in Business Aviation / Business & Finance

Bombardier halts Learjet 85 and its share prices plunge

Posted 16 January 2015 · Add Comment

Bombardier has halted production on the proposed Learjet flagship, the Lear 85 with several analysts suggesting the “pause” could be permanent.

The Canadian manufacturer is to cut 1,000 jobs in Wichita and Mexico following the decision to “pause” the already delayed programme citing weak demand. The write-off is estimated to be around $1.4bn.
The all-composite Learjet 85 was launched in 2008 with plans for service entry by the end of 2013. 
The company blamed delays initially on problems with certificating the design and manufacturing of the business jet's all-composite structure. The first test aircraft completed a maiden flight in April 2014 , but Bombardier executives declined to provide an updated schedule for entry into service. 
The entire project was placed into a broader review of the company's development priorities instead, with the CSeries and Global 7000 and 8000 business jets given higher preference.
"Given the weakness of the market, we made the difficult decision to pause the Learjet 85 programme at this time," Bombardier president and chief executive Pierre Beaudoin, said. "We will focus our resources on our two other clean-sheet aircraft programmes under development."
However, the company’s new CSeries airliner programme is also delayed and the Montreal company has already axed 3,500 aerospace jobs.
Financial news agency Bloomberg quoted an analyst at National Bank of Canada Financial in Montreal, Cam Doerksen, as saying “It’s really not clear to me what ‘pause’ means. This is a pretty sizable charge, and this suggests to me this may be longer than a typical delay. This appears to be an indefinite pause.” 
Bombardier’s share price dropped by more than 25% on the Toronto exchange.
 

* required field

Post a comment

Other Stories
Advertisement
Latest News

Construction at terminal 3 at Accra-Kotoka International effects certain operators

With construction work on Accra-Kotoka Internationals new Terminal 3 flagship project moving into top gear some operators at the airport have had to change location to facilitate the development.

Sanjeev Gadhia elected to TIACA board

Africa has its first representative on the board of TIACA (The International Air Cargo Association, USA) which is the largest air-cargo association in the world.

Gulfstream Aerospace marks five-year anniversary of G650 Type Certification

Gulfstream Aerospace has recently marked the five-year anniversary of the Gulfstream G650's type certification by the Federal Aviation Administration (FAA) with a look back at the aircraft's esteemed history.

Gogo Business Aviation goes global with High-Speed Satellite Connectivity Service

Gogo Business Aviation is expanding its reach to become a global provider with the announcement of a high throughput satellite service for business aviation.

Air Burkina to be restructured

Air Burkina is to be restructured and its fleet expanded, possibly with turboprops, as part of a government initiative to improve its sustainability, reports ch-aviation.

Air Djibouti eyes 70-seaters

Air Djibouti is preparing for its next stage of growth the chairman of technical partner, reports ch-aviation.

Honeywell ADSBSK0109300917
See us at
GroundHandling BT0303280917Global Aerospace BT28218ACI Africa BT77181017Aviation Africa BT18418AIMA Africa 2017AfBAC Expo BT2017