Introduction
Mitsubishi Heavy Industries, Ltd. (MHI) announced the termination of their SpaceJet development program on May 13, 2021. The SpaceJet was designed to be the next generation of regional jets, capable of carrying between 70 and 90 passengers. The SpaceJet development program has been running since 2008 and had been tasked with delivering a more efficient and reliable regional jet. This decision will have a significant impact on regional air travel, especially on the Japanese market, and leaves the future of Mitsubishi’s aerospace division uncertain.
Mitsubishi Terminates SpaceJet Development
Mitsubishi Heavy Industries, Ltd. (MHI) announced the termination of their SpaceJet development program on May 13, 2021. The SpaceJet was designed to be the next generation of regional jets, capable of carrying between 70 and 90 passengers. The decision to terminate the program was made due to an inability to secure a sufficient number of orders for the aircraft, leading to difficulties in executing a viable business model for the jet. The SpaceJet program had been running since 2008 and had been tasked with delivering a more efficient and reliable regional jet.
The SpaceJet development program had already been delayed multiple times, with the first flight postponed to 2021 from an original target of 2017. In addition, the aircraft was not expected to be certified until sometime in 2023, making the program’s future even more uncertain. MHI had put considerable effort into the project, investing over 800 billion yen ($7.4 billion) into the development of the SpaceJet. However, the project saw minimal customer interest with only 38 orders for the jet since its launch in 2019.
Impact on Regional Air Travel
The termination of MHI’s SpaceJet development program will have a significant impact on the regional air travel market, especially in the Japanese market. The SpaceJet was expected to be an ideal solution for airlines looking to replace aging fleets of regional jets, however, this is now no longer a viable option. Additionally, the termination of the SpaceJet program leaves Mitsubishi without a product in the market, with the MRJ (Mitsubishi Regional Jet), their existing regional jet, having been cancelled in 2019 due to a series of production delays.
The termination of the SpaceJet program is seen as a major setback for MHI and represents a significant loss of potential revenue. The SpaceJet was expected to be a major part of MHI’s aerospace division and the cancellation of the program could have a detrimental effect on MHI’s future in the aerospace industry.
What Lies Ahead for Mitsubishi
The termination of the SpaceJet program has left the future of Mitsubishi’s aerospace division uncertain. MHI is facing the prospect of having to develop new aircraft in order to remain competitive in the aerospace industry. In the short-term, MHI has committed to continuing the development of their jet engines, the LEAP engine, which is the core of their aerospace business. The LEAP engine is used in the Airbus A320neo and the Boeing 737 MAX and is expected to generate significant revenue for MHI in the future.
MHI has also expressed its commitment to the regional jet market and has stated that it will explore other opportunities to produce regional jets. The company has also expressed an interest in developing electric aircraft, which could be used for regional air travel. It remains to be seen what the future holds for MHI and their aerospace division, but the termination of the SpaceJet program marks a significant setback for the company.
Conclusion
The termination of Mitsubishi’s SpaceJet program marks a significant setback for the company, with the potential to have a detrimental effect on the future of their aerospace division. The decision will also have a major impact on regional air travel, especially in the Japanese market, with the SpaceJet no longer being a viable option for replacing aging fleets of regional jets. MHI has committed to exploring new opportunities in the aerospace industry, with an interest in developing electric aircraft and continuing the development of their jet engines. As the aerospace industry continues to evolve, it will be interesting to see what the future holds for Mitsubishi and its aerospace divisions.
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