Mitsubishi is writing the final chapter in the passenger plane manufacturing project

TOKYO – (Jiji) – Mitsubishi Heavy Industries plans to end its project to manufacture and produce Japan’s first domestically developed small passenger plane, people familiar with the matter said Monday.

The SpaceJet project has been effectively frozen since 2020 due to delays in development work and declining demand for aircraft amid the coronavirus pandemic.

Mitsubishi now believes that the project is unlikely to be profitable.

The SpaceJet project, launched in 2008, is the first attempt by Japan to develop an airliner from scratch since the government-led development of the YS-11 turboprop in the 1960s.

However, due to a lack of development and marketing know-how the project was repeatedly delayed, and development costs expanded beyond expectations. In the consolidated financial results for the fiscal year ending in March 2020, the company reported a loss of 263.3 billion yen related to the aircraft’s development work, which was a burden on management.

(Originally written in English, Jiji Press)