UPDATED: Mitsubishi Heavy confirms SpaceJet is cancelled

UPDATE: Mitsubishi Heavy Industries announced the discontinuation of SpaceJet development activities, which had been pursued by Mitsubishi Aircraft Corporation, a consolidated MHI Group company. Moreover, this decision will have no material impact on MHI’s financial results, both consolidated and non-consolidated. PREVIOUS REPORT Media reports said Monday (6 February) that Japan’s Mitsubishi Heavy Industries (MHI)  plans to terminate the development of Japan’s first domestically manufactured passenger jet. 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. Mitsubishi Heavy joined forces with Japan’s industry and transportation ministries to develop a single-aisle passenger jet with 70 to 90 seats. However, a lack of prospects for commercialisation has forced the company to withdraw, the media reports said. MHI issued a statement after the reports emerged, 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.” The company has been gradually ramping down development since freezing the project, including closing down its flight test base in the United States. The project initially raised hopes among many aircraft parts suppliers in Japan, which were only providing parts to overseas giants such as Boeing and Airbus. But Mitsubishi Heavy failed to meet its delivery date, which was first set in 2013 and had been postponed six times. It did manage to succeed in its maiden flight in 2015. Mitsubishi Heavy said it still maintains about 270 orders for the aircraft as of Monday. It had as many as about 450 orders at one point, but the figure has decreased due to cancellations by airline customers. For Editorial Inquiries Contact: Editor Matt Driskill at [email protected] For Advertising Inquiries Contact: Head of Sales Kay Rolland at [email protected]