Page 32 - World Airnews Magazine June 2020 Edition

JETS

MITSUBISHI SUSPENDS

M100

The SpaceJet has been under develop- about ¥130 billion. In the year before that,

ment since 2008 by Mitsubishi Aircraft, the loss was ¥85.2 billion.
itsubishi Heavy Industries has which is majority-owned by MHI. The type The company has been spending on build-

Msuspended development of was at first called the MRJ. ing additional prototypes and flight testing.

the M100 version of the SpaceJet regional The MRJ90 - seating 88 in an all-economy MHI has closed the purchase of Bom-

jet as one measure in stanching the cash arrangement - became the M90 in June bardier’s CRJ programme, not including its

bleed from the programme. 2019, when the former 76-seat MRJ70 was production facilities.
SpaceJet losses drove the whole MHI dropped and replaced by the 84-seat M100. Earlier the company said it would in

industrial group into loss for the fiscal In its results announcement, MHI seemed fiscal 2020 write down ¥50-70 billion of

year beginning April 2019, according to its to hint at the possibility of deliberately goodwill, assets and liabilities acquired in

annual report. stretching out the program. As one of the transaction. The CRJ programme will

MHI expects in fiscal 2020, further Space- its responses to the COVID-19, it listed become part of a SpaceJet marketing and

Jet losses will offset profits from all its “continuing detailed review of the SpaceJet support unit.

other operations, which range from space schedule in view of the severe market con- The interruption of flight testing at Moses

launch to nuclear power to rail systems. ditions facing commercial aviation and test Lake came just as the programme’s crucial

Deliveries of the first SpaceJet version - the flight-related setbacks.” sixth prototype became available.

M90- will begin in fiscal 2021 or later, the It did not detail those setbacks, but the This aircraft conforms to the new, cer-

company said, repeating the wording it used pandemic has interrupted work at the pro- tifiable design - the result of changes that

three months ago when announcing the gramme’s flight-testing base at Moses Lake, Mitsubishi Aircraft realised in 2016 was

latest delay to the protracted programme. Washington. necessary. Mitsubishi Aircraft has expected

MHI chief executive Seiji Izumisawa an- Another response to the pandemic will this aircraft to carry most of the burden of

nounced suspension of work on the M100 be “setting an appropriate budget consid- remaining flight testing, with two more air-

during a briefing on the results. Plans for ering challenging financial headwinds for craft of the same design to be used mainly

the version will be reconsidered during the MHI Group.” for ground testing.

suspension, he said. The company expects to lose ¥110-130 These and the first five prototypes are

Intended for the North American market, billion ($1-1.2 billion) on the SpaceJet in fis- all built to the M90 standard. The type

the M100 was designed to offer an optimal cal 2020. Since the programme will be earn- is powered by the Pratt & Whitney

combination of range and seating within ing little or no revenue, that figure should PW1200G engine. Q

the weight limits that big U.S. airlines’ pilot be close to the cost of development for the

contracts impose on aircraft operated by year. In fiscal 2019, the loss was ¥263.3 bil- Article courtesy:

outsource carriers. lion, but that included impairment losses of https://aviationweek.com/
World Airnews | June 2020
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