Bombardier Concludes Sale of CRJ Series Regional Jet Program to Mitsubishi

Bombardier has concluded the sale of the CRJ Series aircraft program to Mitsubishi Heavy Industries (MHI) for a cash consideration of approximately US$550 million, subject to post-closing adjustments and the assumption of liabilities by MHI related to credit and residual value guarantees and lease subsidies amounting to approximately US$200 million.

Under the agreement, Bombardier’s net beneficial interest in the Regional Aircraft Securitization Program (RASPRO), valued at approximately US$170 million, has been transferred to MHI.

Through this sale, MHI has acquired the maintenance, support, refurbishment, marketing, and sales activities for the CRJ Series aircraft, including the related services and support network located in Montréal, Québec, and Toronto, Ontario,  and its service centres located in Bridgeport, West Virginia, and Tucson, Arizona, as well as the type certificates.

Bombardier will continue to supply components and spare parts and will assemble the remaining 15 CRJ aircraft in the backlog as of 31 March 2020 on behalf of MHI until the complete delivery of the current backlog, expected in the second half of 2020.

Bombardier retains certain liabilities representing a portion of the credit and residual value guarantees totalling US$288 million as of 31 March 2020. This amount is largely fixed and not subject to future changes in aircraft value and is mainly payable by Bombardier over the next four years.

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