Tag: Bombardier CRJ

Bombardier halts CRJ sales amid pending divestiture

News provided by FlightGlobal.com – link to full story

26 June 2019 by Jon Hemmerdinger

New Bombardier CRJ regional jets are no longer for sale.

The Montreal airframer confirms it has halted sales of additional new CRJs due to its pending divestiture of the CRJ programme to Mitsubishi Heavy Industries (MHI).

Bombardier announced the MHI deal on 25 June, saying it “expected to conclude” CRJ production in the second half of 2020 following delivery of all remaining aircraft in the backlog.

It now confirms it has halted sales activities, news that seemingly assures the imminent end of the CRJ line.

“There will be no more CRJ sales,” Bombardier tells FlightGlobal. “CRJ production will wind down until all aircraft in the current backlog have been delivered.”

Bombardier’s CRJ backlog stands at 36 CRJ900s, the majority of which are destined for the fleets of Air Canada‘s regional partner Jazz and US regional carriers PSA Airlines and SkyWest Airlines. Uganda Airlines also has outstanding orders for two CRJ900s, according to Cirium’s Fleets Analyzer.

Bombardier expects to close the sale of the CRJ programme to MHI, parent of Mitsubishi Aircraft, in the first half of 2020. The deal calls for Mitsubishi to pay $550 million in cash for the programme and to assume some $200 million in debt.

After the deal closes, Bombardier will continue producing CRJs for MHI until the backlog is cleared.

When asked about the status of the CRJ programme’s existing sales and marketing staff, Bombardier deferred to its 25 June media release.

“Pursuant to the agreement, MHI will acquire the maintenance, support, refurbishment, marketing and sales activities for the CRJ Series aircraft,” Bombardier’s release said.

MHI will also acquire CRJ type certificates and CRJ service and support centers in Montreal, Toronto, Bridgeport in West Virginia and Tucson in Arizona.

Bombardier delivered the first CRJ in 1992. When the backlog is clear in 2020, the company will have handed over more than 2,100 of the regional jets, Fleets Analyzer shows.

News of the Bombardier-MHI CRJ deal comes one week after Mitsubishi Aircraft rebranded its in-development MRJ as SpaceJet. It also announced development of a new 76-seat variant called the SpaceJet M100, which will complement the existing 88-seat SpaceJet M90, which Mitsubishi Aircraft expects to deliver from 2020.

Mitsubishi Heavy Industries to Acquire Canadair Regional Jet Program from Bombardier Inc.

Provided by Bombardier Inc

June 25, 2019 Montréal Bombardier Inc.,  Press Release

  • MHI now positioned to transform and lead the underserved regional jet business, with bolstered customer support services
  • Key step in MHI’s strategy of expanding its aircraft business globally, with a mid-term focus on North America
  • Completes Bombardier’s aerospace transformation and refocus on business aviation

Mitsubishi Heavy Industries, Ltd (MHI) (TOKYO:7011) and Bombardier Inc (TSX: BBD.B) announced today they have entered into a definitive agreement, whereby MHI will acquire Bombardier’s regional jet program for a cash consideration of $550 million USD, payable to Bombardier upon closing, and the assumption by MHI of liabilities amounting to approximately $200 million USD. Under the agreement, Bombardier’s net beneficial interest in the Regional Aircraft Securitization Program (RASPRO), which is valued at approximately $180 million USD, will be transferred to MHI.

Pursuant to the agreement, MHI will acquire the maintenance, support, refurbishment, marketing, and sales activities for the CRJ Series aircraft, including the related services and support network located in Montréal, Québec, and Toronto, Ontario, and its service centres located in Bridgeport, West Virginia, and Tucson, Arizona, as well as the type certificates.

This acquisition is complementary to MHI’s existing commercial aircraft business, in particular the development, production, sales and support of the Mitsubishi SpaceJet commercial aircraft family. The maintenance and engineering capabilities of the CRJ program will further enhance critical customer support functions, a strategic business area for MHI in the pursuit of future growth.

Seiji Izumisawa, President & CEO of Mitsubishi Heavy Industries Ltd., commented: “As we outlined during the recent Paris Air Show, we are working hard to ensure that we provide new profit potential for airlines and set a new standard for passenger experience. This transaction represents one of the most important steps in our strategic journey to build a strong, global aviation capability. It augments these efforts by securing a world-class and complementary set of aviation-related functions including maintenance, repair and overhaul (MRO), engineering and customer support.”     

Izumisawa concluded, “The CRJ program has been supported by tremendously talented individuals. In combination with our existing infrastructure and resources in Japan, Canada and elsewhere, we are confident that this represents one effective strategy that will contribute to the future success of the Mitsubishi SpaceJet family. MHI has a decades-long history in Canada, and I hope this transaction will result in the expansion of our presence in the country, and will represent a significant step in our growth strategy.”

“We are very pleased to announce this agreement, which represents the completion of Bombardier’s aerospace transformation,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. “We are confident that MHI’s acquisition of the program is the best solution for airline customers, employees and shareholders. We are committed to ensuring a smooth and orderly transition.”

Bellemare continued: “With our aerospace transformation now behind us, we have a clear path forward and a powerful vision for the future. Our focus is on two strong growth pillars: Bombardier Transportation, our global rail business, and Bombardier Aviation, a world-class business jet franchise with market-defining products and an unmatched customer experience.”

The CRJ production facility in Mirabel, Québec will remain with Bombardier. Bombardier will continue to supply components and spare parts and will assemble the current CRJ backlog on behalf of MHI. CRJ production is expected to conclude in the second half of 2020, following the delivery of the current backlog of aircraft.

Bombardier will also retain certain liabilities representing a portion of the credit and residual value guarantees totaling approximately $400 million USD. This amount is fixed and not subject to future changes in aircraft value, and payable by Bombardier over the next four years.

The transaction is currently expected to close during the first half of 2020 and remains subject to regulatory approvals and customary closing conditions.

The agreement contemplates a reverse break fee payable by MHI under certain circumstances.

Mitsubishi finalising deal for acquisition of CRJ programme

News provided by FlightGlobal.com

05 June 2019 by Max Kingsley-Jones Seoul, FightGlobal.com

Mitsubishi is expected to announce the acquisition of the CRJ programme from Bombardier at this month’s Paris air show in a move which will bolster its global footprint.

The Japanese company confirms it is in negotiations for the 50-100 seat regional jet programme, but says that no decision has been made and declines to comment on the content of discussions.

FlightGlobal understands that Mitsubishi is finalising negotiations with a likely announcement to be made at the Paris air show. The move will signal the end of Bombardier’s participation in commercial aircraft manufacturing. It will leave the Canadian manufacturer free to focus on its business-aircraft activities.

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Max Kingsley-Jones / FlightGlobal

Mitsubishi produces the MRJ regional jet, a rival to the CRJ. Bombardier and Mitsubishi are currently in a dispute with the Canadian company alleging theft of trade secrets related to CSeries certification and Global 7000 systems.

The Japenese company currently has a long-standing contract with Boeing for the US manufacturer to provide customer support for the MRJ regional jet. A 10-year partnership for round-the-clock customer support was agreed back in 2011. However, with Boeing having now forged a tie-up with Mitsubishi rival Embraer in the commercial aircraft sector, observers say that the Bombardier CRJ deal could help the Japanese company establish an independent footprint for support.

Bombardier Statement on CRJ Program

Provided by Bombardier Inc

June 5, 2019 Montréal Bombardier Inc.

Bombardier has recently stated it would explore strategic options for the CRJ Program.  From time to time, this may lead to discussions with potential counterparties.  While Bombardier does not generally comment publicly on market speculation or rumors, in light of recent media reports, Bombardier believes it is prudent to advise stakeholders that it is in discussions with Mitsubishi Heavy Industries, Ltd. with respect to its CRJ Program.  We will not further comment on the nature of the discussions. Before any agreement can be reached further review and analysis by Bombardier management and approval by Bombardier’s Board of Directors are required, and Mitsubishi Heavy Industries, Ltd. must complete its due diligence review and own analysis and approval process, which are outside of Bombardier’s control. There can be no assurance that any such discussions will ultimately lead to an agreement.

Bombardier Commercial Aircraft Enhances Customer Support in Africa and the Middle East with Relocation of its Q Series Aircraft Regional Support Team

Provided by Bombardier Inc.

  • Customer support team for the Q Series Aircraft Program will be located alongside longstanding customer South African Express Airways and close to O.R. Tambo International Airport
  • Customer support team for the CRJ Series Aircraft Program will continue to support its customers in its current location

April 23, 2019 Toronto Commercial Aircraft,  Press Release

Bombardier Commercial Aircraft announced today that it will relocate its Q Series aircraft regional support team from Lanseria International Airport to Airways Park, close to O.R. Tambo International Airport. This move will co-locate the regional support team for the Q Series aircraft with Bombardier’s longstanding customer, South African Express Airways. The CRJ Series Aircraft Program will maintain support to the region from its current location in Johannesburg, South Africa.

The regional support teams serve fleets of approximately 170 Dash 8/Q Series turboprops and about 70 CRJ Series regional jets in Africa and the Middle East. The relocation of the team supporting the fleet of Q Series aircraft will facilitate faster response times by team members when they need to travel to support customers and operators throughout the region.

Bombardier Commercial Aircraft has recorded firm orders for more than 1,300 Dash 8/Q Series and 1,900 CRJ Series aircraft, and the worldwide fleet is supported by teams in Africa and the Middle East, along with teams based in Canada (headquarters), Australia, Germany, India and Japan.

“We have enjoyed a 25-year relationship with Bombardier from the inception of South African Express until the present day. We are therefore delighted that Bombardier is positioning its Q Series aircraft regional support team to work more closely with our team at Airways Park, as well as with their other customers operating from O.R. Tambo International Airport,” said Siza Mzimela, Chief Executive Officer, South African Express Airways. “We’re confident that the proximity to our team and our hub will augment our operation and that we will benefit from Bombardier’s expertise as we work to further optimize the efficiency of our fleet and enhance our passengers’ experience.”

“The relocation of our Africa and Middle East Q Series regional support team is another step in our ongoing efforts to enhance our accessibility and support to customers and operators in the region,” said Todd Young, Vice President and General Manager, Head of Q Series Aircraft Program, Bombardier Commercial Aircraft. “O.R. Tambo International Airport serves as the primary airport for travel to and from South Africa, so it fits with our strategy to position our regional support teams where they are best able to offer timely support before, during and beyond an aircraft’s entry into service.”

“Our regional support teams provide quick-response problem solving, engineering expertise and tailored plans to meet our customers’ business plans,” said Charles Comtois, Head of CRJ Series Aircraft Program, Bombardier Commercial Aircraft. “Regional support team members also act as conduits to connect our customers to our extensive global network of Service Centres, Authorized Service Facilities, Parts Depots and Training Facilities.”