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Japan's SpaceJet maker closes overseas sites, mulls cuts at home amid coronavirus squeeze

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TOKYO: SpaceJet regional aircraft maker, Mitsubishi Aircraft, said it is closing overseas operations that employ hundreds of people and may cut staff at home after its parent company slashed the development budget for Japan's first commercial aircraft in a century.

The move, which comes as the Covid-19 pandemic wreaks havoc on the aviation industry, casts doubt over the future of Japan's commercial aircraft ambitions and will at the very least delay certification of Mitsubishi's first plane, the M90.

"The company has had to make difficult decisions that will significantly reduce its global activities and will have a major impact on its entire organisation," a spokesman told Reuters. Closures will include offices in Washington State and Montreal, Canada, with Mitsubishi Aircraft keeping a small team of engineers to carry out aircraft maintenance at its test site in Moses Lake, a three hour drive from Seattle, the company said.

This is the latest and most serious setback yet for an aircraft programme that has already been delayed six times. The first Mitsubishi regional jet was supposed to go into operation in 2013, but will not be delivered to launch customer ANA Holdings until after March next year.

 

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