Under the agreement, Bombardier's net beneficial interest in the Regional Aircraft Securitisation 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 commercial aircraft business, in particular the development of the Mitsubishi SpaceJet commercial aircraft family unveiled at the recent Paris Airshow. 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 and CEO of MHI, commented: "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: "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.”
Alain Bellemare, President and Chief Executive Officer, Bombardier said: "We are very pleased to announce this agreement, which represents the completion of Bombardier's aerospace transformation. 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."
He 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 totalling 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.
A spokesperson for Bombardier’s plant in Belfast said: “Following today’s announcement regarding the definitive agreement for Mitsubishi Heavy Industries to acquire the Bombardier CRJ programme, we are reviewing what impact this may have on our sites in Northern Ireland and Morocco as suppliers to the programme, and will evaluate opportunities in other programmes to mitigate any potential impact on our workforce.”
