Media reports on Monday , 6th of February was abuzz with the news that Japan’s Mitsubishi Heavy Industries (MHI) is planning to terminate the development of Japan’s first domestically manufactured passenger jet.
Reacting to those media reports , Mitsubishi Heavy Industries released a statement saying ,
Today, there were several media reports claiming that MHI has decided to discontinue SpaceJet Project development. These stories are not based on any announcement by Mitsubishi Heavy Industries or Mitsubishi Aircraft Corporation, an MHI Group company.
While it is true that MHI is considering a variety of possibilities regarding this matter, we will release any information requiring disclosure promptly in the event that any decision has been made. *SpaceJet is a regional jet in development by Mitsubishi Aircraft Corporation.
About $7.6 billion had been pumped into the SpaceJet project, officially launched in 2008, but the company suspended it in October 2020 after it was hit by repeated delays due to a lack of expertise and the coronavirus Pandemic.
However, Today, on 7th of February, the company has confirmed the discontinuation of the Program saying ,
Mitsubishi Heavy Industries announces the discontinuation of SpaceJet* development activities, which had been pursued by Mitsubishi Aircraft Corporation, a consolidated MHI Group company. *SpaceJet is a regional jet in development by Mitsubishi Aircraft Corporation.
Moreover, this decision will have no material impact on MHI’s financial results, both consolidated and non-consolidated.
For more information on this topic, please refer to pages 23 of the Q1-3 FY2022 Financial Results briefing presentation materials, which were released today.
Mitsubishi Heavy Industries had collaborated with Japan’s industry and transportation ministries to develop a single-aisle passenger aircraft with 70 to 90 seats. Understandably , the Program pause during Pandemic and a lack of prospects for commercialisation has forced the company to discontinue the activities.
The company was gradually ramping down the development since October 2020, that included closing down its flight test base in the United States. The project had high hopes among many aircraft parts suppliers in Japan, but postponing the Delivery six times almost killed the program.
Followed by the temporary Pause , Last year , one of the Mitsubishi Aircraft Corporation MRJ-90STD test Aircraft (JA23MJ) was deregistered by Japan Civil Aviation Bureau with a note "Not to be used for aviation" , Other three prototypes those had the Japanese Registration were JA21MJ, JA22MJ , JA24MJ.
Mitsubishi Heavy Industries has some reasons behind the discontinuation of the program , which they figured out and divided into four different Verticals — 'Technology' , 'Product' , 'Customer' and 'Funding' , and issues related to them.
Issues under Technology were highlighted as "Partial revisions needed to prolonged development, and Decarbonization solutions also required."
About the Product , they said , " Difficult to obtain understanding and necessary cooperation from global partners". On Customer head , they believed , " Little progress on scope clause (condition related to aircraft number and size included in airline-labor union agreements) relaxation resulted in M90's not meeting North American RJ market needs.
Issues under Funding highlighted "Further extensive funding required to continue Type certification acquisition process. Business not feasible in the market environment described above".
However , Mitsubishi Heavy Industries plans to concentrate OEM business with CRJ Program , and apply knowledge and experience to F-X (next generation fighter) program.
