Views Article – Sharenet Wealth

Asia, Europe

Deliveries of Mitsubishi’s SpaceJet face fresh delay – Nikkei

* First delivery had been expected in mid-2020

* Would represent 6th delay for regional jet programme

* ANA is set to receive the first plane (Adds statement to stock exchange, analyst comment)

Oct 22 (Reuters) – Japan’s Mitsubishi Aircraft Corp is seeking to postpone deliveries of its SpaceJet regional airplane as it battles delays in securing regulatory certification, with one option being a six-month delay from a mid-2020 target date, the Nikkei newspaper said.

Such a delay would be the sixth for the programme, which aimed to revive Japan’s dormant commercial aviation industry.

A new first delivery target date could be set next month, the paper said on Saturday, without citing a source. The plane, this year renamed the SpaceJet instead of the Mitsubishi regional jet, was originally due to enter service in 2013.

Jefferies analyst Sho Fukuhara said in a note to clients that the delays, if confirmed, could trigger market concerns about Mitsubishi Heavy Industries Ltd, the planemaker’s largest shareholder.

Mitsubishi Heavy told the stock exchange on Monday that the planemaker was putting its “utmost effort” into completing certification and was sharing information about the schedule with all relevant parties. It did not provide an update on its delivery schedule.

ANA Holdings Inc, Japan’s largest airline by revenue, is due to be the first customer for the plane.

Nikkei said the manufacturer would probably begin to hash out compensation for the delay, which would push the entry into service beyond the Tokyo Summer Olympics next year.

ANA did not respond immediately to a request for comment on Tuesday, a public holiday in Japan. (Reporting by Jamie Freed in Singapore; Additional reporting by Allison Lampert in Las Vegas and Tim Kelly in Tokyo; Editing by Clarence Fernandez and Stephen Coates)

© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.
Array ( )