Bombardier Concludes Sale of the CRJ Series Regional Jet Program to Mitsubishi Heavy Industries

Bombardier confirmed on Monday the closing of the previously announced sale of the CRJ Series aircraft program to Mitsubishi Heavy Industries, Ltd for a cash consideration of approximately $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 $200 million. Under the agreement, the Corporation’s net beneficial interest in the Regional Aircraft Securitization Program (RASPRO), which is valued at approximately $170 million, has been transferred to MHI.

Through this sale, MHI acquires 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 March 31, 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 $288 million as of March 31, 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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Major developments for Bombardier as it launches a new innovative 50-seater aircraft

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The CRJ550 is based on the firms CRJ700 and United Airlines is the launch customer of this new model. 

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Chorus Aviation honoured with Bombardier's top Reliability Awards

Chorus Aviation announced today that its subsidiary, Jazz Aviation LP ('Jazz'), has once again been recognized for achieving superior reliability performance in 2017 at Bombardier's annual award ceremony for commercial aircraft operators held in Orlando, Florida on April 23, 2018.

"We are honoured to be the North American award winner in two categories of exceptional reliability performance," said Colin Copp, President, Jazz. "This recognition can be attributed to the exceptional expertise of Jazz Technical Services and Maintenance and Engineering teams, and their unrivalled experience with Bombardier regional aircraft as an Authorized Service Facility (ASF)."

Jazz is the North American recipient of Bombardier's 2017 Airline Reliability Performance Awards in two categories:

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