Bombardier tells Mitsubishi 'no cherry-picking' in jet talks - Japanese aircraft maker only wants maintenance operations
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June 10, 2019 - by nikkei.com
NAGOYA/TOKYO -- An attempt by Mitsubishi Heavy Industries to buy only the aircraft maintenance network of Bombardier's CRJ regional jet program has been rebuffed by the Canadian company, which wants to sell both the loss-making production lines as well as the more lucrative services operation.
Bombardier has told MHI it will not allow "cherry-picking," said a person with knowledge of the situation on Friday. Another person familiar with the talks said the Canadian company was insisting on selling the unit as a whole, rather than breaking it up.
The two companies are in advanced discussions about a possible sale of the CRJ, the last of Bombardier's fully owned commercial jet programs.
Although the CRJ program is loss-making a deal could still be worth several hundreds of millions of dollars. Both sides say there is no guarantee of agreement.
MHI's biggest interest lies in CRJ's maintenance and repair operations, which will be critical if Mitsubishi wants to win orders for its passenger jets..