Net business aircraft orders dropped to 19 from 46 a year earlier in the first quarter, with weakness in the Global program, according to Chief Executive Officer Alain Bellemare.
Bombardier said the job reductions will begin in June and continue through the first quarter of 2016. About 1,750 employees - up to 1,000 in the Montréal region, up to 480 in Toronto and up to 280 in Belfast - will be affected. Bombardier has nearly 70,000 employees, including about 11,600 in its business aircraft unit.
Aviation is the canary in the gold mine in terms of the world economy and we are headed into another debt related recession.
today, I would certainly not consider bombardier as a barometer to determine world's economic health. would they admit the loss of customer to rival falcon and gulfstream ? of course not.planemikey wrote: Aviation is the canary in the gold mine in terms of the world economy and we are headed into another debt related recession.
where do you see debt crunch and looming payment default but in Greece ?
today's situation is very different from 2008 I'd say.
But I don't think bombardier is slowing because of loss of sales to Falcon and Gulfstream. Falcon is a small company relatively. They produce just around hundred bizjets a year. Bombardier produces many times that. And Gulfstream aircraft have their own niche....the only ones that compete head to head are G550 and Global. Sales at bombardier are slumping because the only strong part of the biz jet market is slowing for all manufacturers. (The real heavy metal like globals, g550' 650' and falcon 900 and 7x) They had a huge burst of sales on the global 7000/8000 and g650er's a while back and now all the buyers are waiting for certification and delivery. The 605/650's are nearing the end of their production life, and have gone from 2 lines to 1 production line. And the smaller jets like Lear 75 are slow in general across the whole industry.
Yes competition is a factor....but a small one. The real factor is the overall biz jet market. However, I would agree that this indicator is no way a accurate measure of where global performance is going. If anything, bizjet manufacturers performance trails significantly behind global economic performance. The economy is picking up now (however slowly....and anybody who says otherwise hasn't looked at restaurant/airfare/hotel room price trends and availability over the past 5 years) and bizjet sales will follow....might be a couple years tho.
But political issues also play a part....no doubt sanctions against Russia hurt both Gulfstream and Bombardier sales and deliveries.
they could build a factory in Asia since the pacific trade agreement is in good standing at the u.s senate. they'd be on site to fight Comac and cut their price in half, like, 2 for 1... no ?...(joke)
oil price recovery and interest rates going up again... then what ?