Mitsubishi Heavy Industries (MHI) has added to its aircraft portfolio after striking a definitive agreement with Bombardier Aerospace to acquire the CRJ regional jet programme from the Canadian company.
Under the agreement, MHI will acquire the CRJ for a cash consideration of US$550 million, payable to Bombardier upon closing, and the assumption by MHI of liabilities amounting to approximately $200 million relating to the programme. MHI will acquire the maintenance, support, refurbishment, marketing and sales activities for the CRJ series, including the related services and support network located in Montreal, Quebec, and Toronto, Ontario, and its service centres located in Bridgeport, West Virginia, and Tucson, Arizona, as well as the type certificates.
The CRJ will clearly complement MHI’s existing commercial aircraft business and the development, production, sales and support of the Mitsubishi SpaceJet commercial aircraft family, the aircraft formerly known as the MRJ.
Mitsubishi Heavy Industries President and CEO Seiji Izumisawa said: “As we outlined during the recent Paris Air Show, we are working hard to ensure that we provide new profit potential for airlines and set a new standard for passenger experience. This transaction…augments these efforts by securing a worldclass and complementary set of aviation-related functions, including maintenance, repair and overhaul, engineering and customer support.”
Bombardier President and CEO Alain Bellemare commented the sale of the CRJ, “represents the completion of Bombardier’s aerospace transformation”. The company had previously sold its turboprop and utility aircraft families and the controlling stake in the C Series (now A220).
The CRJ production facility in Mirabel, Québec will remain with Bombardier, which will continue to supply components and spare parts and will assemble the current CRJ backlog on behalf of MHI. CRJ production is expected to conclude in the second half of 2020, following the delivery of the current backlog of aircraft. Mark Broadbent