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Mitsubishi Heavy to halt SpaceJet project

Oct 31 (NHK) - Mitsubishi Heavy Industries says it will suspend the development of Japan's first domestically produced passenger jet, citing uncertainty about a recovery in demand during the coronavirus outbreak.

President and CEO Izumisawa Seiji told reporters on Friday that he offers his deep apologies for halting the regional SpaceJet program.

He said the company will go ahead with procedures to obtain safety certification, but also acknowledged that problems have been found. Test flights will also be suspended.

Mitsubishi Heavy plans to cut the program's annual budget by 90 percent from last year to about 7 billion yen, or about 67 million dollars.

The SpaceJet program started in 2008. But the commercial delivery of the aircraft has been postponed due to reasons including mechanical issues.

Demand for aircraft is expected to remain sluggish. Observers say Mitsubishi currently deems it difficult to invest more into the project due to poor business performance.

Source: ANNnewsCH

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