Page 32 - AAA NOVEMBER - DECEMBER 2018 Online Magazine

CHANGING

COURSE

Bombardier’s focus will
now be on business jets

Arun Sivasankaran

hat a difference a year makes! to come, the company had, in May this year, announced that it
Bombardier started 2018 as the was selling its Q400 factory in Toronto for $635 million.
fourth-biggest maker of com-
Wmercial aircraft in the world but Shrinking for Success
ends the year having shrunk considerably, The company is currently implementing a five-year restructuring
with questions being raised about its future programme that is designed to cut losses and grow revenue. The
as an aerospace entity. The Canadian plane decisions are part of the “next round of actions necessary to
and train manufacturer’s announcement in unleash the full potential of the Bombardier portfolio,” according
November, that it was selling its Q400 tur- to Chief Executive Officer Alain Bellemare, who believes the
boprop passenger plane line to Canadian company has made “solid progress” in executing its turnaround
airframe maker Viking Air for C$300 million, plan. Although the decisions substantially reduce Bombardier’s
leaves it with just one commercial aircraft footprint in the aviation landscape, they seem to be having the
programme – the Bombardier CRJ (Canadair desired effect. Pre-Tax profits in the third-quarter from July to
Regional Jet) Series. September doubled to US$267 million compared with the same
period last year. The company expects 2019 revenue to increase
Also changing hands is the business jet by 10 percent to at least US$18 billion.
training program for C$645 million, to CAE,
another Canadian company. The two trans- Uncertain Future
actions are expected to close in the second The stated focus, at least for now, is on making the CRJ pro-
half of 2019. Although the sale of the Q400 gramme work. “As we continue to actively participate in the
line did catch much of the industry by sur- regional aircraft market with our established, scope compliant
prise, it wasn’t entirely unexpected. The aircraft, our focus is on reducing cost and increasing volumes
company, which had plunged into financial while optimizing the aftermarket for the approximately 1,500
trouble because the C Series programme CRJ’s in service around the world today,” the company said in
overshot its budget by a mile, had lost money a press statement. “As we look to return the CRJ to profitability,
on the turboprop passenger plane line as well we will also explore strategic options for the program.” With
in recent years. In what was a sign of things more people traveling by air than ever before, especially in the

32 | November/December 2018 www.GBP.com.sg/AAA