Triumph Sues Bombardier Over Global 7000 Delay Costs

 - January 6, 2017, 1:21 PM

Triumph Group has filed a lawsuit seeking $340 million from Bombardier for costs associated with the Global 7000 program. According to a January 5 notice to the U.S. Securities and Exchange Commission, Triumph filed the lawsuit in the Quebec Superior Court in Canada on December 22 over “Bombardier’s failure to pay to Triumph Aerostructures certain non-recurring expenses incurred…during the development phase of a program.”

Triumph is under contract to design, manufacture and supply the wing for the ultra-long-range, four-zone aircraft that is to become the flagship of Bombardier’s business aircraft line. The supplier said it is seeking the monetary award to compensate for “Bombardier-directed changes to the original wing requirements for the Global 7000 program, as well as Bombardier’s delays, disruptions, acceleration and interference in connection with its contract with Triumph Aerostructures.”

Bombardier, which in 2015 had cited issues related to the Global 7000 wing as a factor in its decision to delay the aircraft program, said the Triumph claim is “without merit” and the company “intends to firmly defend its position.” The Canadian aircraft manufacturer stressed that the claim relates to the design and development of the wing, which is mostly complete and undergoing flight validation.

“At the appropriate time, Bombardier will assert its major claims against Triumph for losses sustained due to the program schedule revision announced in July 2015,” Bombardier said. “Bombardier’s delay claims will exceed the value of the claim filed by Triumph.”

Triumph said it plans to continue to support the Global 7000 program, and Bombardier added that the companies remain focused on certification. “Our collective focus remains on achieving entry-into-service in 2018, and this dispute does not impact our ability to do so,” Bombardier said.

FTV1, which began flying on November 4, is continuing its flight-test campaign, completing a total of 18 flights so far. The aircraft transferred to its Wichita flight-test facility ahead of schedule in November, the company said, and added subsequent flight-test vehicles are “moving forward to plan.”

Bombardier CEO Alain Bellemare in July 2015 had announced the plans to slip the Global 7000 development schedule by two years. Bellemare called the 7000 a “game-changing aircraft that will define a whole new category of business jet,” but said to develop the technologies involved “is a challenge.” He added that the advanced wing was “the primary reason,” conceding “there has been some redesign.”