Tag: Bombardier

L.J. Aviation Grows Fleet with Addition of Two Industry-leading Bombardier Challenger 350 Business Jets

Provided by Bombardier Business Aircraft/Globe Newswire

  • Two new Challenger 350 business jets recently added to L.J. Aviation’s existing fleet of more than 40 aircraft under management
  • The Challenger 300 aircraft series continues to outperform the competition as the fastest business jet in history to reach 300 deliveries in the medium and large categories and as the best-equipped aircraft in its class
  • With the widest and quietest cabin, smoothest ride and lowest operating costs in its category, the Challenger 350 aircraft delivers an unrivalled experience

MONTREAL, Aug. 22, 2019 (GLOBE NEWSWIRE) — Bombardier is pleased to announce that L.J. Aviation, a world-class aircraft flight management and charter aircraft company, has expanded its fleet with its latest addition of two industry-leading Challenger 350 aircraft. The high-performing Challenger 350 business jets join the company’s existing fleet of 40 aircraft and are available for charter in the Mid-Atlantic States.

© Bombardier

“We are thrilled to receive our Challenger 350 aircraft,” said Ed Kilkeary Jr., President, L.J. Aviation. “It delivers everything we want in a business jet: outstanding performance, a comfortable and productive environment, and advantageous operating costs. The Challenger 350 aircraft is a sound investment that will make the most of our passengers’ time.”

Extending its offering with two new industry-leading Challenger 350 business jets, L.J. Aviation currently manages and operates five Challenger 300 series business jets, one Challenger 604 aircraft and a Global 5000 aircraft.  

In the last decade, the Challenger 300 aircraft series has accounted for more deliveries than any other business jet platform in the industry. The Challenger 350 aircraft builds upon this remarkable legacy of leadership and continues to take centre stage in the super mid-size segment.

“We are proud of our long-standing relationship with L.J. Aviation, and we are extremely pleased that they have added two Challenger 350 aircraft to their fleet,” said Peter Likoray, Senior Vice President, Worldwide Sales and Marketing, Bombardier Business Aircraft. “This business jet is world-renowned as the leader in the super mid-size segment, and with good reason. A stunning cabin, smooth ride and exceptional value proposition all make the Challenger 350 aircraft an ideal choice for customers.”

With a true full seats, full fuel, 3,200 nautical mile range, the Challenger 350 aircraft is an efficient and reliable business tool with proven performance. Delivering comfort without compromise, the Challenger 350 jet was recently recognized by Robb Report Magazine as the Best of the Best super mid-size aircraft for the second consecutive year.

Airbus opens second A220 line as assemblies start at Mobile

News provided by FlightGlobal.com – link to full story

05 August, 2019 by Jon Hemmerdinger, Boston, FlightGlobal.com

Airbus has started assembling A220s at its Alabama facility, a milestone coming nearly two years after the European airframer announced its intention to open a US A220 manufacturing site.

The company has “officially begun manufacturing the A220 in the US”, with work commencing on an A220-300 that Airbus intends to deliver to Delta Air Lines in the third quarter of next year.

Airbus describes the start of US A220 production as evidence of its position as a top US manufacturer and of its increasingly global manufacturing footprint.

“With Mobile, and our production network in Asia, Canada and Europe, we have strategically created a worldwide industrial base to better serve our customers,” says Airbus Americas chief executive Jeffrey Knittel.

A220 workers in Mobile recently completed training in Mirabel, Canada – home of the original A220 production line, Airbus says.

Earlier this year Airbus began constructing the A220 assembly hangar and other related facilities in Mobile, though the company is using some existing A320 buildings to assemble “the first few” A220s, it says.

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Airbus’s production facility in Mobile, where the company makes A320s and A220s
Airbus

The first large A220 components, including the cockpit and a fuselage section, arrived at the Mobile site in June.

The start of US A220 production comes despite initial scepticism that Airbus would make good on its US A220 plans.

Airbus announced its intention to open the Mobile A220 site as part of its October 2017 proposed acquisition of the programme, then called CSeries, from Bombardier.

The acquisition came amid threats the USA would impose significant tariffs on CSeries imports – retaliation for Bombardier receiving billions of dollars in government financial support.

Those tariffs threatened Bombardier’s already-announced sale of at least 75 A220s to Delta.

Airbus’s plan to assemble A220s at the Mobile Aeroplex at Brookley, where it already assembles A320 family aircraft, appeared a means to bypass tariffs.

But Bombardier won the trade dispute, eliminating the threat of tariffs. And Airbus, after closing the acquisition last year, still moved forward with its Mobile plan.

Bombardier Reports Second Quarter 2019 Results, Revises 2019 Guidance

Provided by Bombardier Inc/Globe Newswire

  • Consolidated revenues of $4.3B, representing 9% organic growth, driven mainly by higher aircraft deliveries and aftermarket growth
  • Adjusted EBITDA and adjusted EBIT of $312M and $206M respectively; reported EBIT of $371M, largely driven by gain on the sale of the Q Series program
  • Free cash flow usage of $429M during the quarter and $1.5B year-to-date, in line with target for the first half of 2019, supporting Global 7500 ramp-up and progress on Transportation legacy projects
  • Full year guidance(3) updated to reflect new Aviation reporting segment, largely in line with previous guidance for aerospace segments
  • Announcing $250-$300M of additional investments and costs in 2019 to address late-stage, legacy projects and ensure transformation at Transportation remains on track
  • Consolidated adjusted EBIT for 2019 now expected to be $700-$800M, reflecting reduction of full-year Transportation adjusted EBIT margin to ~ 5.0%
  • Consolidated free cash flow usage for 2019 now expected to be approximately $500M, reflecting the additional investments, costs and timing of project delivery milestones at Transportation

All amounts in this press release are in U.S. dollars unless otherwise indicated. Amounts in tables are in millions except per share amounts, unless otherwise indicated.

MONTRÉAL, Aug. 01, 2019 (GLOBE NEWSWIRE) — Bombardier (TSX: BBD.B) today reported its second quarter 2019 results and provided updated guidance to reflect both the consolidation of the Company’s aerospace assets into a single reporting segment, Bombardier Aviation, and the additional investments and costs needed to complete late-stage, legacy projects and the transformation at Transportation by the end of 2020.

Organic revenue growth in the second quarter was strong at 9% year-over-year, driven mainly by increased aircraft deliveries, solid aftermarket performance fueled by past investments to expand Business Aircraft’s service network and capabilities, as well as progress across the rail portfolio. In the second quarter, Bombardier also completed the sale of the Q Series aircraft program and announced the sale of the CRJ program to Mitsubishi Heavy Industries. The quarter also marked the one-year anniversary of Bombardier’s partnership with Airbus, which has added close to 300 new orders and commitments to the backlog during this time period.

“We are very happy with our continued momentum in aerospace, where our transformation is progressing ahead of plan,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. “We have successfully addressed our underperforming commercial aircraft programs and are now fully focused on business aviation, where the ramp-up of Bombardier’s largest growth program, the Global 7500, is proceeding as planned, as are our aftermarket growth strategy and our product portfolio enhancements.”

In 2019, Bombardier will make additional investments and incur additional costs at Transportation, totaling $250 million to $300 million, to both complete the late-stage, legacy projects and protect the delivery schedule for other projects. The investments include adding manufacturing and engineering capacity.

“At Transportation, we have made significant progress and remain on track to complete the transformation by 2020,” Bellemare continued. “As we simultaneously address our legacy projects, complete Transportation’s reshaping to leverage its global scale, and ramp-up to deliver on our strong backlog, we are making the necessary investments to ensure we have the right resources and capacity to deliver stronger, sustainable financial performance in the years ahead.”

Second Quarter 2019 Results

Bombardier’s revenues for the quarter were $4.3 billion. Adjusted EBITDA and adjusted EBIT for the quarter were $312 million and $206 million respectively, mainly driven by a 7.0% adjusted EBIT margin at Business Aircraft while Transportation recorded a 5.1% adjusted EBIT margin. Transportation’s lower margin reflects additional cost pressure mainly on its large, complex legacy projects. On a reported basis, EBIT of $371 million is largely driven by the gain of $219 million on the sale of the Q Series program.

Free cash flow usage was $429 million for the quarter and $1.5 billion year to date, in line with the Company’s expectations for the first half of 2019. Free cash flow performance was solid across aerospace segments, offsetting a softer performance at Transportation. Bombardier also maintained a healthy liquidity position, closing the quarter with $3 billion of cash on hand.

Guidance Update

Link to detail charts

Starting in the third quarter of 2019, Bombardier’s three existing aerospace units will be consolidated into a single Bombardier Aviation business segment. As a result of this change, and to reflect the additional investments, costs and the timing of project delivery milestones at Transportation, the Company is updating its 2019 guidance as follows.

  • Revenues increased by 6% year-over-year to $1.4 billion on 35 deliveries, including 2 Global 7500 aircraft.
  • Aftermarket revenues grew 3.6% year-over-year or 11% on a year-to-date basis and reflect the disposal of the aircraft training services earlier in the year. Supporting the aftermarket growth strategy, a new Dubai line maintenance station was announced during the quarter to enhance service capabilities in the Middle East.
  • Backlog increased by $0.4 billion in the quarter and $1.0 billion year-to-date, reaching an industry-leading $15.3 billion and reflecting broad market interest across all regions.
  • Adjusted EBITDA for the quarter was stable year-over-year at $146 million, even as production ramps up on the Global 7500. The adjusted EBIT margin of 7.0% during the quarter is lower against the same quarter last year, mainly as a result of higher amortization associated with Global 7500 deliveries. EBIT margin for the quarter was 6.1%.
  • As the Global 7500 ramp-up progresses on plan and with all 2019 deliveries now in completion stages, the aircraft continues to demonstrate unmatched short runway performance by completing the first ever non-stop flight from London City Airport to Los Angeles.
  • Subsequent to the quarter, Bombardier unveiled the Learjet 75 Liberty. With improved economics, $9.9 million list price and operating cost comparable with its competitors’, the new member of this iconic brand is a step up for Light jet operators, while delivering better performance.

Commercial Aircraft

  • On May 31, 2019, the Corporation completed the previously announced sale of the Q Series aircraft program assets, including aftermarket operations and assets, to De Havilland Aircraft of Canada Limited (formerly Longview Aircraft Company of Canada Limited), a wholly owned subsidiary of Longview Aviation Capital Corp., for gross proceeds of $298 million.
  • During the quarter, the Corporation entered into a definitive agreement with Mitsubishi Heavy Industries, Ltd (MHI) for the sale of its regional jet program for a cash consideration of $550 million payable upon closing, and the assumption by MHI of liabilities related to credit and residual value guarantees and lease subsidies amounting to approximately $200 million. The CRJ production facility in Mirabel, Québec will remain with Bombardier and will continue to supply components and spare parts and will assemble the current CRJ backlog on behalf of MHI, CRJproduction is expected to conclude in the second half of 2020. The transaction is currently expected to close during the first half of 2020 and remains subject to regulatory approvals and customary closing conditions.
  • Revenues reached $516 million during the quarter on increased deliveries, including 6 Q400 deliveries prior to completion of the Q Series aircraft program sale and 11 CRJ. Year-over-year revenues decrease is due to C Series deliveries included in the comparable for the first half of 2018.
  • Adjusted EBIT of $12 million includes $21 million contribution from commercial aircraft programs, offset by $9 million share of net loss in ACLP. EBIT for the quarter of $226 million is largely driven by the $219 million gain on the sale of the Q Series aircraft program to Longview.

Aerostructures and Engineering Services

  • Revenues at Aerostructures and Engineering Services grew 24% year-over-year to $565 million as a result of the ramp up of the Global 7500and A220 programs.
  • Adjusted EBIT margin for the quarter of 6.5% reflects the ongoing ramp-up of the Global 7500 and A220. EBIT margin for the quarter was 4.4%.
  • The Corporation continues to pursue the divestiture of its Belfast and Morocco aerostructures businesses as it focuses its aerostructures activities around the core capabilities in Montréal, Mexico and the newly acquired Global 7500 wing operations in Texas.

Transportation

  • Revenues during the quarter totalled $2.2 billion, delivering 2% growth year-over-year, excluding the unfavourable currency impacts. Revenues year-to-date are in line with the revised production schedule announced earlier in the year and consistent with full year guidance of $8.75 billion.(3)
  • Adjusted EBIT margin for the second quarter of 5.1% was below expectations, reflecting additional cost pressure on large, late-stage projects, mainly in the U.K., Germany and Switzerland. EBIT margin for the quarter was 4.0%.
  • Full-year adjusted EBIT margin guidance is now approximately 5%, mainly as the Corporation makes additional investments and incurs additional costs, totalling $250 million to $300 million, to both complete the legacy projects and to protect the delivery schedule for other projects. These investments include adding engineering and production capacity.(3)
  • Transportation’s backlog of $33.6 billion reflects book-to-bill of 0.9 during the quarter. The positive market outlook for the rail industry remains unchanged. 

Bombardier’s Award-winning Challenger 350 Aircraft Reaches 300 Deliveries Faster than Any Other Medium or Large Jet in History

Provided by Bombardier Business Aircraft/Globe Newswire

  • With its stunning and sophisticated interior cabin, smooth ride and the lowest operating costs in its category, the Challenger 350aircraft delivers an unrivalled private jet experience
  • Outpacing all other business jet competitors in 2018, Bombardier delivered 60 Challenger 350 aircraft last year, capturing 58 per cent of the super mid-size segment
  • The segment-defining Challenger 350 aircraft is also saluted as the 2019 Best of the Best super mid-size aircraft by Robb Report

MONTREAL, July 11, 2019 (GLOBE NEWSWIRE) — Bombardier is proud to announce that its industry-leading Challenger 350 aircraft is the fastest business jet in history to reach 300 deliveries in the medium and large categories, achieving yet another significant milestone that further reinforces its leadership status. This landmark comes as the Challenger 350 jet was recently recognized by Robb Report Magazine as the Best of the Best super mid-size aircraft for the second consecutive year. Since 1988, Robb Report’s Best of the Best awards spotlight products, services and destinations at the very pinnacle of their industries, defining the benchmark of quality. Not only have Bombardier business jets been recognized as trendsetters in the industry for over a decade, its Challenger 300 series received the honour seven times, making it one of the most distinguished business jet in its class.

“The delivery of the 300th Challenger 350 business jet in only five years after its entry-into-service represents another exciting milestone for Bombardier, and underscores the trust our customers place in this industry-leading aircraft,” said Peter Likoray, Senior Vice President, Worldwide Sales and Marketing, Bombardier Business Aircraft. “We are equally delighted that the Challenger 350 aircraft has been honored as Best of the Best by Robb Report. This prestigious recognition speaks to the worldwide acknowledgement that there is simply no aircraft like the Challenger 350 jet in its segment.”

The ultimate in design, performance and luxury, the Challenger 350 jet offers customers an unbeatable and outstanding value proposition with unmatched reliability and economics, unrivaled cabin comfort along with Bombardier’s signature smooth ride.

Making a great aircraft even better, Bombardier recently announced an update on a series of enhancements to the Challenger 350 aircraft, further underscoring its leadership position in the super mid-size segment. New enhancements to the aircraft include available compact Head-up Display (HUD) and Enhanced Vision System (EVS), state-of-the-art cabin sound-proofing technology, and refined cockpit aesthetics. A performance improvement package also allows the aircraft to fly up to 1,500 NM farther out of short runways, complementing its steep approach certifications awarded by international regulatory bodies including EASA, FAA and TC.

Challenger aircraft are assembled at Bombardier Aviation’s multifaceted facility in Montreal, Quebec. Thanks to a highly skilled local workforce, the site comprises of end-to-end assembly, completion, pre-flight and delivery activities for the Challenger 350 and Challenger 650 programs. In the last decade, the Challenger 300 series aircraft accounted for more deliveries than any other business jet platform in the industry. The Challenger 350aircraft builds upon this remarkable legacy of leadership and continues to set the standard in the super mid-size segment.

Bombardier’s best-selling Challenger 350 aircraft

As the only super mid-size aircraft that can fly full range at full fuel with full seat capacity, the Challenger 350 aircraft offers the luxury of having it all. With its signature smooth ride, exceptional cabin and the lowest operating costs in its class, the best-selling business aircraft of the last decade is in high demand on the charter market. The stylish and spacious cabin on the Challenger 350 business jet accommodates up to 10 passengers, features a fully-equipped galley, and unrestricted access to the baggage compartment at all flight levels, while recently enhanced sound-proofing technology further establishes the cabin as the quietest in its class.

The Challenger 350 jet boasts class-defining performance, a true seats full, tanks full range capability and can connect New York City to London.*

Bombardier Launches the Learjet 75 Liberty, Opening a New Frontier for the Iconic Learjet

Provided by Bombardier Aviation

July 2, 2019 Montréal Aviation,  Business Aircraft

  • Newest Learjet gives light jet passengers the freedom to stretch out with a six-seat configuration in the category’s longest cabin
  • The Learjet 75 Liberty is a step up for light jet operators, delivering better performance for the same operating costs as the competition
  • With a list price of $9.9 million U.S., the Learjet 75 Liberty puts the world’s best light jet within reach of more customers than ever
  • The Learjet 75 Liberty is expected to enter service in 2020
Introducing the Learjet 75 Liberty.

Bombardier is proud to unveil the Learjet 75 Liberty, offering more light jet operators than ever before the opportunity to step up into the iconic platform that launched business aviation in America.

Passengers who step into the six-seat Learjet 75 Liberty will have the freedom to stretch out in the only Executive Suite in the light jet category, aboard a stunning cabin that delivers the quietest and smoothest ride.

The Learjet 75 Liberty will be offered at a list price of $9.9 million U.S., with first deliveries expected in 2020. This exceptional value proposition represents a new frontier for the Learjet brand.

“The Learjet 75 Liberty represents a step up for customers in the light jet segment, with unprecedented spaciousness and Bombardier’s renowned smooth ride,” said David Coleal, President, Bombardier Aviation. “The newest member of the Learjetfamily delivers a flight experience that eclipses the competition.”

The Learjet 75 Liberty offers better performance at the same operating costs as competitor aircraft. The Learjet 75 Liberty is the fastest aircraft in the light jet segment and has a greater reach than the competition. Its range of 2,080 nautical miles can connect Las Vegas to New York, Seattle to Washington, D.C., and Mexico City to San Francisco, nonstop.*

Featuring a flat floor throughout the cabin, a standard pocket door between the cockpit and the Executive Suite providing the quietest flight experience and a Gogo ATG 4G solution for seamless connectivity, the Learjet 75 Liberty offers an environment tailored for productivity.**

The Learjet 75 Liberty aircraft is certified to the FAA’s more stringent Part 25 regulations, applicable to commercial airliners, unlike most competitors in the light jet category that are certified to Part 23 regulations.

Learjet aircraft are preferred by pilots for their impressive handling characteristics and outstanding performance. The Learjet 75 Liberty will feature the advanced Bombardier Vision flight deck, and include the recently announced Garmin G5000 avionics upgrade.

Proudly assembled by a world-class team in Wichita, Kansas, Learjet aircraft represent the pinnacle of American ingenuity.

“I’m extremely proud that the Learjet 75 Liberty will be built in Wichita, where the Learjet dream first took flight,” said Tonya Sudduth, Vice President of Operations and Wichita Site, Bombardier Aviation. “Our Wichita facility today has a diverse mandate supporting Bombardier’s extensive fleet of business aircraft, but to introduce the newest member of this iconic brand is of special significance to our team.”

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 Concludes Sale of the Q Series Aircraft Program to Longview

Provided by Bombardier Inc.

June 3, 2019 Montréal Bombardier Inc.,  Press Release

Bombardier (TSX: BBD.B) confirmed today the closing of the previously announced sale of the Q Series aircraft program assets to De Havilland Aircraft of Canada Limited (formerly Longview Aircraft Company of Canada Limited), an affiliate of Longview Aviation Capital Corp., for gross proceeds of approximately $300 million. Net proceeds are expected to be approximately $250 million after the assumption of certain liabilities, fees, and closing adjustments.

Longview will carry on the production of Q400 aircraft at the Downsview Facility in Toronto, and will continue performing aftermarket services for Q Series aircraft. Bombardier will provide transitional services and will license certain intellectual property to Longview to facilitate a seamless transition of the Q Series aircraft program.