Bombardier signs deal with Mitsubishi on sale of regional jet program

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MONTREAL _ Bombardier Inc. announced Tuesday a deal to sell its regional jet program to Mitsubishi Heavy Industries Ltd. for US$550 million.

Bombardier chief executive Alain Bellemare said the agreement represents the completion of the transformation of the company’s aerospace business.

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“With our aerospace transformation now behind us, now we have a transparent path ahead and a strong imaginative and prescient for the longer term,” Bellemare stated in an announcement.

“Our focus is on two sturdy progress pillars: Bombardier Transportation, our world rail enterprise, and Bombardier Aviation, a world-class enterprise jet franchise with market-defining merchandise and an unmatched buyer expertise.”

Mitsubishi, which may even assume liabilities totalling about US$200 million, will purchase the upkeep, help, refurbishment, advertising and gross sales actions for the CRJ Sequence plane.

The settlement contains the associated providers and help community situated in Montreal and Toronto and its service centres in Bridgeport, W.Va., and Tucson, Ariz.


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Mitsubishi chief govt Seiji Izumisawa stated the deal is a crucial step in direction of constructing a powerful, world aviation functionality.

“Together with our present infrastructure and assets in Japan, Canada and elsewhere, we’re assured that this represents one efficient technique that may contribute to the longer term success of the Mitsubishi SpaceJet household,” Izumisawa stated.


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The CRJ manufacturing facility in Mirabel, Que., will stay with Bombardier, which may even proceed to produce elements and spare components.

Bombardier will assemble the present CRJ backlog on behalf of Mitsubishi with manufacturing anticipated to be accomplished within the second half of 2020.

Bombardier may even retain roughly US$400 million in liabilities representing a portion of the credit score and residual worth ensures.

The deal is anticipated to shut within the first half of subsequent yr, topic to regulatory approvals and customary closing circumstances.

 

 

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