Bombardier announced that, as of mid-January 2006, it will temporarily suspend the production of its CRJ200 aircraft to realign its production to the current market outlook for 50-seat regional jets. Production of the Challenger 850 business aircraft, the corporate variant of the CRJ200, will continue on the existing assembly line.

The total number of Bombardier aircraft deliveries for the fiscal year 2005/06 will remain, as planned, approximately the same as last fiscal year. Production of the Challenger 850 business aircraft, derived from the CRJ200 platform, is not affected.

Bombardier will also resume production of its world-renowned Bombardier 415 amphibious firefighting aircraft to meet expected demand in the coming years.

The impact on the level of employment from the temporary suspension of the CRJ200 production will result in the implementation of the remaining 660 of the 1,135 layoffs announced last August. These layoffs will take place at Bombardier's Montreal-area and Belfast facilities, starting in November 2005.

The total number of layoffs is mitigated by the new production of Bombardier 415 and the positive effect of increased Bombardier business aircraft deliveries. The total number of Bombardier aircraft deliveries for this fiscal year 2005/06 will remain, as planned, approximately the same as last fiscal year.

"In the last 13 years, the CRJ200 aircraft's success has been a great asset for Bombardier. However, the combination of increased passenger traffic, lower yields and more relaxed pilot scope clauses are driving regional airlines toward larger capacity aircraft. With our well-established customer base and regional aircraft such as the CRJ700/CRJ900 jets and Q400 turboprops offering outstanding economics, we are ready to capitalize on these market trends. We must, however, continue to manage our production schedule to remain competitive and achieve our goal of increased profitability. This means making difficult but necessary decisions," said Pierre Beaudoin, President and Chief Operating Officer, Bombardier Aerospace.

"We continue to profit from a strong business aircraft market with our leading line up of innovative business jets. This fiscal year, in the second quarter alone, deliveries of Bombardier business jets increased by 41 per cent and net orders by 63 per cent over the same period last year," added Mr. Beaudoin.

FMI: www.bombardier.com