Mitsubishi Heavy to Provide Aircraft Arm with 220 B. Yen in Aid
Tokyo, Oct. 31 (Jiji Press)--Mitsubishi Heavy Industries Ltd. <7011> said Wednesday that it will provide its financially troubled aircraft arm with 220 billion yen in financial assistance in December.
The financial aid will help Mitsubishi Aircraft Corp. wipe out its negative net worth, which stood at 110 billion yen as of March, and will leave it with 110 billion yen in net assets.
The company's financial difficulty stems from a delay in the development of the Mitsubishi Regional Jet, the first Japanese-made small passenger jet.
Shunichi Miyanaga, president and chief executive officer at Mitsubishi Heavy, suggested that no additional aid will be provided to the aircraft unit for the time being.
Costs for developing the MRJ and preparing for its first delivery, currently scheduled for the middle of 2020, will be financed by the latest aid, Miyanaga told a news conference.
[Copyright The Jiji Press, Ltd.]