Bombardier sells off CRJ aircraft program to Mitsubishi

Photo courtesy of Bombardier.

Canadian aerospace giant Bombardier has announce plans to sell its regional jet program to Mitsubishi Heavy Industries (MHI) in a US$550 million deal.

Mitsubishi, a Japanese manufacturer, will acquire maintenance, support, refurbishment, marketing, and sales activities for the CRJ Series aircraft, also including service and support network activities located in Montreal and Toronto, as well as in Bridgeport, West Virginia, and Tucson, Arizona. Mitsubishi will also take over liabilities amounting to approximately $200 million.

The CRJ program will complemen MHI’s existing commercial aircraft business, in particular the Mitsubishi SpaceJet commercial aircraft family.

“We are very pleased to announce this agreement, which represents the completion of Bombardier’s aerospace transformation,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc.

The CRJ production facility in Mirabel, QC will remain with Bombardier. Bombardier 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.

“The CRJ program has been supported by tremendously talented individuals," said Seiji Izumisawa, President & CEO of Mitsubishi Heavy Industries Ltd. "In combination with our existing infrastructure and resources in Japan, Canada and elsewhere, we are confident that this represents one effective strategy that will contribute to the future success of the Mitsubishi SpaceJet family."

The transaction is currently expected to close during the first half of 2020.