi Heavy has also set up a new company in Montreal to inherit the maintenance and customer services of Bombadier's small passenger jet business.

The Japanese firm hopes to utilize the knowhow of Bombardier's engineering team and sales network mainly in North America, one of the biggest markets for the regional jet business.

Mitsubishi Aircraft Corp., a subsidiary of Mitsubishi Heavy, has repeatedly delayed delivery of its Mitsubishi SpaceJet, formerly known as the Mitsubishi Regional Jet, since 2013 due to design modifications and parts supply issues. The delivery of the first unit is now expected for fiscal 2021 at the earliest.

The coronavirus pandemic is taking its toll on the airline industry worldwide, dampening demand for new aircraft as many airlines are facing huge losses.

Mitsubishi Aircraft is planning to slash its workforce in the struggling regional jet business and downsize the planned mass production of the 90-seat class passenger jet, sources close to the matter said late last month.

It is also considering closing two of its three development bases in North America -- an office in the state of Washington and a base in Montreal -- other sources have said.

Mitsubishi Heavy said last month it would reduce the development budget of the SpaceJet to about 60 billion yen ($556 million) in the current business year from around 140 billion yen in fiscal 2019.

THE MAINICHI



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Posted on : Tuesday 3rd August 2021 08:27 AM

M'bishi Heavy Completes Buyout of Bombardier Small Jet Busines


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Posted by  Tronserve admin
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TOKYO (Kyodo) -- Mitsubishi Heavy Industries Ltd. said Tuesday it has completed the acquisition of the regional jet business of Canada's Bombardier Inc., in a bid to bolster its troubled project to develop Japan's first domestically produced passenger jet. 

The $550 million acquisition, completed Monday as scheduled, came as the coronavirus pandemic has seriously damaged air travel demand globally.

Mitsubishi Heavy has also set up a new company in Montreal to inherit the maintenance and customer services of Bombadier's small passenger jet business.

The Japanese firm hopes to utilize the knowhow of Bombardier's engineering team and sales network mainly in North America, one of the biggest markets for the regional jet business.

Mitsubishi Aircraft Corp., a subsidiary of Mitsubishi Heavy, has repeatedly delayed delivery of its Mitsubishi SpaceJet, formerly known as the Mitsubishi Regional Jet, since 2013 due to design modifications and parts supply issues. The delivery of the first unit is now expected for fiscal 2021 at the earliest.

The coronavirus pandemic is taking its toll on the airline industry worldwide, dampening demand for new aircraft as many airlines are facing huge losses.

Mitsubishi Aircraft is planning to slash its workforce in the struggling regional jet business and downsize the planned mass production of the 90-seat class passenger jet, sources close to the matter said late last month.

It is also considering closing two of its three development bases in North America -- an office in the state of Washington and a base in Montreal -- other sources have said.

Mitsubishi Heavy said last month it would reduce the development budget of the SpaceJet to about 60 billion yen ($556 million) in the current business year from around 140 billion yen in fiscal 2019.

THE MAINICHI


Tags:
coronavirus japanese firm mitsubishi aircraft corp mitsubishi spacejet