>Mitsubishi buys Bombardier CRJ Series for $550M
Mitsubishi Heavy Industries bought Bombardier CRJ Series, closing the $550 million worth deal one year after it was first announced in June 2019. CRJ Series was the only regional aircraft program remaining in Bombardier’s portfolio.
Together with the regional aircraft program, Mitsubishi also bought maintenance, engineering, airworthiness certification support, refurbishment, asset management, marketing, and sales activities for the CRJ Series aircraft.
Bombardier continues to supply components and spare parts and build CRJ aircraft from the current order book on behalf of Mitsubishi. As of March 31, 2020, the backlog consisted of 15 CRJ aircraft. The Canadian company expected to complete deliveries of them in the second half of 2020.
Bombardier said it was selling the CRJ Series for $550 million. Mitsubishi is also taking over liabilities amounting to approximately $200 million. The Japanese company first revealed its intentions to buy the Canadian regional jet series back in June 2019.
Alongside the news of the completed CRJ purchase, the Japanese company announced the launch of MHI RJ Aviation Group. The newly created group of entities will be headquartered in Montreal, Canada. The company will focus on regional aircraft, providing “a holistic” service and support.
“I am pleased to announce the opening chapter of MHIRJ’s story,” Hiroaki Yamamoto, President & CEO of the MHI RJ Aviation Group, said in a statement on June 1, 2020. “Building on the solid foundations already in place and with the strong support of the MHI group of companies, there is new energy on board and our team is committed to serving the regional aviation market and becoming a platform for growth in the industry.”
Bombardier has almost completely withdrawn from the commercial aviation industry. The company sold the majority of its shares in the CSeries program to Airbus in June 2018. The European manufacturer has since renamed the aircraft A220. In November 2018, Viking Air, which had previously acquired Bombardier’s Amphibious Aircraft program in 2016, took over the Q400 for $300 million.