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Bombardier sells CRJ Jet Program to Mitsubishi



Canadian airline company Bombardier has in a statement announced the sale of its regional jet program, CRJ, to Japan's Mitsubishi Heavy Industries Ltd. (MHI)

In total, the deal is valued at $ 750 million; MHI will pay $ 550 million in cash by closing the deal with Bombardier in the first half of 2020, along with estimated $ 200 million in debt.

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Bombardier sells CRJ jet program to Mitsubishi

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The MHI will acquire: the maintenance, support, refurbishment, marketing and sales activities of the CRJ series, this agreement will include the type of certificate of the flight family, along with its Montréal and Toronto support networks Included are also the service centers in Bridgeport, West Virginia, and Tucson, Arizona.

This acquisition is complementary to MHI's existing commercial airline business, in particular: the development, production, sale and support of the Mitsubishi SpaceJet commercial aircraft family. 19659002] Production of the CRJ aircraft family is expected to end in the second half of 2020 when the order backlog for the aircraft has been delivered. The plant in Mirabel, Canada will remain with Bombardier and continue to supply components and spare parts.

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Seiji Izumisawa, CEO of Mitsubishi Heavy Industries Ltd. commented "The CRJ program has been backed by hugely talented individuals. In combination with our existing infrastructure and resources in Japan, Ca nada and elsewhere, we are confident that this represents an effective strategy that will contribute to the future success of the Mitsubishi SpaceJet family. MHI has a decade-long history in Canada, and I hope this transaction will result in the expansion of our presence in the country and will make a significant step in our growth strategy "

" We are very pleased to announce this agreement that represents the completion of Bombardier's space transformation. We are confident that MHI's acquisition of the program is the best solution for the airline's customers, employees and shareholders. We are committed to ensuring a smooth and proper transition, says Alain Bellemare, President and CEO, Bombardier Inc.

Bombardier seeks to close the commercial airline market and focus on business jets and the large railway segment.

"With our flight transformation now behind us, we have a clear path ahead and a strong future vision. Our focus is on two strong growth poles: Bombardier Transportation, our global rail business and Bombardier Aviation, a world-class business jet franchise with market-defined products and a unique customer experience. "

This announcement confirms previous rumors that the two Companies were in discussions about the acquisition of Bombardier's CRJ program.


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