Bombardier completes sale of the CRJ Series aircraft programme to Mitsubishi Heavy Industries

Canada-headquartered Bombardier has completed the divesture of the CRJ Series aircraft programme to Mitsubishi Heavy Industries (MHI).

Earlier last month, the two sides agreed on the closing date of the acquisition of the Canadair Regional Jet (CRJ) programme.

The deal has a cash consideration of around $550m, which depends on the post-closing adjustments and the assumption of liabilities by MHI.

Under the agreement, the net beneficial interest in the Regional Aircraft Securitization Program (RASPRO) has been transferred to MHI. It carries a value of nearly $170m.

As part of the deal, MHI has taken over the CRJ Series aircraft-related activities such as maintenance, refurbishment, marketing, and sales.

It also includes other related services and support network in Montréal, Québec, and Toronto, Ontario, and its service centres in Bridgeport, West Virginia, and Tucson, Arizona, as well as the type certificates.

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Bombardier will continue to deliver components and spare parts. It will also finish assembling the 15 CRJ aircraft left in the backlog as of 31 March 2020 for MHI.

Following the acquisition, MHI RJ Aviation Group (MHIRJ) has been launched as a newly created group of entities.

Headquartered in Montréal, Canada, the new entity will provide full service and support solution for the global regional aircraft industry, as well as the CRJ Series aircraft.

MHI RJ Aviation Group president and CEO Hiroaki Yamamoto said: “I am pleased to announce the opening chapter of MHIRJ’s story.

“Building on the solid foundations already in place and with the strong support of the MHI group of companies, there is a new energy on board and our team is committed to serving the regional aviation market and becoming a platform for growth in the industry.”