05 Aug 2020
Posted in Aerospace, Defense & Security
Despite COVID-19, MHI focuses on mid to long term growth with faith in SpaceJet future, says GlobalData
Mitsubishi Heavy Industries (MHI) doesn’t appear to have lost faith in its SpaceJet program, despite the arm representing 96.4% of its reported losses for Q1. The company’s forward statement for the year suggests the company will ensure the M90 program has the support needed for its completion and commercial production. The changes in the market place due in part to COVID-19 and the possibility for MHI to be a leading supplier of regional jets gives the company the right scenario to focus on the completion of the M90 program and crucially, in time, the M100 focused on the US market says GlobalData, a leading data and analytics company.
Mathew George, Ph.D., Aerospace & Defense Analyst at GlobalData, comments: “According to GlobalData, the share of single-aisle aircraft in the APAC commercial fixed wing aircraft market is expected to grow from 47.2% to 83.2% between 2020 and 2030, when compared to global market share growth of 47.2% to 74.7% over the same period. For regional jets, where the M100 will be placed, that global market share will grow from 3.6% to 3.7% – if the M100 is developed with the focus on the crucial US market. With Embraer struggling, and Bombardier a part of MHI now, this area looks like a lucrative proposition for MHI to focus on – ensuring the development phase of the M90 can be completed by the time the market rebounds from the effects of COVID-19.”
As has occurred in other parts of the world, MHI’s Aircraft, Defense and Space business was able to see an increase in revenue in only the defense and space portion, with these areas requiring timely orders and cash flow to ensure a country’s strategic interests are secured both during and after the pandemic.
George continued: “The decline in the commercial aircraft and SpaceJet side can be directly attributed to the pressures created on the civil aviation market by COVID-19. However, the changed environment could provide MHI the time to focus purely on product development and certification to have a product available for market when sentiments and demand start to change.”
If you would like to know more,send your questions to Rebecca Panks, PR Executive at GlobalData (email@example.com)