Bombardier News

With the news out that Gulfstream bested Bombardier's initial record-breaking 8,125 nautical Global 7500 flight from Changi, Singapore to Tucson, Arizona by 44 minutes and flying 8,379 nautical miles, what is Bombardier going to do? After 2020 are we going to see something like a Global 7500XR/ER? Also perhaps does Gulfstream have something in the pipeline to keep fending-off this latest 'challenger'...maybe a G750? These are real questions that have to be asked. However, one thing that is known is these two companies will keep slugging it out to remain #1 at the top of the long-range game.

In parallel to the opening of Centennial College Downsview Campus Centre for Aerospace and Aviation, Bombardier Commercial Aircraft announced recently the donation of a CRJ200 aircraft to the Centennial College Aviation Program at its new campus based in Downsview, to be used in the education and training of the future generation of aerospace professionals.

The CRJ200 is the first one of its kind to grace the Centennial College’s Downsview facility hangar, it is also the biggest plane as well as the first ever commercial aircraft to be received at the site. The aircraft will allow students not only to have a hands on experience with CRJ Series technology, but also to learn on a bigger scale, furthering the level of expertise made available through the Centennial College Aviation Program. "Advancement and innovation have always been at the forefront of Bombardier’s values, says Fred Cromer, President, Bombardier Commercial Aircraft, which is why we are honored to present Centennial College with this CRJ200 aircraft. This donation represents not only an opportunity for the Toronto aerospace sector to grow but rather for the whole of Canadian Aerospace, which will surely benefit from it today. We are at a crucial moment in Canada where the aerospace industry is building up steady growth and the demand for skilled workers is also rising. At Bombardier, we want to do anything we can to help and improve present and future generations of aerospace workers in Canada."

It appears that Mitsubishi is in talks with Bombardier to purchase the CRJ program. On June 5th the Japanese company Mitsubishi Heavy Industries Ltd suggested that it had reached an 'advanced' stage in the negotiations concerning the Canadian regional jet line. Part of the issue for Bombardier is that they are bleeding money from this program which has not increased its backlog for the models in the CRJ line pass 2020. If this Japanese acquisition happens then it would mark the end of an era for Bombardier and this line which was purchased back in 1986 from Canadair.

Here is the official statement from Bombardier regarding getting rid of the CRJ program.

As of June 1, 2019 Bombardier shed the Q400 program over to De Havilland of Canada. The Q400 will now be known as the Dash 8-400. Earlier last week the company delivered the first Dash 8-400 to Kazakhstan’s Qazaq Air. The aircraft doesn't have a healthy backlog at present only able to produce into mid to late 2020, i.e a year's worth of production at present.

If you are looking out for the second quarter of 2019 financial results then Bombardier says they will be holding a live webcast/conference call on August 1. Alain Bellemare, President and Chief Executive Officer; John Di Bert, Senior Vice President and Chief Financial Officer; and Patrick Ghoche, Vice President, Investor Relations, will hold a conference call intended for investors and financial analysts to review the company’s financial results at 8AM (ET).

Global 7500 at the 2019 Paris Air Show

"We are very happy with our continued momentum in aerospace, where our transformation is progressing ahead of plan," said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. "We have successfully addressed our underperforming commercial aircraft programs and are now fully focused on business aviation, where the ramp-up of Bombardier’s largest growth program, the Global 7500, is proceeding as planned, as are our aftermarket growth strategy and our product portfolio enhancements."

Second Quarter 2019 Results

Bombardier’s revenues for the quarter were $4.3 billion. Adjusted EBITDA and adjusted EBIT for the quarter were $312 million and $206 million respectively, mainly driven by a 7.0% adjusted EBIT margin at Business Aircraft while Transportation recorded a 5.1% adjusted EBIT margin. Transportation’s lower margin reflects additional cost pressure mainly on its large, complex legacy projects. On a reported basis, EBIT of $371 million is largely driven by the gain of $219 million on the sale of the Q Series program.

Free cash flow usage was $429 million for the quarter and $1.5 billion year to date, in line with the Company’s expectations for the first half of 2019. Free cash flow performance was solid across aerospace segments, offsetting a softer performance at Transportation. Bombardier also maintained a healthy liquidity position, closing the quarter with $3 billion of cash on hand.

Bombardier is pleased to announce that L.J. Aviation, a world-class aircraft flight management and charter aircraft company, has expanded its fleet with its latest addition of two industry-leading Challenger 350 aircraft. The high-performing Challenger 350 business jets join the company’s existing fleet of 40 aircraft and are available for charter in the Mid-Atlantic States. "We are thrilled to receive our Challenger 350 aircraft," said Ed Kilkeary Jr., President, L.J. Aviation. "It delivers everything we want in a business jet: outstanding performance, a comfortable and productive environment, and advantageous operating costs. The Challenger 350 aircraft is a sound investment that will make the most of our passengers’ time."

Vistajet has ordered up to six (6) Bombardier Global 7500 ultra-long range jets. The first jet in this new class is expected to be delivered to Vistajet by January of 2020 while the others will be handed over through that year as needed. "Vista Global is the first and only group to offer passengers access to the ultimate business flying machine, the Bombardier Global 7500. The 7500 is a truly unrivalled jet when it comes to speed, space and innovation, and being able to offer it to our members ensures that we continue to the lead the way in transforming the aviation industry,"said Thomas Flohr, founder and chairman, Vista Global.Vistajet operates a fleet of all-Bombardier aircraft including 27 Global 6000s. They also operate Challenger 605, 350 and Global 5000 jets.

Bombardier says it will report on its Q3 performance on Oct 31st. The company will publish its financial results for the third quarter of 2019 on Thursday, October 31, 2019 and hold a live webcast/conference call to review the results starting at 8 a.m. Eastern Time (EDT). Alain Bellemare, President and Chief Executive Officer; John Di Bert, Senior Vice President and Chief Financial Officer; and Patrick Ghoche, Vice President, Corporate Strategy and Investor Relations, will hold a conference call intended for investors and financial analysts to review the company’s financial results.

Bombardier is expected to make an announcement this morning regarding the future of its Global line in Toronto. At 9:30 a.m. EST in Mississauga, Ontario the announcement should commence. Bombardier’s senior executives will be joined by elected officials and stakeholders. The award-winning flagship Global 7500 aircraft will be on display for private tours. Media are encouraged to arrive at 9:00 a.m. for camera set-up.

Bombardier has donated one of the Global 7500 Flight Test Vehicles (FTVs). Centennial College announced 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.

Airbus SE (EPA: AIR), the Government of Québec and Bombardier Inc. (TSX: BBD.B) have agreed upon a new ownership structure for the A220 programme, whereby Bombardier transferred its remaining shares in Airbus Canada Limited Partnership (Airbus Canada) to Airbus and the Government of Québec. The transaction is effective immediately. This agreement brings the shareholdings in Airbus Canada, responsible for the A220, to 75 percent for Airbus and 25 percent for the Government of Québec respectively. The Government’s stake is redeemable by Airbus in 2026 - three years later than before. As part of this transaction, Airbus, via its wholly owned subsidiary Stelia Aerospace, has also acquired the A220 and A330 work package production capabilities from Bombardier in Saint-Laurent, Québec.

Bombardier statement on yesterday's fire in Northern Ireland

Thanks to the incredible work of the Northern Ireland Fire and Rescue Service, along with our security, health and safety and operations teams, as well as strict safety protocols and fire prevention infrastructure within our buildings, yesterday’s fire was contained within one area of the factory. While there is damage to some machinery and a portion of the roof, there is no damage to any aircraft structures or aerostructure assembly lines. Following thorough safety inspections, work has resumed as normal in other areas of the factory. We will work with our customers and suppliers to address any production concerns, however we are confident there will be minimal impact to customer deliveries.

No news but just enjoy this short clip by Bombardier on the Global 7500.

Bombardier (TSX: BBD.B) confirmed recently the closing of the previously announced sale of the CRJ Series aircraft program to Mitsubishi Heavy Industries, Ltd (MHI) (TOKYO:7011) for a cash consideration of approximately $550 million, subject to post-closing adjustments and the assumption of liabilities by MHI related to credit and residual value guarantees and lease subsidies amounting to approximately $200 million. Under the agreement, the Corporation’s net beneficial interest in the Regional Aircraft Securitization Program (RASPRO), which is valued at approximately $170 million, has been transferred to MHI.

Through this sale, MHI acquires the maintenance, support, refurbishment, marketing, and sales activities for the CRJ Series aircraft, including the related services and support network located in Montréal, Québec, and Toronto, Ontario, and its service centres located in Bridgeport, West Virginia, and Tucson, Arizona, as well as the type certificates. Bombardier will continue to supply components and spare parts and will assemble the remaining 15 CRJ aircraft in the backlog as of March 31, 2020 on behalf of MHI until the complete delivery of the current backlog, expected in the second half of 2020.

Bombardier is expected to cut its workforce significantly this year. This is a response to drop in orders directly related to the fallout from the global Corona virus situation. On June 5th the company said, "Now, with business jet deliveries, industry-wide, forecast to be down approximately 30% year-over-year due to the pandemic, Bombardier must adjust its operations and workforce to ensure that it emerges from the current crisis on solid footing." How many persons are on the line you might be asking? Approximately 2,500 workers will be sent home.

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

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 multi-pronged 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.

On November 5, 2020 at 8:00 a.m., EST, Éric Martel, President and Chief Executive Officer; John Di Bert, Senior Vice President and Chief Financial Officer; and Patrick Ghoche, Vice President, Corporate Strategy and Investor Relations, will hold a webcast/conference call intended for investors and financial analysts to review the company’s financial results for the third quarter ended September 30, 2020.