The Q-series turboprop manufacturing business is to be sold off in an effort to cut costs.
The Canadian aircraft and train manufacturer Bombardier says it will cut 5,000 jobs worldwide over the next 12 to 18 months and shut down its turboprop passenger aircraft business.
The company’s $900m disposal programme claims the move will cut costs by $250 million a year by 2021.
Bombardier’s third-quarter results also disappointed investors and shares plunged by 17% on the news in Thursday’s early afternoon trading, the Financial Times reports.
Bombardier is already halfway through a five-year restructuring scheme to reduce the company’s net debt, which stands at around $9.5 billion.
In recent years it has borrowed heavily for research and development, including investing in new planes beyond the regional aircraft market, such as the C-Series, which it was hoped would break the global Airbus-Boeing duopoly.
But enough orders were not forthcoming and earlier this year, the C-Series was transferred to Airbus, which has since renamed it the A220.
Bombardier will now sell its business aircraft pilot and engineering training business to Canadian aviation training provider CAE for $800 million.
Q-series turboprop manufacturing and the de Havilland brand, meanwhile, will be sold to Longview Aviation Capital for $300 million. Both deals should close in the second half of 2019, the FT writes.