In The Works: Bombardier Learjet 70/75
Bombardier has pushed back certification of the Learjet 70/75 to the fourth quarter of this year, from what had been planned to be an early-2013 entry into service. “Our supplier, Garmin, encountered some difficulties in delivering its avionics hardware and software,” a Bombardier spokeswoman told AIN. The Learjet 70/75 were slated to be the first jets certified with Garmin’s G5000 flight deck, although Cessna’s Sovereign might now enter service before the new Learjet.
In a proxy statement filed on March 14, Garmin explained that it is providing a short-term, interest-free loan of $173.7 million in cash in seven installments “to assist Bombardier in connection with delayed cash flows from the program partially related to the certification of avionics for the program exceeding the planned delivery date.” The proxy statement added: “Conditional upon Garmin International returning to Learjet a flight-test vehicle and delivering specified Garmin software and hardware to Learjet no later than July 11, 2013, Bombardier will repay the loan in five installments beginning on Nov. 1, 2013 and ending on March 7, 2014, provided that the repayment dates will be extended on a day-for-day basis if the July 11, 2013 milestone date is extended.”
According to a Garmin spokesman, “These integrated systems are extremely complex with many interdependencies. While we are unable to comment on the exact nature of any delay, we are working diligently to ensure that this delay is brief.”