Placing the blame primarily on a “severe downturn” in the U.S. business aviation market, Canadian OEM Bombardier last week slashed its net-income target for the current fiscal year by 21 percent. The company, which saw its business aircraft deliveries drop from 114 in the first half of last year to 74 for the same period this year, said the forecast includes a “one-time charge” to write down the value of used business aircraft.
Bombardier has named Guy Hachey president and COO of its aerospace division, following Pierre Beaudoin’s promotion to president and COO of Bombardier Inc. Hachey brings more than 30 years of experience in the industrial manufacturing sector to the Montreal-based airframer, first with GM and most recently with Delphi.
Bombardier Aerospace officially opened last month its Commercial Service Center (CSC) in Mirabel, Quebec, Canada. The CSC is “dedicated to the specific service and support needs of the more than 1,600 out-of-production de Havilland DHC-1 through -7 aircraft still in production,” according to Bombardier.
The case of Kittredge Aviation & David Wetherell v. Bombardier Aerospace, Bombardier, Inc. and General Electric has been slated for an April 2003 trial, according to David Bunis, partner, Dwyer & Collora, LLP, who represents the plaintiffs. “Bombardier and GE have produced many relevant documents to the case and we’re moving forward,” Bunis told AIN.
Bombardier today announced substantial changes to its aerospace group leadership team, most notably naming auto industry veteran Guy Hachey Bombardier Aerospace’s new president and COO, effective May 12. A transition period will follow until June 4, when Pierre Beaudoin, Bombardier Aerospace’s current president and COO, will take over the position of president and CEO of parent company Bombardier, as previously announced last fall.
Another truss fell from Fairchild Dornier’s tenuous financial footing last month, as potential suitor Bombardier Aerospace declared that it no longer harbored any interest in investing in the foundering 728 and 928 programs. The timing of the decision came as a surprise, given Bombardier president and CEO Robert Brown’s prior indications that the company’s commercial analysis would last until at least late this month.
FlightSafety International and Bombardier Aerospace have received JAA approval for certain training programs. The Joint Aviation Authorities approved FSI’s pilot training for the Falcon 50, 900 and 2000 series, as well as the Challenger 600, 601 and 604. Meanwhile, Bombardier said it became the first North American company to receive JAA approval of maintenance training for the Challenger 604 and Global Express.
Bombardier’s board of directors issued authority to the company’s aerospace division to formally offer its proposed C Series airliner to potential customers. Bombardier Aerospace new commercial aircraft president Gary Scott told AIN that he now needs at least one, if not two, “high quality” customers for between 50 and 100 airplanes to gain launch approval from the board.
Bombardier Aerospace expects to conclude negotiations soon with Chinese state aerospace conglomerate AVIC I on the terms of an agreement under which the Canadian company would help China develop the 105-seat ARJ21-900. For its part, Bombardier would get $400 million and a risk-sharing partner in the proposed
C Series airliner, due for industrial launch some time this year.
As it prepares for an anticipated program launch of its C Series airliners later this year, Bombardier continues to fine-tune the design to achieve further operating cost reductions. With the price of jet fuel having almost tripled over the past three years, Bombardier’s goal of achieving a 15-percent cash operating cost benefit had become all the more daunting.