Bombardier suspends business-jet program

Firm to focus on medium-sized passenger aircraft

Around a thousand employees in Mexico and the United States will lose their jobs as Canadian manufacturer Bombardier suspends its business-jet program due to “weak market demand”. The job cuts follow more than 1,800 in July 2014 and 1,700 in December 2013.

Bombardier will also take a hit in its fourth quarter from US$1.4 billion in development costs sunk into the Learjet 85 business aircraft.

“The pause is due to weak demand for the Learjet 85 aircraft,” the company explained, pointing to a 20% drop in orders in 2014. “This reflects the continued weakness of the light aircraft category since the economic downturn.”

However, the company will renew its focus on its medium-sized passenger aircraft, the CSeries and the Global 7000/8000. The 100-125-seat medium-range CSeries represents its entry into a market dominated by Airbus and Boeing.


[photo courtesy Bombardier]


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