Mitsubishi Heavy to Halve Budget for SpaceJet Project
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Tokyo, May 11 (Jiji Press)--Mitsubishi Heavy Industries Ltd. <7011> said Monday it will reduce its budget for the SpaceJet small passenger jet project for the year ending next March by half from the year before to 60 billion yen.
The decision comes as the Japanese company's bottom line is being hit hard by the fallout from the coronavirus pandemic.
"We will proceed with the project at an appropriate scale while taking into account the difficult circumstances the group faces," Mitsubishi Heavy President and Chief Executive Officer Seiji Izumisawa told an online press conference.
Also, the company will temporarily halt the development of a 70-seat-class SpaceJet, which is designed to meet demand in the U.S. market.
Mitsubishi Heavy will "reconsider plans" for the 70-seater, while suspending its work for the time being, Izumisawa said. The delivery of the jet was set to start around calendar 2023.
[Copyright The Jiji Press, Ltd.]