Canadian aircraft maker Bombardier is selling its CRJ Series regional jet program to Japan's Mitsubishi (AFP Photo/Eva HAMBACH) |
Canadian manufacturer Bombardier announced Tuesday the sale of its CRJ Series regional jet program to Japan's Mitsubishi Heavy Industries (MHI) for US$550 million, effectively exiting the commercial passenger aircraft sector.
The deal
with Mitsubishi, which has been seeking to break into aviation, comes after
Bombardier recently sold a majority stake in its new medium-range C Series
jetliners to Airbus, which has been renamed A220, and its Q Series turboprop
line to a Canadian investment fund.
The sale of
the 75- to 100-seat CRJ line -- along with its service and support networks in
Montreal, Quebec City and Toronto; Bridgeport, West Virginia; and Tucson,
Arizona -- is expected to close by the end of 2020.
In a
statement, Bombardier said Mitsubishi will also assume liabilities totalling
$200 million, and take over all maintenance, support, refurbishment, marketing
and sales activities for the aircrafts.
Mitsubishi
president Seiji Izumisawa said the CRJ will compliment the development and
production of its SpaceJet family of commercial jets as it pursues future
growth in this sector.
"This
transaction represents one of the most important steps in our strategic journey
to build a strong, global aviation capability," he said.
Bombardier
chief executive Alain Bellemare, meanwhile, said the transaction represents
"the completion of Bombardier's aerospace transformation."
The
Canadian company, he said, would now focus on its global rail business and its
last remaining aircraft -- business jets.
Its CRJ
production facility in Mirabel, Quebec will remain with Bombardier, and the
Canadian company will continue to supply components and spare parts for the CRJ
as well as assemble the current CRJ backlog on behalf of Mitsubishi until the
sale is concluded in the second half of 2020, subject to regulatory approvals.
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