Tuesday, June 25, 2019

Bombardier exits commercial air

Bombardier Inc. said on Tuesday it will sell its money-losing regional jet business to Japan’s Mitsubishi Heavy Industries Ltd (MHI) for $550 million in cash. It marks the Canadian plane and train maker’s exit from commercial aviation. Montreal-based Bombardier had combined its aviation units to focus more on profitable business jets and passenger rail cars, after facing a cash-crunch in 2015 while bringing its flagship commercial jet to market. As part of the deal, expected to close in the first half of next year, the Japanese company will also take over a $200 million debt. Bombardier will continue to assemble its regional jet planes (CRJ), but will stop making the aircraft in the second half of 2020 after delivering its remaining orders. (Source: Reuters, 06/25/19) Gulf Coast note: Bombardier last year agreed to make Airbus a majority partner in a partnership that builds the A220, the former Bombardier CSeries. A new production line is being built in Mobile, Ala. Previous related