REUTERS: Bombardier Inc said on Tuesday it will sell its money-losing regional jet business to Japan's Mitsubishi Heavy Industries Ltd for US$550 million in cash, in a deal marking the Canadian plane and train maker's exit from commercial aviation.
In an interview, Bombardier Chief Executive Alain Bellemare said some proceeds from the deal would go toward paying down debt, although he would not offer specifics.Bombardier has an additional US$400 million liability from residual value guarantees provided to airlines on the regional jet program.Bombardier will continue to assemble its regional jet planes , but will stop making the aircraft in the second half of 2020, after it finishes delivering its remaining backlog of 42 orders.
Mitsubishi is"committed" to Bombardier's workforce, such as its engineers and customer support workers, Lochmann said by phone from Japan. He could not comment on CRJ production workers.Mitsubishi is trying to develop its MRJ program, which has been rebranded as"SpaceJet."