Mitsubishi Heavy Industries will freeze development of its SpaceJet regional jet as the Covid-19 pandemic squeezes finances and erodes prospects for Japan’s first passenger aircraft in half a century, two sources said.
The sources with knowledge of the decision told Reuters that the plan would be announced along with a medium-term business plan on Oct. 30. They declined to be identified because the plan is not yet public.
A spokesman at MHI’s SpaceJet unit, Mitsubishi Aircraft, declined to comment. The halt was first reported by Kyodo News.
Coronavirus travel curbs around the world have forced airlines to shrink operations to survive. The industry crisis means carriers have little money to buy planes that they may have to keep on the ground until the pandemic ends and demand revives.
