Mitsubishi to Acquire Bombardier’s Canadair Regional Jet Unit for $550 Million

By Paul Riegler on 26 June 2019
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DSC_0991 (1)Mitsubishi Heavy Industries announced plans to acquire Bombardier’s Canadair regional jet business for $550 million.

The deal completes the Canadian company’s exit from the commercial passenger jet business, allowing it to focus on its global rail business and its business-aviation unit.

The deal “represents the completion of Bombardier’s aerospace transformation,” said Alain Bellemare, Bombardier’s CEO, who added that it is also “the best solution for airline customers, employees, and shareholders.”

Over the past two years, Bombardier has slowly scaled back its aviation presence, first with the joint venture with Airbus that puts the European aircraft manufacturer in charge of what was originally introduced as the Bombardier CSeries, now the Airbus A220. Several weeks ago, Bombardier sold its Q Series turboprop aircraft unit to Longview Aviation Capital.

“This transaction represents one of the most important steps in our strategic journey to build a strong, global aviation capability,” said Seiji Izumisawa, Mitsubishi Heavy Industries’ CEO, in a statement.

Under the terms of the deal, Bombardier will build the current backlog of 30 CRJ regional jets for MHI, and the CRJ production facility in Mirabel, Québec will remain with Bombardier. Bombardier will also supply parts and components on behalf of MHI.

(Photo: Accura Media Group)

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