Mitsubishi Heavy Industries (MHI) has announced that given the impact of the COVID-19 pandemic on the aviation industry and the current development status, it has “no choice but to temporarily pause the majority of SpaceJet activities”. The decision was announced by MHI president and CEO, Seiji Izumisawa, when he presented the firm’s 2021 Medium-Term Business Plan. The company adds that it will now “work to review where we stand, make improvements, and assess a possible program restart.” In the presentation, the company reiterates it long-term goal of expanding its commercial aircraft business, and specifically will work to expand the CRJ MRO business since it expects the recovery of narrowbody aircraft to lead to the faster recovery of CRJ and aeroengine businesses.
Moreover, the company states that in order to prepare for market recovery expected from 2024, “MHI will increase production efficiency and drive forward new technology development to participate in future global aircraft programs”.
MHI is reallocating the saved SpaceJet capital to its renewables business – indeed the company has just announced its intention to issue a green bond.
As part of the refocused business plan, SpaceJet’s budget is being slashed to ¥20bn over the next three years. The company intends to make savings in personnel costs by enhancing automation technologies and reorganising its base and supply chain.