But CRJ sales have slowed to a trickle in recent years with only a handful of new orders, and the line was arguably neglected as Bombardier poured resources into the development of the larger C Series jetliner to go head-to-head against giants Airbus and Boeing. More than 1,900 CRJ aircraft have been sold or ordered since then. End of a 'transformation' - "This transaction (with Bombardier) represents one of the most important steps in our strategic journey to build a strong, global aviation capability," Izumisawa said, and a "significant step in our growth strategy." The sale of Bombardier's money-losing CRJ line, meanwhile, marks the end of an era for the company and for Canada after a three-decade expansion into the aviation sector that began when Bombardier bought Canadair from the Canadian government in 1986. First announced more than a decade ago, the Mitsubishi Regional Jet was to be the first commercial passenger aircraft in nearly half a century - and the first jet airplane - to be developed in Japan. Formerly known as MRJ, the SpaceJet regional aircraft's development has suffered several years of delays and the company is still seeking certification to fly the plane before its first deliveries scheduled for late 2020. Mitsubishi President Seiji Izumisawa said the CRJ program will complement the development and production of its SpaceJet family of commercial jets as the company aims to grow its aviation business. In a statement, Bombardier said Mitsubishi will also assume liabilities totalling $200 million, and take over all maintenance, support, refurbishment, marketing and sales activities for the aircrafts. The sale of the 75- to 100-seat CRJ line - along with its service and support networks in Montreal, Quebec City and Toronto as well as Bridgeport, West Virginia and Tucson, Arizona - is expected to close in the first half of 2020, subject to regulatory approvals. ![]() Bombardier also recently sold its new medium-range C Series jetliners to Airbus, which renamed the line A220, and its Q Series turboprop line to a Canadian investment fund. Announced Tuesday, the deal would transfer the program to Mitsubishi Heavy Industries, which has been seeking to break into aviation, for $550 million. It is still far too early to conclude that the CRJ program is back on track, but this morning’s announcement has the merit of shaking the cards and offering a new hand to Bombardier.Canadian aerospace firm Bombardier is effectively exiting the commercial airline manufacturing sector with the sale of its CRJ Series regional jet program. As the collective agreement between Bombardier employees and the IAMAW has expired, it is quite possible that changes will be required to provide greater flexibility to the employer. Being able to offer seats in all three classes will therefore enable United Airlines to significantly increase its revenues on regional flights where the CRJ-550 will be used.įor Bombardier, now that it has a plan for the future of the CRJ, it will be much easier for it to sit down with CRJ suppliers to renegotiate supply agreements and lower its cost of production. The business customer are the most profitable to the airlines because the price of the ticket in this category is often four to five times higher than that of the ticket in economy class. ![]() But on the contrary it could prove to be very profitable since it will offer seats in first class and in higher economy. Since the CRJ-550 will be heavier than the CRJ 200, one would be tempted to conclude that it will be an economic disaster for airlines. In recent years, the three major US airlines have retired a significant portion of their 50-passenger regional aircraft because their operating cost was too high. The goal of United Airlines is to replace its CRJ-200s that can carry 50 passengers, but in a single class by CRJ-550 that will also carry 50 passengers, while having seats in business class, economy premium and basic economy. The first observation we make is that the CRJ-550 is a CRJ-700 modified to have three classes that can carry 50 passengers and United intends to use it on routes of 900 nautical miles or less. It is an article that refers to the CRJ-550 and that was published in the early hours on February 6 in the USAToday that forced Bombardier ahead of the announcement of its new variant of the CRJ. Covering the aerospace industry has its share of surprises and twists and the announcement of the launch of the CRJ-550 made early this morning by Bombardier is one of those events that no one had anticipated.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |