Bombardier to sell Commercial Aircraft Business

[TomVexille]

It was announced today that Bombardier is going to sell their regional jet business to Mitsubishi Heavy Industries.

Bombardier Inc said it will sell its money-losing regional jet business to Japan’s Mitsubishi Heavy Industries Ltd (MHI) for $550 million in cash, in a deal marking the Canadian plane and train maker’s exit from commercial aviation.
Montreal-based Bombardier has been selling off its weaker-performing commercial plane programs aimed at airlines to focus on profitable business jets and passenger rail cars. The company faced a cash-crunch in 2015 while bringing a larger narrowbody jet to market.
The deal, which Bombardier said was completed at 6:30 a.m. ET (1030 GMT) on Tuesday, is expected to close in the first half of next year.
Under the agreement, the Japanese firm will take over $200 million in liabilities, but receive Bombardier’s estimated $180 million interest in a financing structure it created to support aircraft leasing.

Bombardier exits commercial aviation with sale of regional jet business to Mitsubishi

Bombardier Inc said it will sell its money-losing regional jet business to Japan's Mitsubishi Heavy Industries Ltd (MHI) for $550 million in cash, in a deal marking the Canadian plane and train maker's exit from commercial aviation.

www.reuters.com

No word if this includes the Dash 8, but if they are exiting the commercial aircraft business it seems likely.

This should mean that Mitsubishi finally get their struggling jet business off the ground.

 

[Mr Pumblechook]

The Dash 8 was sold to Viking, who already own all the other prop type certificates of Bombardier.

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www.bcbusiness.ca