Analysis: How Might Mitsubishi's Woes Boost Embraer?

Mitsubishi’s latest problems might lighten the heavy load Embraer must carry to achieve recovery.

Embraer Commercial Aircraft facilities in Sao Jose dos Campos remain under Embraer control following the collapse of a deal to sell 80 percent of the division to Boeing. (Photo: Embraer)

By Gregory Polek • Senior Editor

May 28, 2020

Mitsubishi’s decision this month to shutter its U.S. offices and most of its flight-test operation in Washington state might have upset the future competitive balance of the regional jet market, as another at least year-long delay to the SpaceJet M90 further damages the program’s credibility. The move leaves all the program’s U.S-based test flight airplanes in limbo and adds to the uncertainty over any real competition in the regional jet market for Brazil’s Embraer.

The decision perhaps shouldn’t have come as a surprise given Mitsubishi Heavy Industries' recently announced plan to slash funding for the 88-seat SpaceJet M90 by more than half and completely suspend development of the 76-seat M100. Those decisions spelled a delay for the expected first delivery of the 88-seat M90 from mid-2020 to sometime in 2021 “or later,” said MHI, while Embraer—still stinging from the collapse of its planned deal to sell 80 percent of its commercial aircraft business to Boeing—considers whether or not to undo its “carveout” of Embraer Commercial Aircraft from the rest of the company.

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