Category: Bombardier Aerospace

Swiss Air-Rescue Rega Completes New Air Ambulance Fleet with Delivery of Third Bombardier Challenger 650 Business Jet

December 18, 2018 – Montréal – Bombardier Business Aircraft

Bombardier Challenger 650 aircraft in medevac configuration.Bombardier Challenger 650 aircraft in medevac configuration. Photo courtesy of Swiss Air-Rescue Rega
  • Long-standing Bombardier customer Rega now has three specially configured, high-performing Challenger 650 aircraft to carry out urgent medical evacuations
  • The Challenger 650 aircraft has the cabin size, flexibility, range and dependability to be the next generation of a proven life-saving platform
  • With the highest wing loading of any aircraft in its class, the Challenger 650 aircraft provides an exceptionally smooth ride that benefits passengers receiving medical care, minimizes pilot fatigue and extends the life of mission equipment

Bombardier has proudly delivered a third Challenger 650aircraft to Swiss Air-Rescue Rega, completing a next-generation fleet of air ambulances tasked with rescuing and repatriating Swiss citizens around the world.

Rega, a long-standing Bombardier customer, took possession of two other Challenger 650 aircraft earlier in 2018. This trio of aircraft replaces Rega’s Challenger 604 fleet, and demonstrates the non-profit foundation’s commitment to the renowned Bombardier Challenger platform.

“It is with the utmost confidence and pride that we deliver a third Challenger 650 aircraft to our partners at Rega,” said David Coleal, President, Bombardier Business Aircraft. “Confidence because we know these aircraft have the reliability that is so important when lives are on the line, and pride to see the Challenger platform configured into the world’s most advanced air ambulance.”

Bombardier has a varied portfolio of business jets that can be readily modified for special missions. In this case the three Challenger 650 aircraft, with their widest-in-class cabins, were specially outfitted with two state-of-the-art intensive care units including two patient beds. Bombardier’s signature smooth ride provides a comfortable environment during any special mission.

Swiss Air-Rescue Rega is a non-profit foundation and one of the world’s pioneers in aeromedical evacuation. In addition to repatriating patients from abroad with three ambulance jets, Rega carries out air-rescue operations in Switzerland with a fleet of 17 helicopters. Rega acquired its first Challenger aircraft from Bombardier in 1982 and has operated Challenger aircraft ever since.

The Challenger 650 aircraft combines the tried-and-true performance upon which Rega has depended for decades with the enhancements and technology to be the life-saving fleet of a new generation. A member of the world’s best-selling large business aircraft platform, the Challenger 650 aircraft is one of the world’s most reliable business jets, with an impressive range of 4,000 nautical miles and a cabin that is quieter than ever.

The Bombardier Vision flight deck aboard the Challenger 650 aircraft reduces pilot workload, and can be equipped with an advanced Head-up Display featuring Enhanced and Synthetic Vision. This leading-edge technology significantly improves situational awareness and operational capability, particularly in remote airfields with limited visibility.

Bombardier delivered all three Challenger 650 aircraft to Rega from Ontario, Canada. The delivery of the third aircraft took place on Dec. 17.


Late, but ready: Bombardier’s $73M luxury jet set for debut

News provided by Financial Post

Two-year delay from ‘unspecified challenges’ is over, and the plan is to sell up to 20 Global 7500s next year

The Bombardier Global 7500 ultra long-range business jet.Courtesy Bombardier Inc.

Bombardier Inc. says it will deliver its first Global 7500 next week as the company’s biggest luxury jet makes its commercial debut two years later than initially planned.

The planemaker is planning an event near Montreal on Dec. 20 to mark the entry into service of its newest aircraft, according to a statement Tuesday. The Global 7500, which can fly nonstop from San Francisco to Singapore, has a list price of about US$73 million. The company didn’t identify the customer.

Bombardier is counting on the Global 7500 to generate at least US$2.5 billion of annual sales by 2020 as the Montreal-based manufacturer trims its commercial-plane operations to focus on business jets and trains. Canada’s largest aerospace company needs the boost from the long-range plane as it grapples with US$9.5 billion in adjusted debt and bond maturities starting in 2020.

In July 2015, Chief Executive Officer Alain Bellemare pushed back the Global 7500’s commercial debut by two years to the second half of 2018. At the time, the company cited unspecified “challenges” with the development of the plane, which was then known as the Global 7000.

David Coleal, who runs the company’s business-aircraft unit, said last week that Bombardier is planning to ship 15 to 20 Global 7500s next year, with most of those deliveries in the second half. Shipments of the jet will likely climb to as many as 40 in 2020 as Bombardier seeks to grab market share from General Dynamics Corp.’s Gulfstream G650.

Bombardier advanced five per cent to $2.20 at 2:30 p.m. in Toronto. The shares have fallen 31 per cent this year through Monday, while a Standard & Poor’s index of Canadian industrial stocks was little changed.

Bloomberg News

Exchange Income Corporation’s Subsidiary, Regional One, Completes Agreement to Lease 10 CRJ200 Aircraft to SkyWest Airlines

Provided by Exchange Income Corporation/CNW

WINNIPEG, Dec. 12, 2018 /CNW/ – Exchange Income Corporation (TSX: EIF) (the “Corporation” or “EIC”), a diversified, acquisition-oriented company focused on opportunities in the aviation, aerospace and manufacturing sectors, is pleased to announce that it is has completed an Agreement to lease ten Bombardier CRJ200 aircraft to SkyWest Airlines (“SkyWest”).

Beginning in August of 2018, Regional One, EIC’s Miami, Florida-based distributor of regional aircraft, engines and aftermarket parts, has acquired nine CRJ200 aircraft, which are now in service with SkyWest. Each of these aircraft is leased to SkyWest for a minimum term of two years, with SkyWest having an option to extend the leases. The purchase of the tenth aircraft by Regional One is expected to close imminently. These ten aircraft represent approximately 5% of SkyWest’s fleet of CRJ200’s.

Hank Gibson, President of Regional One, stated, “We are extremely happy to further strengthen our relationship with SkyWest Airlines, one of the largest regional airlines in North America. SkyWest is a preeminent player in the global regional airline industry, so it is gratifying to be a trusted business partner with them.”

Mike Pyle, EIC’s CEO, added, “This transaction provides another example of Regional One’s expertise and understanding of the regional airline industry and the narrow-body aircraft utilized by these regional airlines. Hank’s experienced management team identified an opportunity to strategically invest in assets and quickly monetize them, achieving an excellent return on investment.”

Bombardier forecasts CRJ profitability in 2020

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10 December 2018 by Graham Warwick, Aviation Week

Bombardier expects its commercial aircraft unit to become profitable in 2020 relying solely on CRJ production after the sale of the Q400 program next year.

Revenue at Bombardier Commercial Aircraft will continue to shrink in 2019, to a forecast $1.4 billion, the manufacturer said Dec. 6 in its 2019 business unit guidance, down from $1.7 billion in earlier guidance.

The losses are expected to halve, however, to around $125 million—including the company’s share of Airbus A220 program (formerly the CSeries) losses—as it cuts jobs to reduce overhead. Deliveries next year are expected to remain flat at 35 CRJs and Q400s.

Bombardier did not give a delivery forecast for 2020 but expects Commercial Aircraft to be profitable, producing only the CRJ regional jet after the transfer of the CSeries program to Airbus this year and the sale of the Q400 program to Canada’s Longview Aviation Capital in 2019.

The company sees demand for 3,000 large regional jets over the next 20 years and “the CRJ900 is one of only two scope-compliant regional jets and perfectly placed for the retirement cycle,” Commercial Aircraft president Fred Cromer said.

Now Bombardier’s third-largest sector after rail transportation and business aircraft, Bombardier Aerostructures & Engineering Services is forecast to reach revenue exceeding $2.25 billion in 2020, up from $2 billion in 2018, according to the guidance.

More significantly, with the A220 program now an outside customer, Bombardier’s share of external work is expected to increase from 40% in 2018 to 60% in the next three to four years, Aerospace & Engineering Services president Danny Di Perna said.

A new engine nacelle for the A320neo—work awarded to Bombardier’s Belfast, Northern Ireland, site by Airbus in 2017—will enter production in 2021 and quickly reach a “steady, high rate,” he said, adding the division is pursuing several opportunities on missionized aircraft and nacelle systems.

Graham Warwick,

Bombardier expects commercial unit will turn profits by 2020

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Bombardier’s commercial aircraft unit will remain in the red next year but turn a profit in 2020, at which time the company expects to have completed the sale of its Dash 8 turboprop programme, Bombardier says in a financial update.

The Montreal-based airframer also anticipates strong growth in the coming years from both its business jet and aerostructures divisions.

The latest update comes one month after Bombardier announced a plan to sell the Dash 8 programme, which includes the Q400 turboprop, to an affiliate of Vancouver-based Viking Air for $300 million.

That move follows Bombardier’s July sale of majority CSeries ownership to Airbus and reflects Bombardier’s intention to focus less on commercial aviation, chief executive Alaine Bellemare said in November.

He added that “strategic options” remain open for the CRJ – Bombardier’s only other commercial aircraft programme – signaling to some analysts that Bombardier will divest that aircraft next.

Bombardier released its latest financial predictions amid such variables.

It anticipates its commercial aircraft unit will deliver about 35 aircraft in 2019 and generate $1.4 billion in revenue. The unit will still lose about $125 million (before taxes, interest payments and special item expenses) next year, it states.

In 2020, however, the unit will turn profitable, according to the update. Bombardier does not, however, provide specific 2020 revenue or profit figures, citing the planned Dash 8 sale and “the exploration strategic options of the CRJ”.

Bombardier has high hopes for its other aerospace divisions.

The company expects its business aircraft unit will deliver 150-155 aircraft in 2019, earn $6.25 billion in revenue and turn a profit margin of 7.5%. The business aircraft division’s profit margin will climb to 8-10% in 2020, Bombardier predicts.

The company expects its aerostructures and engineering unit will generate $2 billion of revenue in 2019 and a 9% profit margin, followed in 2020 by at least $2.25 billion in revenue and a 9-11% profit margin, Bombardier says.

“Three years into our turnaround plan and Bombardier is a much stronger company,” Bellemare says in the financial update. “We are confident in achieving our 2020 objectives and see tremendous opportunities beyond 2020.”

Bombardier executives look to strike note of positivity after turnaround plan missteps

News provided by The Globe and Mail


Alain Bellemare’s five-year turnaround effort at Bombardier Inc. was never going to be an incident-free, perfect line of progress. But the chief executive has found out how low the market’s tolerance is for missteps.

The Canadian plane and train maker has lost half its market capitalization over the past six months as the company got swept up in broader market anxiety, particularly over heavily indebted corporations. The decline accelerated when Bombardier unexpectedly cut its cash flow forecast during its Nov. 8 earnings report, a roughly US$600-million miss the manufacturer blames on delays in train deliveries and expects to start making up in 2019.

Mr. Bellemare and chief financial officer John Di Bert have been trying to limit the damage in private meetings with investors over the past month. At a gathering with analysts and investors Thursday broadcast on the internet, the entire senior management team tried to reverse the negative sentiment. But as suggested by Bombardier’s share price, which ended the day down another 1 per cent, it will take more than words to win back skittish shareholders.

“I think it’ll be tough for [the company] to come back from this for a little while,” Dan Fong of Veritas Investment Research said, adding the market will want to see the next earnings report before concluding that management has liquidity under control. “The stock might bounce around until we see a couple of quarters and see that cash coming back.”

Since becoming CEO, Mr. Bellemare has profoundly reshaped Bombardier. He raised more than US$7-billion from governments and public markets to stave off worries about insolvency, sold off businesses such as the Q-Series turboprop to focus on assets with higher growth potential and cut thousands of jobs as the company exits a heavy product development phase. The aim from the beginning, and reaffirmed Thursday, is to build a multinational that will generate US$750-million in free cash flow and earnings before interest, taxes, depreciation and amortization of US$2.25-billion on revenue of US$20-billion by 2020.

Quarter after quarter since he started in 2015, Mr. Bellemare has largely delivered the financial targets he set for the company. That, in turn, has buoyed market confidence in his team and restored credibility to a company that had lost the trust of investors under previous management.

Last month’s earnings report, however, exposed just how shaky that trust is. In addition to the cash flow miss, Bombardier said it would cut 5,000 jobs, sell two key assets and hunt for more cost savings. Its shares promptly plummeted 24 per cent. They lost another 20 per cent after Quebec’s securities regulator, the Autorité des marchés financiers (AMF), said on Nov. 15 it is probing stock transactions by Bombardier executives made under a newly implemented Automatic Securities Disposition Plan, although the stock has recovered some ground since.

Mr. Bellemare is now trying to convince the market that the cash slip is a minor event and that the larger plan to fix the company remains intact. In a Nov. 28 report, Fitch Ratings downgraded Bombardier’s credit ranking to B- from B, saying the company’s debt levels will decline more slowly than planned because of the cash flow deterioration in 2018 related to working capital requirements.

The CEO began Thursday by renewing his financial goals for 2020 and introducing updated guidance for 2019. The company said it expects to tally a 10 per cent increase in revenue next year, to at least US$18-billion, as it ships more trains and begins deliveries of its new Global 7500 long-range luxury jet. Earnings before interest, taxes, depreciation and amortization is expected to climb 30 per cent year over year, to at least US$1.65-billion. Bombardier predicts it will break even on free cash flow for 2019 including one-time items. The company should end 2018 with about US$3-billion in cash.

“Bombardier is a much stronger company [today],” Mr. Bellemare told analysts gathered in New York later on Thursday. “We are confident in our ability to deliver on our 2020 objectives. And we’re even more excited by the runway that we’re creating and the value that lies beyond 2020.”

Airbus begins building new A220 assembly facilities in Mirabel

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Airbus confirms it has kicked off construction of two new buildings in Mirabel that will enable the company to boost production of A220s.

The move precedes the Airbus’s plan to open an A220 assembly site in the USA, and comes as it begins fulfilling major orders from several large North American airlines.

“To support our ramp up, we need extra space in Mirabel, so we’ve started construction work for two new dome structures which will be ready around spring 2019,” Airbus tells FlightGlobal.

The domes will “create additional capacity for the final assembly process”, says Airbus.

The company declines to provide additional details about new construction at Mirabel, which aviation blog reported in recent days.

Airbus, and Bombardier before it, have sought to boost production of the aircraft previously known as the CSeries, which is assembled in the same Mirabel complex in which Bombardier assembles CRJ regional jets.

Prior to Airbus’ acquisition of the A220 in July, Bombardier executives talked of hiking production to between 90 and 120 aircraft annually by 2020.

But, actual production rates increased at a glacial pace in recent years.

Bombardier delivered just 17 of the aircraft in 2017. So far this year, Bombardier and Airbus have handed over just 25 A220s, according to Flight Fleets Analyzer.

In addition to the new facility planned in Mirabel, production should benefit from Airbus’ plans to open an A220 assembly site in Mobile, Alabama, where the European airframer also assembles A320-family aircraft.

Airbus expects to break ground on the A220 Mobile site in early 2019, it confirms.

The moves come as Airbus prepares to begin handing over A220s to major customers Air Canada and JetBlue Airways, following the first delivery to Delta Air Lines in October.

Atlanta-based Delta has orders for 75 of the aircraft, and had initially expected to receive them all by the end of 2020.

Air Canada has orders for 45 A220s, with deliveries pegged for between 2019 and 2022, and JetBlue has orders for 60 A220-300s, with deliveries to begin in 2020.

Bombardier to pitch for future Airbus composite wing work

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Bombardier will pitch to play a key role in a future Airbus composite wing programme, believing its expertise in designing and building the innovative carbonfibre wing for the A220 gives it the edge over the European manufacturer’s own factories.

“We have been very clear – this is an opportunity we need to grab,” says Michael Ryan, chief operating officer at Bombardier Aerostructures & Engineering Services (BAES), and head of the company’s Belfast plant, which builds the A220 wing. The Northern Ireland facility has been pioneering composite technologies since it was Shorts Aerospace in the 1980s.

Airbus took control of the troubled CSeries programme in July, renaming it the A220, and effectively allowing Bombardier to exit from a cripplingly loss-making commitment. However, the Canadian company retained the intellectual property rights on the wing, which BAES in Belfast continues to build for Airbus as a supplier.

The Belfast operation, together with Airbus’s own wing operations at Broughton and Filton, remain crucial to government efforts to keep wing production in the UK following Brexit. France, Germany, and Spain have long harboured ambitions to snatch responsibility for wing design once Airbus begins serious work on its next generation of aircraft, given the importance of the technology for industry.

Noting that Bombardier is the first outside company to build wings for an Airbus airliner, Ryan says: “If an opportunity comes on a new wing, Airbus would have to decide: ‘Do we do it in-house or go to a third-party provider?’ We would want to be a part of that, making a pitch to be involved in a new wing.”

Ryan was speaking to journalists earlier today at a Bombardier media luncheon, after returning from a visit to Toulouse.

Bombardier in Belfast was a supplier to Airbus long before the CSeries acquisition, building, among other items, nacelles for International Aero Engines V2500-powered A320 family aircraft, as well as Pratt & Whitney PW1100G-powered A320neos.

Airbus has engaged with a number of Northern Irish aerospace companies on its “Wing of the Future” research project, based in Filton.

Bombardier to cut 490 jobs in Belfast

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21 November 2018

Bombardier plans to cut 490 jobs at its UK aerostructures operation in Belfast as part of wider efforts to restructure the Canadian manufacturer’s aerospace activities.

The airframer says that it “reviewed manpower requirements in Belfast” and decided that it needs to “continue to cut costs and improve the efficiency of our operations to help ensure our long-term competitiveness”.

Just under 4,000 staff are employed at Bombardier’s Belfast facilities, which produce CRJ centre fuselages, wing components for the Q400 turboprop, and fuselage sections and other components for the manufacturer’s business jet programmes.

The Belfast site also manufactures wings for the A220, previously known as the CSeries, which was transferred to Airbus control in July.

Earlier this month, Bombardier disclosed that it was disposing of “non-core assets” – including selling the Q400/Dash 8 programme and its business aircraft training unit – and embarking on a widespread restructuring, in which it would shed 5,000 jobs across the whole company over the next 18 months.

Some 3,000 of those redundancies are to be made in Canada and also include posts in the rail business.

Bombardier acknowledges that the redundancies in Belfast will have an “impact… on our workforce and their families”.

“We continue to explore opportunities to help mitigate the number of compulsory redundancies,” the manufacturer says.

UK union Unite says that the job cuts – to be made in February and March 2019 – are a “heavy blow for the local economy” and will cover “all skill-sets and occupations” among full-time staff.

Bombardier’s announcement does not cover potential job losses among “agency workers/sub-contractors and the possible future outsourcing of so-called non-core activities”, Unite asserts.

The union’s regional secretary for Ireland Jackie Pollock states: “Unite has feared for some time that Bombardier might be bringing forward large-scale redundancies, but this news exceeds our worse fears.”

Bombardier’s UK aerospace activities are mainly concentrated in Belfast, but around 170 staff members employed at a business jet maintenance site at London Biggin Hill airport.

Bombardier is selling off two businesses and cutting 5,000 jobs

News provided by Financial Post

Reuters Nivedita Bhattacharjee and Allison Lampert November 8, 2018

Shares plunge as investors react to plan to focus on transportation and business jet units

Bombardier Inc. says it’s cutting about 5,000 jobs across the organization over the next 12 to 18 months as part of a new restructuring plan.Canadian Press/Ryan Remiorz