Bombardier raises red flag over slipping light jet deliveries
Aug 8, 2016
Bombardier has announced a dip in both revenue and business aircraft deliveries in the second quarter of 2016. The aerospace and transportation company’s business jet deliveries slipped by five units compared to the same period last year.
However, Bombardier’s management has said that the performance was in line with cuts the company had previously announced, and that it is still on target to achieve the projected 150 deliveries in 2016.
Despite that, the company’s executives told analysts they were concerned about the continuing weakness in the light jet market, according to Aviation International News.
The corporate and business aviation news magazine reports that global deliveries dropped by six units to 14 in the second quarter of 2016, the steepest decline of the quarter, and Challenger 350 deliveries dropped by two to 16.
Learjet deliveries remained stable at five units, while Challenger 605/650 deliveries grew, increasing from four units to seven units.
With global deliveries dropping, so did revenue for the quarter, which fell 19 percent to $1.473billion (£1.129billion). However, this decline did not translate to losses, thanks to cost cutting; profits for the quarter rose by 78 percent to $212million (£163million) before interest and taxes.
In the first half of 2016, deliveries dropped by 19 units to 73. Global deliveries accounted for nine of the lost units, and Learjet deliveries for eight units.
While orders for the Learjet series improved in the second half of 2015, Bombardier President and CEO Alain Bellemare said the company will re-evaluate how the aircraft are positioned in the market.
He cited poor light aircraft sales and pricing pressure as reasons for Bombardier’s Learjet deliveries dropping by more than 50 percent in a year, and said that the company will monitor the situation, push sales and see where that leads.