Bombardier closes the sale of the CRJ Mitsubishi

Bombardier clôture la vente des CRJ à Mitsubishi

Photo: Paul Chiasson, The canadian Press
Under the agreement, Mitsubishi retrieves the maintenance activities, marketing and sale of the RTA, but not its manufacturing operations.

Bombardier concluded on Monday the sale of its program of regional jets, Mitsubishi Heavy Industries for US $ 550 million, marking its departure from the commercial aviation sector after having worked for three decades.

The sale of its CRJ aircraft will allow Bombardier to focus on its only source of income remaining, private planes, while the company continues to deliver in line its production after the closure of its facility due to the pandemic of COVID-19, which cost him a maximum of $ 800 million in the last quarter.

The agreement with Mitsubishi just add needed capital to a company whose debt exceeds $ 9 billion US $ and that the order book of business jets decreases rapidly, because customers and businesses are reassessing the relevance of the purchase of a private aircraft in a period of recession.

Once an important source of income for the company in montreal, the range of the CRJ now struggling to generate profits, 29 years after his first trip. Over the past five years, the aircraft narrow-body aircraft E175 Embraer SA has dominated the american market, where the majority of regional jets are sold.

Under the agreement, Mitsubishi retrieves the maintenance activities, marketing and sale of the RTA, but not its manufacturing operations.

The agreement includes the related services and the network of support located in Montreal and Toronto and service centres in Bridgeport, West Virginia, and Tucson, Arizona.

Bombardier says that it will continue to provide components and will assemble for Mitsubishi 15 CRJ aircraft remaining backlog as on 31 march, until their delivery, expected by the end of this year.

Bombardier says that the transaction is still subject to adjustments after the closing date and that the company retains liabilities representing a portion of the credit guarantees and residual value guarantees totaling $ 288 million US dollars.

To see the video

Share Button

Add a Comment

Your email address will not be published. Required fields are marked *