Industry Addendum: Manufacturers
Mitsubishi retreats from SpaceJet program even after buying Bombardier’s regional jet business in 2019
November 1st 2020
After more than a decade of development and an investment of US$10 billion, Japan’s national SpaceJet, or M90, has been suspended, its backer, Mitsubishi Heavy Industries (MHI) has announced. Read More »
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In June last year, MHI bought Canada’s Bombardier’s regional jet division, which had developed the CSeries regional aircraft. The Japanese conglomerate paid US$550 million for the OEM and also accepted liabilities of another $200 million.
“We will temporarily pause while making preparations for the resumption of the business, MHI chief executive, Seiji Izumisawa, said on October 29. He insisted SpaceJet remained a long-term goal for the aerospace to energy and defence group. “How we will take the business forward will depend on market conditions,” he said in a Financial Times report.
Meant to return Japanese aviation manufacturing to the global stage when it was launched in 2008, the SpaceJet has suffered several delays in achieving entry-into-service. It latest date for delivery was next year.
MHI has set a goal of 12% Return-on-Equity for the 88-92 seat aircraft by March 31, 2024.
