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
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.