CEO behind purchase of Bombardier’s Q400 line to keep production in Canada

CEO behind purchase of Bombardier’s Q400 line to keep production in Canada

About 2,500 Bombardier workers will be laid off in Quebec and 500 in Ontario, with the 2,000 other cuts occurring overseas, according to a spokesman, who did not specify the units.

"Collectively, these actions will result in a reduction of approximately 5,000 positions across the organization over the next 12 to 18 months, leading to annualized savings of approximately $250 million at full run rate, which we expect by 2021", it added.

The decision to sell the Q Series line, Bellemare said, was made 'because we believe there is a better owner than us to keep this program going'. The company also announced the sale of its flight training business.

Earlier on Thursday, Bombardier forecast 2019 revenue would grow by 10 percent to $18 billion or more, driven by a pickup in deliveries of Global 7500 jets.

The GMB union, which represents Bombardier workers, said it was demanding answers from the company on behalf of its members.

The Montreal-based firm has also agreed to sell its Q Series turbo-prop airliner program along with the de Havilland trademark to fellow Canadian aircraft manufacturer Viking Air for $300 million.

Bellemare was brought on board in 2015 to shore up the company that was in serious financial trouble with the CSeries program. In February 2017, the federal government said was providing $372.5 million in loans over a four-year horizon to "support thousands of good middle-class jobs". The largest group will move to the private-plane operation "to ensure they have all the necessary capabilities for future business jet development programs", Bombardier said.

Trudeau Apologizes For Canada Turning Away Jewish Refugees On MS St
Louis can not erase the pain suffered by these refugees or those murdered in the Holocaust or their descendants. The ship came within sight of Miami but the US coast guard turned the ship away.

The company also reported third-quarter results on Thursday morning, with quarterly revenue falling 5% year-over-year to $3.64 billion USA and an adjusted profit of US$0.04 per share.

Bombardier in Derby said there were no indications yet that the job cuts would have a significant impact in the city.

The changes come as Bombardier reported a profit of US$149 million or four cents per share in its latest quarter, compared with a loss of US$100 million or four cents per share in the same quarter a year ago.

In the third quarter, adjusted earnings rose to 4 cents a share, topping the 2 cent average of analyst estimates compiled by Bloomberg.

Following the announcement, a Bombardier UK spokesperson said: "We will take the necessary time to evaluate what this means for our Aerostructures and Engineering Services business".

In the third quarter, the commercial aircraft business recorded a loss of US$9 million before interest, taxes and special items.

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