Mitsubishi Heavy to Buy Bombardier's Small Jet Biz

Economy

Tokyo, June 25 (Jiji Press)--Japan's Mitsubishi Heavy Industries Ltd. <7011> said Tuesday that it will acquire Canadian aircraft maker Bombardier Inc.'s small jet business for some 550 million dollars.

Mitsubishi Heavy aims to utilize Bombardier's know-how in customer services to win more orders for its own small jet called SpaceJet.

The SpaceJet, the first Japanese-developed small passenger jet, is currently being developed by Mitsubishi Aircraft Corp., a unit of Mitsubishi Heavy.

Mitsubishi Heavy will acquire maintenance, support, refurbishment, marketing and sales activities as well as the type certificate for Bombardier's Canadair Regional Jet program. The program's manufacturing operations will not be included in the deal.

The Japanese company will also take over some 200 million dollars in liabilities from Bombardier.

[Copyright The Jiji Press, Ltd.]

Jiji Press