Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

Mitsubishi accuses Bombardier of trying to limit competition for regional jets

Published 2019-01-28, 08:11 p/m
© Reuters.  Mitsubishi Aircraft accuses Bombardier of trying to limit competition for regional jets

* Mitsubishi Aircraft makes claim in countersuit

* Bombardier says M'bishi Aircraft illegally stole trade secrets

* Mitsubishi Regional Jet would compete with Bombardier's CRJ

MONTREAL, Jan 28 (Reuters) - Mitsubishi Aircraft Corp on Monday accused Bombardier Inc BBDb.TO of using "anticompetitive conduct" to limit competition for planes with under 100 seats, as the Japanese company works to bring its long-delayed regional jet to market.

In October, the Montreal-based plane-and-train-maker sued the aircraft unit of Mitsubishi Heavy Industries Ltd 7011.T , alleging that former Bombardier employees passed on trade secrets to help with the development and certification of the company's new MRJ regional jet. MRJ would compete with regional jets produced by Bombardier and Brazil's Embraer SA EMBR3.SA .

Mitsubishi said in a counter-filing claim that Bombardier tried to coerce it and Seattle-based Aerospace Testing Engineering & Certification (AeroTEC) to sign no-poach agreements in 2016 that would stop them from hiring Bombardier's employees.

Bombardier Chief Executive Alain Bellemare also implicitly threatened the continuation of its "supply relationship" with Mitsubishi Heavy in a 2016 letter to board chairman Hideaki Omiya unless the Japanese company "ceased the solicitation of Bombardier employees," Mitsubishi said in the claim.

"We believe that in response to the threat posed by the MRJ, Bombardier has chosen to engage in a pattern of anticompetitive conduct instead of competing on the merits of its product," said Mitsubishi in a company statement.

"Bombardier has threatened, pressured and sought to coerce Mitsubishi Aircraft, its U.S.-based partners, and individual employees working on the MRJ program."

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Mitsubishi's regional jet program, Japan's first passenger plane since the 1960s, has been delayed by several years, with first customer ANA Holdings Inc 9202.T now expecting the 90-seater plane in 2020, rather than in 2013 as originally envisaged.

Bombardier has said it hopes to make a decision this year on the future of its money-losing CRJ regional jet as it "aggressively" pursues new orders to secure its industrial future. response to the latest filing, Bombardier repeated its view that its rival was illegally trying to obtain and use its trade secrets.

"Mitsubishi Aircraft Corporation's attempt to recast the dispute as anything other than Bombardier's justified protection of its intellectual property is misguided and disingenuous," it said in a statement.

"Bombardier will vigorously enforce its rights and that includes holding (Mitsubishi Aircraft), AeroTEC and individual wrongdoers accountable."

In the October lawsuit, Bombardier accused Mitsubishi Aircraft of violating the Defend Trade Secrets Act of 2016 by trying to use the confidential data and documents obtained from former employees to accelerate the "extremely complex and costly" process of getting its planes certified.

Mitsubishi Aircraft asked a U.S. court in December to dismiss Bombardier's lawsuit, arguing that the allegations were baseless and designed to "disrupt development" of its rival jet. Bombardier sues Mitsubishi jet program over trade secrets

Bombardier CEO sees decision on loss-making CRJ jet this year

Mitsubishi seeks dismissal of Bombardier trade secrets case

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.