Bombardier Challenger 350 Jet Most Delivered in Category for Seventh Consecutive Year, Company Also Ends 2020 With Highest Total Market Share in Fourth Quarter

MONTREAL, Feb. 26, 2021 (GLOBE NEWSWIRE) — Bombardier announced today that its best-selling Challenger 350 aircraft was the most-delivered medium category business jet in 2020, making it the category leader for a seventh consecutive year. As detailed in the General Aviation Manufacturers Association’s (GAMA) annual shipment and billings report released February 24, the company also outpaced competitors by delivering 44 aircraft in the fourth quarter of 2020. This accomplishment was driven by a record 16 Global 7500 business jet deliveries in that timeframe.

Bombardier’s comprehensive family of business jets firmly positions it to respond to the growing interest in private aviation and the enhanced safety they provide during these exceptional times.

As more people seek to avoid crowds and interest in fractional and air charter increases, the best-selling Challenger 350 aircraft is there to take passengers where they need to be, and it continues to surpass expectations while doing so.

In 2020, Bombardier announced a firm order for 10 Challenger 350 aircraft in a transaction valued at $267 million U.S. and also marked the 350th delivery of the Challenger 350 business jet, a milestone reached after only seven years in service. The best-selling Challenger 350 aircraft now features an expanded selection of sophisticated and contemporary interior design schemes, high-speed Viasat Ka-band connectivity and a refreshed cabin management system, inspired by the industry’s flagship Global 7500 business jet.

In addition to the Challenger 350 aircraft, Bombardier’s Challenger 650 business jet is a masterful expression of high-end craftsmanship and functionality. With its ideal combination of range, speed and field performance capabilities, the Challenger 650 aircraft is perfectly suited for both private and specialized missions, including medevac. The Challenger 650 aircraft is in service with many governments worldwide for various special missions.

About Bombardier
Bombardier is a global leader in aviation, creating innovative and game-changing planes. Our products and services provide world-class experiences that set new standards in passenger comfort, energy efficiency, reliability and safety.

Headquartered in Montréal, Canada, Bombardier is present in more than 12 countries including its production/engineering sites and its customer support network. The Corporation supports a worldwide fleet of approximately 4,900 aircraft in service with a wide variety of multinational corporations, charter and fractional ownership providers, governments and private individuals.

Bombardier Aviation Takes the Show to Customers with Innovative Virtual Event

  • Four-day event offers guided online visits insider Bombardier’s
  • industry-leading Learjet, Challenger and Global business jets
  • Bombardier also debuts Virtual Showroom for convenient, interactive access to aircraft

MONTREAL, Oct. 05, 2020 (GLOBE NEWSWIRE) — Bombardier is pleased to be hosting its first virtual customer event, beginning this morning and continuing through Thursday, October 8. Over the next four days, Bombardier’s knowledgeable experts will guide customers through personalized visits of the industry’s best business jets.

“There’s a strong interest in Bombardier aircraft as more and more people explore their business travel options,” said Peter Likoray, Senior Vice President, Sales and Marketing, New Aircraft, Bombardier Business Aircraft. “We created this virtual event in order to connect with customers, and to offer convenient and personalized access to our stunning aircraft and our expert team.”

Bombardier is hosting individual online visits, by appointment, inside the Learjet 75 Liberty aircraft, the Challenger 350 aircraft, the Global 6500 aircraft and the industry flagship Global 7500 aircraft. Members of the public are also invited to visit a different aircraft on each day of the show – details on how to participate will be shared on Bombardier’s InstagramFacebookTwitter, and LinkedIn accounts.

This initiative is but one example of Bombardier finding new ways to connect with customers at a time when the advantages of business travel are clearer than ever. During this four-day online event, Bombardier is debuting its all-new Virtual Showroom, allowing users to interact with its industry-leading fleet of business jets, from light to mid-size to large-cabin aircraft. The Virtual Showroom invites visitors on a self-guided tour of Bombardier’s fleet, where they can choose which aircraft to visit and explore their unparalleled cabins.

This digital innovation complements other interactive tools on Bombardier’s Business Aircraft website, including the recently launched Needs Assessment Tool, which matches users with their ideal aircraft, and the popular Aircraft Configurator, where visitors can design their own cabin interiors.

As travellers seek safe and convenient ways to fly, Bombardier’s broad portfolio of business jets offers the ultimate peace of mind. The Learjet, Challenger and Global business jet platforms are designed around passenger wellness and renowned for their range, spaciousness, air quality and smooth ride.

Once customers take delivery of their aircraft, Bombardier’s award-winning Customer Experience team is there to support them with a 24/7 response centre, a worldwide network of service centres, and mobile crews on standby to deploy parts and expertise.

Bombardier Delivers First Global 7500 Aircraft Equipped with Dual Head-up Display (HUD)

  • One of many pilot-friendly features aboard the Global 7500 aircraft, dual HUD capability allows co-pilot to benefit from Enhanced and Synthetic vision for increased situational awareness
  • Flagship Global 7500 aircraft redefines what is possible on a business jet with numerous innovations and the industry’s most advanced flight deck
  • The Global 7500 aircraft boasts the longest range and the smoothest ride, and has demonstrated outstanding performance during its first 18 months in service

MONTREAL, Aug. 24, 2020 (GLOBE NEWSWIRE) — Bombardier is pleased to announce it has delivered the first Global 7500 aircraft equipped with a dual head-up display (HUD). This first-in-class capability provides additional safety and redundancy to what is already the most advanced and pilot-friendly cockpit in business aviation.

“The delivery of the first Global 7500 aircraft with a dual HUD showcases our outstanding commitment to safety,” said Michel Ouellette, Senior Vice President, Program Management and Engineering, Bombardier Aviation. “This cockpit is designed to put technology and automation at the service of the crew, rather than creating technology that the crew has to manage.”

The sophisticated HUD on the Global 7500 aircraft is equipped with Enhanced and Synthetic vision systems for optimal situational awareness. The second HUD builds on these advantages, with benefits including increased contribution from the co-pilot during HUD-assisted operations, easier switching between pilot flying and pilot monitoring as well as valuable redundancy during low-visibility approaches.

The Global 7500 aircraft is equipped with the latest Bombardier Vision flight deck, featuring unprecedented automation that remains firmly at the service of the crew. Examples include fully automatic fuel transfer and cabin pressurization management, and start-up sequences that are greatly simplified compared to those of other business jets. The unique, automated, self-diagnostic, electronic checklists ensure accuracy and relieve unnecessary manual tasks while providing full visibility to the crew. The Global 7500 aircraft’s proven fly-by-wire system is engineered to maximize safety through a design that combines pilot authority and the industry’s most complete flight envelope protection.

Complementing the safety attributes of the flight deck, the Global 7500 aircraft boasts outstanding low-speed handling characteristics on takeoff and landing, as well as the short-field performance of a light jet.

Bombardier Global 7500 Jet Receives Business Aviation’s First-ever Environmental Product Declaration

From Bombardier Business Aircraft

  • Third-party audited Global 7500 Environmental Product Declaration (EPD) published by the International EPD® System provides detailed information about the aircraft’s life cycle environmental footprint
  • The multiple award-winning Global 7500 aircraft is the largest and longest-range business jet in the industry, offering Bombardier’s signature smooth ride and an unrivalled cabin experience

MONTREAL, June 30, 2020 (GLOBE NEWSWIRE) — Bombardier Aviation and the International EPD® System, an environmental declaration program based in Sweden, announced today a first in business aviation with the publication of the Environmental Product Declaration (EPD) for Bombardier’s Global 7500 jet.

The Global 7500 aircraft EPD is third-party verified to the highest international ISO standards1. It discloses fully transparent environmental information about the product’s life cycle, such as CO2 emissions, noise, water consumption and other key environmental impact indicators. Bombardier has committed to communicating the environmental performance of all new aircraft programs through EPDs.

The publication of the Global 7500 aircraft EPD is an important milestone in the advancement of Bombardier Aviation’s overarching environmental sustainability strategy, which encompasses increasing the adoption of Sustainable Alternative Fuels (SAF), reducing CO2 footprint, enhancing aircraft recyclability, and sustainably sourcing, all as a part of its Eco-Design approach and in support of industry-wide carbon reduction goals.

“We are proud to collaborate with Bombardier in its effort to provide full transparency about the environmental performance of its Global 7500 jet from a life cycle perspective. With the publication of the first business jet EPD in our system, Bombardier is striving to provide customers and stakeholders with the full environmental picture. The EPD is third-party verified and complies with the globally accepted ISO standards – ISO 14025 and related – for type III environmental declarations,” said Sebastiaan Stiller, Director Business, The International EPD® System.

The Bombardier Eco-Design team applied its product innovation life cycle process throughout the development of the Global 7500 aircraft to minimize the jet’s impact on the environment, from the design and manufacture of the aircraft to end-of-life. The Global 7500 aircraft is the first business jet conceived with this approach. The Global 7500 aircraft EPD is also the outcome of years of collaboration with Bombardier’s supply chain, a rigorous analysis from the program’s outset and robust certification process completed throughout 2019.

“The EPD for the Global 7500 business jet embodies Bombardier’s commitment both to the environment and to the sustainable advancement of the aviation industry,” said David Coleal, President, Bombardier Aviation. “We are thrilled to offer a comprehensive environmental footprint and performance overview of the Global 7500 aircraft throughout its life cycle. By making this information available to our stakeholders, including operators, this EPD supports the business aviation industry’s broader approach to fight climate change through clear, transparent goals and associated multipronged plans that encompass technology and sustainable fuels.”

Bombardier designed the state-of-the-art Global 7500 business jet using best-in-class technologies. The Global 7500 aircraft is powered by the all-new GE Passport engine, incorporating advanced technologies and materials to improve durability, deliver a lower noise output and improved fuel consumption. Additionally, its new high-speed transonic wing cuts down on drag, reduces fuel burn, and lowers emissions, offering a smooth ride, as well as excellent short-field and high-speed performance.

Since its entry-into-service, the Global 7500 business jet has proven itself to be the highest-performing aircraft in the industry. With unmatched speed and range capabilities, the Global 7500 aircraft continues to blaze the trail in this new market segment, setting the bar for unprecedented excellence and performance in the world of business aviation. Winner of the 2019 Aviation Week Grand Laureate Award, and recipient of the 2019 Robb Report Best of the Best Business Jet of the Year Award and the 2018 Red Dot Award for Product Design, the Global 7500 aircraft offers Bombardier’s signature smooth ride and a spaciousness that is unique among business jets, setting the benchmark for the most exceptional cabin interior.

About the International EPD® System
The International EPD® System is a program for voluntary and transparent communication of the life cycle environmental impact of goods and services. With more than 15 years of experience, and a library consisting of certified environmental product declarations from 31 countries, EPD serves as a credible choice for B2B and B2C communication based on ISO 14025 and other international standards. The program operator of the International EPD® System is EPD International AB, registered in Sweden.

Flight test: Bombardier Global 7500 offers world travellers creature comforts

News from Flight Global – link to story

20 May 2020By Mike Gerzanics

With its Global 7500, Bombardier is looking to redefine long-range large-cabin business aviation. FlightGlobal test pilot Mike Gerzanics went to San Jose, California to try out the new flagship

Bombardier’s Global line of ultra-long-range large-cabin business jets was launched in the 1990s with the Global Express. At the time of its certification in 1998, this had the largest cabin of any purpose-built business jet, a distinction it held until Gulfstream delivered its first G650 in 2012.https://www.youtube.com/embed/66p7B3Dcb2k?enablejsapi=1&origin=https%3A%2F%2Fwww.flightglobal.com

Bombardier answered with the Global 7000, a clean-sheet design that had a cabin 3.41m (11ft) longer than the Global 6000’s, shooting for a 2016 certification date. However, this schedule was pushed back to 2018 when technological advances allowed the Canadian airframer to field an even more capable aircraft. The revised design promised a range in excess of 7,500nm (13,900km), and was renamed the Global 7500.

Continue reading

Bombardier eyes resumption of Toronto plant assembling corporate jets

News from The Globe and Mail – link to story and updates

ALLISON LAMPERT, MONTREAL, REUTERS, APRIL 9, 2020

A Bombardier logo is shown at a Bombardier assembly plant in Mirabel, Que., Friday, October 26, 2018.GRAHAM HUGHES/THE CANADIAN PRESS

Bombardier is taking early steps to revive assembly of its most lucrative business jets after production was halted for weeks because of the coronavirus outbreak, even as the pandemic risks sapping demand for corporate aircraft.

Bombardier will bring some employees back to its Toronto plant on Monday for pre-flight activities to support the resumption of operations there on April 27, company spokeswoman Anna Cristofaro said by e-mail.

“Bombardier continues to take the necessary steps and precautions to safeguard the health of all its employees, and we remain in close contact with public health officials,” Cristofaro said.

Bombardier’s Toronto plant assembles the company’s flagship large-cabin business jets, such as its Global 7500, which is then completed at a company facility in Montreal.

It is unclear when Bombardier would be able to restart its Montreal facilities as Quebec extended the closure of non-essential businesses in the province until May 4.

Cristofaro said the company is evaluating the impact of the Quebec government’s announcement.

Bombardier, which is set to become a “pure play” jet maker when it completes the sale of its rail division next year to France’s Alstom SA, has a $14.4 billion backlog.

Gulfstream Aerospace, a division of General Dynamics and Embraer SA are still producing business jets in the United States. Textron Aviation in March announced it would furlough 7,000 workers.

Business jet deliveries are expected to fall this year as the pandemic disrupts global travel. The world economy is forecast to decline sharply in 2020, the head of the International Monetary Fund said on Thursday.

Syed Zaidi, aviation analyst for Ascend by Cirium is forecasting a 25%-50% decline in all new business jet deliveries for 2020, depending on the duration of the pandemic. Zaidi was previously forecasting between 795 to 800 deliveries of new business jets in 2020, compared with 799 deliveries in 2019.

After an initial bump in business jet charter flights as people were repatriated “flight activity has essentially cratered in the U.S.,” said aviation analyst Rolland Vincent.

Business jet charter flying was off 25-30% during the first 26 days of March 2020, compared with the same period a year earlier, he said.

Bombardier pulled its 2020 outlook in March and stopped work at most of its Canadian operations until April 26 following government orders to help slow the spread of the coronavirus.

Bombardier Announces Full-Year Financial Results

Provided by Bombardier Inc/CNW

  • Exit of commercial aerospace completed with sale of remaining interest in A220 partnership for ~$600M cash proceeds and the elimination of future investments of ~ $700M(1)
  • Pro Forma(1) cash on-hand of more than $4B, including all previously announced transactions, enhancing financial position
  • Company continuing to actively pursue strategic options to accelerate deleveraging
  • Fourth quarter, and full-year results in line with preliminary results previously announced
  • 2020 consolidated outlook: double-digit organic revenue growth(3) to more than $15B(1)
  • 2020 consolidated adjusted EBITDA margin(2) expected at ~ 7.0%, adjusted EBIT margin(2) expected at ~3.5%(1)
  • 2020 consolidated free cash flow(2) expected to be positive, excluding Residual Value Guarantee (RVG) payments(1)

MONTRÉAL, Feb. 13, 2020 (GLOBE NEWSWIRE) — Bombardier (TSX: BBD.B) today reported its fourth quarter and full year 2019 results, in line with previously announced preliminary results. The company also confirmed it is still actively pursuing options to accelerate deleveraging, strengthen its balance sheet and enhance shareholder value.

Sale of A220 Partnership Interest

Bombardier has entered into an agreement with Airbus SE and the Government of Quebec, under which Bombardier transferred its shares in the Airbus Canada Limited Partnership (ACLP) to Airbus and the Government of Quebec, improving Bombardier’s cash position. This includes cash proceeds of ~$600 million from Airbus, of which $531 million was paid upon closing with the balance to be paid over 2020-21, and the elimination of all future capital requirements for the A220 program, estimated at ~ $700 million.(1)

Bombardier will also transfer aerostructures activities and employees supporting the A220 and A330 in St-Laurent, Québec to Airbus subsidiary Stelia Aerospace. Finally, the agreement provides for the cancelation of 100,000,000 Bombardier warrants owned by Airbus.

Bombardier’s decision to sell its stake in the A220 partnership completes its exit from commercial aerospace, a significant undertaking. In 2016, Bombardier’s commercial aerospace business lost approximately $400 million and was consuming approximately $1 billion in cash. Addressing this challenging portfolio was a fundamental step in the Company’s turnaround plan.

“We are incredibly proud of the many achievements and tremendous impact Bombardier had on the commercial aviation industry,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. “We are equally proud of the responsible way in which we have exited commercial aerospace, preserving jobs and reinforcing the aerospace cluster in Québec and Canada. And, we are confident that the A220 program will enjoy a long and successful run under Airbus’ and Québec’s stewardship.”

Acceleration of Deleveraging Phase of Turnaround

The sale of our interest in the ACLP, combined with the previously announced aerospace divestitures, will generate more than $1.6 billion in cash proceeds and eliminate close to $2 billion in liabilities and future commitments.  Liquidity remains strong, with Pro Forma cash-on-hand of more than $4 billion and $5.5 billion in liquidity, providing the necessary flexibility to complete the turnaround. Both the CRJ program sale to Mitsubishi Heavy Industries, Inc. and sale of the aerostructures business to Spirit AeroSystems, Holding Inc. are expected to close in the first half of 2020.(1)

As previously announced, the Company is actively pursuing options that would allow it to accelerate deleveraging, paydown debt and position the business for long-term success with greater operating and financial flexibility. This process remains ongoing, however the company does not intent to provide any further updates at this time.

Overview Financial Performance

Bombardier’s consolidated revenues for the year were $15.8 billion, highlighted by an 8.5% growth in business aircraft activities. The growth in Aviation revenues were offset by the lower contribution from commercial aircraft businesses following their divestitures. Revenues at Transportation also decreased, mainly due to contract estimate revisions.

Consolidated adjusted EBITDA and adjusted EBIT for the year were $896 million and $470 million, respectively, reflecting (i) improvements at Aviation as it exits underperforming commercial programs and ramps-up production on the Global 7500 aircraft; and (ii) additional charges and investments at Transportation to complete challenging projects. Reported EBIT loss for the year of $498 million includes a $1.6B impairment charge related to the ACLP investment.

Fourth quarter cash generation reached $1.0 billion, reducing free cash flow usage to $1.2 billion for the year.  Higher than anticipated cash usage was driven by additional investments made to address challenging rail projects, as well as, the deferral of deliveries, mainly at Transportation. Cash usage from operating activities amounted to $680 million for the full year.

2020 Outlook

Revenues from our sustaining business aircraft and Transportation activities in 2020 are expected to grow organically by double-digit percentage over the $13.7 billion revenues recorded from these businesses in 2019(1).  This strong growth is driven mainly from the acceleration of Global 7500 deliveries contributing to a total of 160 aircraft or more for the year at Aviation. The consolidated revenue growth is also supported by the ongoing production ramp-up of Transportation, driven by the solid orders from the past few years.

Adjusted EBITDA and adjusted EBIT are expected to increase to approximately 7.0% and 3.5% respectively, mainly from the acceleration of Global 7500 deliveries at Aviation and gradual margin normalization at Transportation. The adjusted EBIT margin expansion includes a higher amortization expense as Global 7500 deliveries increase. The full year outlook for earnings reflects the partial year contribution from ongoing divestitures of the CRJ program and Aerostructures businesses.(1)

Free cash flow is expected to be positive in 2020, excluding Credit and RVG payments. These residual liabilities related to the exit of commercial aircraft are estimated to be approximately $200 million for the year and are expected to be paid from the CRJ transaction proceeds.(1)

Aviation

Stronger Financial Performance as Aviation Reshapes its Portfolio

  • Revenues for Aviation totalled $7.5 billion for 2019. This reflects an 8.5% revenue growth from business aircraft activities and continued double-digit organic growth from aftermarket.
  • The segment achieved 175 aircraft deliveries during the year, comprised of 54 Global, 76 Challenger, 12 Learjet, as well as 33 commercial aircraft.
    °  The fourth quarter’s activity level was high, with deliveries reaching 52 business aircraft as Global 7500 deliveries accelerated.
  • Adjusted EBITDA margin was 10.8% for the year, up 200 bps driven by the exit of the Q400 and C Series programs. This profitability was nonetheless diluted in 2019 by CRJ activities, accounting for $1.2 billion in revenues for the year.
  • The adjusted EBIT margin of 7.1% is up 70 bps year-over-year, reflecting the early production ramp up and higher amortization associated with Global 7500 deliveries, as well as the dilution from commercial aircraft activities.
  • Business aircraft backlog increased slightly for the second consecutive year, reaching $14.4 billion at year end, while the CRJ backlog declined as production winds down.

Concentrating on Business Aircraft while Addressing Underperforming Programs

  • In February 2019, the Corporation acquired the Global 7500 aircraft wing program operations and assets from Triumph Group Inc. This transaction enabled the company to leverage its extensive technical expertise to support the ramp-up of the Global 7500 aircraft and secure its long-term success.
  • In March 2019, we concluded the sale of Business Aircraft’s flight and technical training activities to CAE Inc. for net proceeds of $532 million.
  • In May 2019, we completed the previously announced sale of the Q Series program assets, including aftermarket operations and assets, to De Havilland Aircraft of Canada for net proceeds of $285 million.
  • In June 2019, the Corporation entered into a definitive agreement with Mitsubishi Heavy Industries, Ltd (MHI) for the sale of its regional jet program for a cash consideration of $550 million payable upon closing, and the assumption by MHI of approximately $200 million of liabilities related to credit and residual value guarantees and lease subsidies. The transaction is currently expected to close by mid-year 2020 and remains subject to regulatory approvals and customary closing conditions.
  • In October 2019, the Corporation and Spirit AeroSystems Holding, Inc. (Spirit) announced that they have entered into a definitive agreement, whereby Spirit will acquire Bombardier’s aerostructures activities and aftermarket services operations in Belfast, U.K. and Casablanca, Morocco, and its aerostructures maintenance, repair and overhaul facility in Dallas, U.S. for a cash consideration of $500 million and the assumption of approximately $700 million of liabilities, including government refundable advances and pension obligations. The transaction is expected to close by mid-year 2020 and remains subject to regulatory approvals and customary closing conditions.

Positioned for Growth through certification and ramp up of New Programs and Service Network Expansion

  • Reaching full-scale production of the class-defining Global 7500 aircraft. With increased deliveries, the Global 7500 aircraft is expected to contribute significantly to revenues growth in 2020. As the aircraft progresses on the learning curve, it will also contribute to margin expansion.
  • Certified the new Global 5500 and Global 6500 aircraft, followed by the entry into service of the Global 6500 aircraft in 2019, offering customers the perfect combination of range, speed, field performance and smooth ride.
  • Continued and consistent growth of the aftermarket business, with further expansion of the service network in Singapore planned for 2020.

Link to full press release

Bombardier Strengthens Customer Support Network in Europe with London Biggin Hill Service Centre Expansion

Provided by Bombardier Business Aircraft/Globe Newswire

  • Expansion at Bombardier’s London Biggin Hill service centre will double the facility’s footprint to nearly 250,000 square feet
  • Increased capacity will benefit more operators of Bombardier business aircraft, including the new Global 7500 jet

LONDON BIGGIN HILL AIRPORT, Feb. 05, 2020 (GLOBE NEWSWIRE) — Bombardier proudly announced today the expansion of its London Biggin Hill service centre with the construction of a new and larger facility nearing 250,000 square feet (approximately 23,225 square metres) to replace its existing hangars. Scheduled to be operational by mid-2022, the new service centre will provide customers in the region with extended maintenance support and reinforce Bombardier’s customer service experience in Europe.

Expansion of Bombardier’s London Biggin Hill service centre

The facility will provide the space and flexibility to offer a full range of maintenance and refurbishment services on Bombardier’s vast portfolio of products, and has the capacity to accommodate as many as 14 Global 7500 aircraft at the same time. The expansion will introduce sought-after capabilities and state-of-the-art installations, such as component painting and interior refurbishment capabilities, component repair and overhaul workshops and training rooms. The site will also ensure a quick response to its customers’ repair needs with the integration of a brand-new parts depot. Over the next several years, this significant expansion will bring the facility’s workforce to more than 250 employees and beyond to meet expanding demand.

“With the expansion of the London Biggin Hill service centre, Bombardier is taking another step in showing its unwavering commitment to providing customers with industry-leading services on a global scale, and the OEM expertise they rightfully deserve,” said Jean-Christophe Gallagher, Vice President and General Manager, Customer Experience, Bombardier Aviation. “Europe continues to be a strong market for business aviation, and we’re glad to show our commitment to our customers with this important investment in the region.”

Bombardier’s London Biggin Hill service centre was inaugurated in 2017 and offers tip-to-tail heavy maintenance capabilities on Learjet, Challenger and Global families of aircraft. The site is fully equipped to perform scheduled and unscheduled maintenance, modifications and avionics installations, and paint repair services. In 2019, the service centre added enhanced interior repair and refurbishment activities.

“The expansion of Bombardier’s service centre and the enhancement of its service and maintenance capabilities is a testament to the dynamism and attractiveness of the Biggin Hill Airport,” said Robert Walters, Commercial Director of London Biggin Hill Airport. “Bombardier has been a tremendous partner and, with this announcement, demonstrates its strong commitment to the continued growth of our world-class aviation hub.”

This expansion comes on the heels of numerous announcements in Bombardier’s vast support network, including the announcements of a new service centre at Miami-Opa Locka Executive Airport and of an expanded Singapore service centre, the recent addition of two U.S. line maintenance stations in Teterboro and Van Nuys, and the expansion of the Mobile Response Team (MRT) with a new Challenger 300 aircraft based in Munich, Germany.

Centennial College Dedicates Centre for Aerospace and Aviation to Bombardier, Celebrates Donation of a Global 7500 Flight Test Vehicle

Provided by Centennial College/CNW

Centennial College (CNW Group/Centennial College)
Centennial College (CNW Group/Centennial College)
Bombardier Inc. (CNW Group/Centennial College)
Bombardier Inc. (CNW Group/Centennial College)
  • Centennial College renames their centre for aerospace to The Bombardier Centre for Aerospace and Aviation
  • Following donation of a CRJ200 aircraft in February 2019, Bombardier donates “The Architect” Global 7500 flight test vehicle
  • Announcements reinforce Bombardier’s partnership with Centennial, further to R&D investment commitments

TORONTO, Jan. 28, 2020 /CNW/ – Following a decade of close collaboration in support of aerospace education, skills training and research and development, Centennial College is pleased to announce today that it is renaming its Centre for Aerospace and Aviation at Downsview Park to “The Bombardier Centre for Aerospace and Aviation” and is receiving a Bombardier Global 7500 flight test vehicle for training purposes.

“As the global demand for aerospace technicians and technologists continues to grow, the strategic advantage of Bombardier and Centennial’s relationship is only amplified,” says Dr. Craig Stephenson, President and CEO, Centennial College. “The commitment of both partners not only aims to support the increasing labour demands of the sector, but also bolsters Ontario’s and Canada’s leadership position in a competitive global sector.”

Known as “The Architect”, the Bombardier Global 750business jet (serial number 70004) was the fourth Flight Test Vehicle (FTV4) of the program and was used for interior validation testing. Since its maiden flight on September 28, 2017, the aircraft accumulated approximately 731 flight hours.

Centennial students will receive hands-on experience working on the prototype of the world’s largest and longest-range purpose-built business jet with the industry’s most advanced avionics and airframe features, including high-performance wings. The aircraft will have a permanent spot outside Centennial’s new hangar at its Downsview Park facility, which opened in January 2019.

“Bombardier is proud to continue supporting Centennial College in their mission to prepare the next generation of aerospace professionals. With this Global 7500 aircraft donation, students will receive incomparable hands-on training using the industry’s latest advanced technology,” said Alain Bellemare, President and Chief Executive Officer, Bombardier.

Global 7500 aircraft are assembled at Bombardier’s facility in Toronto, using innovative and cutting-edge technology. The development of the aircraft has positively influenced the Ontario aerospace sector in the past decade, expanding the range of experience and capabilities of engineers, technicians and technologists, as well as mobilizing suppliers.

In February 2019, Bombardier donated a CRJ200 to Centennial College for training purposes and is also providing the college with $150,000 for the completion of its Landing Gear Research project, while extending its existing educational program. The program is expected to train a minimum of 50 individuals for each of the next two years at Centennial’s facility, which serves as the anchor for Toronto’s new aerospace hub, the Downsview Aerospace Innovation and Research (DAIR) Hub.

The Global 7500 FTV4 donation, and the educational value it provides, is possible due to the generosity of suppliers who donated their respective systems: Collins Aerospace for its Avionic suite; Parker Hannifin Corp. for its fly-by wire system; Safran Power Units San Diego for the Auxiliary Power Unit; Woodward Inc. for the rudder pedal; GE Aviation Systems for the Aircraft Health Monitoring Unit; and GE Passport.

Bombardier Provides Preliminary Fourth Quarter and Full Year 2019 Financial Results and Updates on Accelerating Deleveraging Phase of Turnaround Plan

Provided by Bombardier Inc/Globe Newswire

  • Financial results expected to be below guidance, driven largely by actions at Transportation to resolve challenging projects
  • Aviation financial results largely on track
  • Company actively pursuing strategic options to accelerate deleveraging
  • Bombardier reassessing future participation in Airbus Canada Limited Partnership

All amounts in this press release are in U.S. dollars unless otherwise indicated.

MONTREAL, Jan. 16, 2020 (GLOBE NEWSWIRE) — Bombardier (TSX: BBD.B) today announced its preliminary results for the fourth quarter and full year 2019. The Company now expects lower than previously guided financial performance, mainly as a result of actions taken to resolve challenging rail projects, the timing of milestone payments and new orders at Transportation, and the delivery of four Global 7500 aircraft slipping into the first quarter of 2020.  

Preliminary Results for the Fourth Quarter and Full Year 2019

 Fourth Quarter 2019
Expected Results
Full Year 2019
Expected Results
Consolidated Revenues~$4.2B~$15.8B
Aviation~$2.4B~$7.5B
Transportation~$1.8B~$8.3B
Consolidated Adjusted EBIT1,2~$(130)M~$400M
Aviation~6%~7%
Transportation~(13)%~1%
Consolidated Adjusted EBITDA1,2~$0M~$830M
Free Cash Flow1~$1.0B~$(1.2)B
Aircraft deliveries (in units)58175
Business Aircraft52
Incl. 6 Global 7500
142
Incl. 11 Global 7500
Commercial Aircraft633
Backlog aat December 31, 2019  
Business aircraft~$14.4B 
Transportation~$35.7B 

1 Non-GAAP financial measures. Refer to the Caution regarding Non-GAAP financial measures below for definitions of these metrics.

2 Excludes Airbus Canada Limited Partnership (ACLP) equity pick-up.

Aviation deliveries were strong in the quarter, totalling 58 aircraft in the fourth quarter for a total of 175 aircraft for the full year. This included 11 Global 7500, six of which were delivered in the fourth quarter. The remaining Global 7500 aircraft originally scheduled for delivery in the final days of 2019 are now expected to be delivered in the first quarter of 2020. As Aviation made good progress ramping up the Global 7500, its full year adjusted EBIT margin is still expected to be approximately 7.0%, in line with full year guidance.

At Transportation, the fourth quarter adjusted EBIT loss is anticipated to be approximately $230 million. This includes a charge of approximately $350 million related to certain projects in the UK (the Aventra platform), commercial negotiations with Swiss Federal Railways (SBB), and increased production and manufacturing costs for projects in Germany.

Delays in achieving technical milestones, including multi-unit software homologation for the London Overground’s LoTrain project (an Aventra project), and execution of production ramp-up required the Company to re-align certain delivery schedules with customers and absorb additional costs. Having achieved these milestones in the fourth quarter, Bombardier has entered into commercial negotiations with customers – to reset schedules, resolve late delivery penalties, and address related provisions and costs.

Consolidated free cash flow for the fourth quarter is estimated at approximately $1.0 billion, approximately $650 million lower than anticipated. This is largely due to the timing of cash inflows from milestone payments on large Transportation projects, and the later-than-anticipated closing of certain orders and call-offs. While the free cash flow shortfall is largely expected to be recovered in 2020, the recovery will be offset by the cash flow impact of the incremental costs recognized in the fourth quarter adjustments at Transportation.

While fourth quarter financial performance at Transportation was lower than expected, the Company continues to make significant progress completing legacy projects and to take the right actions to position the business for long-term success.

Airbus Canada Limited Partnership Update (ACLP)
With its exit from Commercial Aerospace, Bombardier is reassessing its ongoing participation in ACLP.

While the A220 program continues to win in the marketplace and demonstrate its value to airlines, the latest indications of the financial plan from ACLP calls for additional cash investments to support production ramp-up, pushes out the break-even timeline, and generates a lower return over the life of the program. This may significantly impact the joint venture value. Bombardier will disclose the amount of any write-down when we complete our analysis and report our final fourth quarter and 2019 financial results.   

Acceleration of Deleveraging Phase of Turnaround

Liquidity remains strong, with year-end cash on hand of approximately $2.6 billion. The CRJ program sale to Mitsubishi Heavy Industries, Ltd (MHI) and Aerostructures sale to Spirit AeroSystems Holding, Inc., both of which are still tracking to close by mid-year, will provide an additional $1.1 billion of cash subject to customary closing adjustments. The Company has received most of the regulatory approvals required for closing of the CRJ sale.

Consistent with Bombardier’s five-year turnaround plan, and following a comprehensive review of strategic alternatives, the Company is actively pursuing options to strengthen its balance sheet and enhance shareholder value.

“Since launching our turnaround plan, we have addressed our underperforming aerospace assets, completed our heavy investment cycle, and put the Company on a solid path toward organic growth and margin expansion while prudently managing our liquidity and heavy debt load,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. “The final step in our turnaround is to de-lever and solve our capital structure. We are actively pursuing alternatives that would allow us to accelerate our debt paydown. The objective is to position the business for long-term success with greater operating and financial flexibility.”

The Company will provide additional information when it reports its fourth quarter and full year 2019 financial results on February 13, 2020.