If A Deal Is Made, It Could Spell The End Of Commercial Aviation At  Bombardier

Negotiations are getting very serious between Mitsubishi Heavy Industries and Bombardier for the Japanese company's acquisition of the CRJ program, according to sources familiar with the talks.

The Air Current reports that Bombardier has been discussing a sale of the CRJ program with several entities, but now the negotiations with Mitsubishi have become exclusive, and are in their late stages. Industry analysts believe that an announcement of the sale could be made at the Paris Air Show which begins June 17. But the unnamed sources also say that the deal may not come to fruition.

Bombardier acknowledged the talks in a release to the media Wednesday. "Bombardier has recently stated it would explore strategic options for the CRJ Program. From time to time, this may lead to discussions with potential counterparties. While Bombardier does not generally comment publicly on market speculation or rumors, in light of recent media reports, Bombardier believes it is prudent to advise stakeholders that it is in discussions with Mitsubishi Heavy Industries, Ltd. with respect to its CRJ Program," the company stated.

"We will not further comment on the nature of the discussions. Before any agreement can be reached further review and analysis by Bombardier management and approval by Bombardier's Board of Directors are required, and Mitsubishi Heavy Industries, Ltd. must complete its due diligence review and own analysis and approval process, which are outside of Bombardier's control. There can be no assurance that any such discussions will ultimately lead to an agreement.

If a deal is made, The Air Current reports that it would likely signal Bombardier's exit from commercial aviation. Bombardier acquired Canadair in 1982 and the CRJ program was developed from the CL-600 business jet.

(Source: Bombardier and as cited. Image from file)

FMI: Source report
www.bombardier.com