Mitsubishi to acquire Bombardier’s regional jet unit for US$550m

Mitsubishi Heavy Industries said it would acquire Bombardier’s regional-jet business for US$550m in a transaction that puts the companies on different paths in the aviation sector. The deal unveiled Tuesday marks the Canadian company’s exit from the commercial passenger-aircraft business following failed bets that it could compete with Airbus and Boeing in the 100-seat single-aisle plane category. Bombardier has restructured its aviation division over the past 2 years, highlighted by its joint venture with Airbus that put the European plane maker in charge of the production and sales of the 110- to 130-seat planes that the Montreal company had originally conceived as the CSeries. Those jets are now rebranded as the Airbus A220. Bombardier will now focus on its business-aircraft franchise and its rail division. <br/>