June 25, 2019, © Leeham News: Mitsubishi Heavy Industries and Bombardier today announced an agreement in which MHI will acquire the CRJ program, subject to customary shareholder and regulatory approvals. Closing is expected in the second half of next year.
The CRJ program includes the airplane, the global product support and sales force, manufacturing facilities and other assets. A CRJ installed customer base of 1,300 airplanes and more than 130 operators worldwide.
“Bombardier will continue to supply components and spare parts and will assemble the current CRJ backlog on behalf of MHI. CRJ production is expected to conclude in the first half of 2020, following the delivery of the current backlog of aircraft,” the companies said in a statement.
June 24, 2019, © Leeham News: Heard around the Paris Air Show last week:
Reporters long used to the entertaining and sometimes acerbic tongue former super-salesman John Leahy wondered how Christian Scherer would compare.
Scherer’s own sharp tongue began to emerge at the Airbus Innovation Days pre-air show briefing last month and got sharper at the executive round table the Friday before and on Day 1 of the international event.
On Day 2, Boeing and International Airlines Group (British Airways, et al) stunned the world journalists and Airbus with the LOI for 200 737 MAXes. On Thursday, Scherer expressed his displeasure.
The deal wasn’t unprecedented. In the 1990s, Boeing blindsided Leahy with an exclusive deal with American Airlines, followed by Delta and Continental airlines. “I was…pissed,” Leahy told LNA years later.
It seems Scherer is following in Leahy’s shoes in more ways than one.
The launch of the A321XLR was totally expected. The top question: does this kill the Boeing NMA? (LNA’s answer: Nope.)
By Judson Rollins
June 17, 2019, © Leeham News, Paris: Senior executives from Mitsubishi Aircraft Company (MITAC) and parent Mitsubishi Heavy Industries (MHI) described the long journey to the revamped “SpaceJet” M90 and M100 aircraft. They also commented on what market role the SpaceJet could potentially fulfil, as well as potential incremental improvements to the aircraft.
MHI chairman Shunichi Miyanaga said that market conditions and competitive landscape have changed in the company’s favor as the need for regional jet replacement has grown and competition has dwindled down to just a single player, Embraer.
June 13, 2019, © Leeham News: Mitsubishi Aircraft Corp. (MITAC)’s redesign of the MRJ70 and launch of the M100 SpaceJet in its place reflects a changing market environment when the MRJ program was launched more than a decade ago.
Then, MITAC—and Embraer—thought the restrictive US Scope Clause with the pilots’ unions of US major carriers would be relaxed by now.
MITAC launched the MRJ90 90-seat aircraft, to be followed by the MRJ70, a 70-seat airplane. Embraer launched the E175-E2 re-engined model of the popular E175.
Neither complied with Scope as then defined, specifically the maximum takeoff weight of 86,000 lbs. Each exceeded this limit by about a ton.
(There are restrictions as to the number of seats and number of airplanes that can be operated by regional airline partners, too, but it’s the weight limit that’s the key issue here.)
By Bryan Corliss
June 11, 2019, © Leeham News: © — A deal by Mitsubishi Heavy Industries to acquire the CRJ program from Bombardier would make abundant sense for Mitsubishi Aircraft Corp – taking a struggling competitor off the board, acquiring hard-to-find human capital assets, and taking over an established North American American supplier network and a global product support system.
And recent unconfirmed reports that MITAC also is considering a North American final assembly site would make a lot of sense for a company that’s looking to cut production costs – and get closer to some likely key customers.
Yet while everyone in the industry is talking about the potential links between MITAC and the Montreal-based CRJ, nobody’s saying much about the company’s future in Moses Lake (WA). But overlooking Mitsubishi’s growth over the past two years there would be a mistake, because the company certainly is acting like it intends to plant roots there in the Eastern Washington farm country.
June 10, 2019, © Leeham News: Embraer is in a holding pattern of sorts.
It can’t coordinate with Boeing about synergies until these approvals come.
Its leadership is identifying areas that, from its perspective, can lead to synergies.
Some key campaigns for the E-Jet E2 appear to be on hold while customers wait for Boeing and Embraer to join in order to see how pricing may be reset, competition with the Airbus A220 shapes up, what synergies between the E2 and Boeing’s 7-Series product lines might emerge and how Embraer’s Services unit integrates with Boeing Global Services.
June 10, 2019, © Leeham News: Embraer is 50 years old Aug. 19.
This must be the classic case of mixed feelings. By the end of the year, if regulators approve, the marquis business unit, Commercial Aviation, will be spun off and the Embraer name for it disappears into Boeing Brasil-Commercial (BB-C).
Boeing will own 80% of the new joint venture and Embraer retains 20%. Boeing has the governance and chairman. Embraer’s CEO of Commercial Aviation becomes president and CEO of BB-C, but the direction now will clearly be set by Boeing.
Sixty percent of Embraer’s services unit goes into BB-C.
Embraer and Boeing also created a second JV, for the KC-390 program. Embraer retains 51% and Boeing gets 49%.
Embraer retains full control over the remaining defense and business jet units.
Officials put a “best face” on the pending changes at Embraer’s pre-Paris Air Show briefings May 27-29, but they really could not mask the uncertainties and, to some degree, resignation about the future.
By Bjorn Fehrm
June 5, 2019, © Leeham News.: The Air Current broke the news earlier today Mitsubishi Heavy Industries (MHI) is negotiating with Bombardier to buy the CRJ program.
BBC has got comments from both companies confirming the discussions, with cautions nothing is settled and it can still result in a no deal. Should it happen it would make a lot of sense for both parties.
UPDATE: Bombardier has issued a statement confirming the discussions, see below.
June 3, 2019, © Leeham News: Airbus and Embraer are 50 years old this year.
Airbus broke out the party hats last Wednesday. It arranged a formation flying of all its in-production aircraft, including the Beluga XL. It launched a website microsite with its history. A new book, Airbus, The First 50 Years, has been issued. A celebration is planned for the Paris Air Show.
Embraer’s anniversary is Aug. 19, so at this point, its party plans haven’t been solidified, but there will likely be something at the Paris Air Show. Embraer plans to have its new specially painted E195-E2 at the air show.