Mitsubishi Heavy Industries plans to make a fresh investment of ¥200 billion in the Mitsubishi Regional Jet project, sources said.
Of the funds, the heavy machinery maker intends to use about ¥120 billion in fiscal 2018 ending March to ensure it can deliver the first unit of the small jetliner in mid-2020, sources said Saturday.
In a report Thursday, Masanori Koguchi, MHI’s senior executive vice president, said the end of the project to develop Japan’s first domestically made jetliner “is coming into sight.”
Mitsubishi Aircraft Corp., the subsidiary undertaking the project, saw debts exceed assets by some ¥110 billion in fiscal 2017 due to a cost spike stemming from a substantial development delay.
MHI plans to eliminate excessive liabilities through, among other methods, a debt-for-equity swap this year using part of the ¥120 billion, sources said.