Mitsubishi Heavy Announces Pullout from Small Jet Development

Tokyo, Feb. 7 (Jiji Press)--Mitsubishi Heavy Industries Ltd. <7011> announced Tuesday that it has decided to end the development of the SpaceJet, formerly known as the Mitsubishi Regional Jet.

The decision reflects a dim outlook for commercializing what would have been the first Japanese-developed small passenger jet. The project has been effectively on hold since October 2020 due to a series of issues, including design changes, as well as the fallout of the novel coronavirus crisis.

Mitsubishi Heavy will liquidate subsidiary Mitsubishi Aircraft Corp., in charge of the development of the jet.

"It's very regrettable that we have come to the conclusion to end the development although we received state support," Mitsubishi Heavy President and CEO Seiji Izumisawa told a news conference in Tokyo. On management responsibility, Izumisawa said only: "It is a long-term project spanning over a decade. The company held discussions and made decisions at each juncture."

The company has received orders for 267 units of the SpaceJet from such airlines as ANA Holdings Inc. <9202> and Japan Airlines <9201>. "We're sorry that we can't deliver" the jet, Izumisawa said while refraining from commenting on the issue of possible compensation to the airlines.

[Copyright The Jiji Press, Ltd.]