Montreal, Quebec - Canadian aircraft manufacturer announced that it agreed with Mitsubishi Aircraft Corporation for the sale of its CRJ program.
Mitsubishi Aircraft's parent company Mitsubishi Heavy Industries will pay the Canadian company $550 million for the acquisition of its last commercial aircraft program in hand.
With the sale of the CRJ program, Bombardier will no longer be in the commercial aircraft business and rely on its main revenue generators rail transportation and executive jet businesses only.
In 2015, the company struggled with financial problems after it introduced its larger commercial planes (CSeries) ever built by the manufacturer.
Bombardier sold its CSeries to Airbus last year due to these financial difficulties and the import tariffs imposed for the aircraft by the U.S. government. Another Canadian aircraft manufacturer De Havilland has recently taken over the Bombardier's turboprop aircraft program. With the sale of the CRJ program now, the Canadian aircraft manufacturer exits from the commercial aircraft business completely.
The Japanese company will also take over $200 million in liabilities in addition to the Canadian manufacturer’s estimated $180 million interest in a financing structure created to support aircraft leasing deals of the company with airline operators.
Mitsubishi Aircraft will keep the production facilities of the CRJ program in Mirabel, Québec and Bombardier will continue to supply aircraft components and spare parts and produce CRJ jets from the current backlog on behalf of Mitsubishi Aircraft.
The CRJ production from the Canadian manufacturer's current order book will end in the second half of 2020.
Last year, Bombardier blamed the Japanese company of illegally obtaining the company's some secret documents by hiring its former employees and opened a trial against the Mitsubishi Aircraft Corporation in the United States.
In response, the Japanese manufacturer accused its Canadian counterpart of trying to prevent the development and certification of its MRJ jet.