Bombardier To Slash 7000 Jobs Over Next Two Years As Earnings Fall

Most of the positions impacted will be in Canada and Europe, where the company’s aerospace and rail transportation activities are based.

The Canadian group has outlined its intention to reduce its workforce by 580 this year and a further potential 500 jobs next year.

Bombardier Inc said it received the first order in 16 months for its CSeries aircraft, sending its shares up as much as 30 percent and overshadowing news of the planemaker’s lower-than-expected quarterly results and plan to cut 7,000 jobs.

“This is a fantastic win for Bombardier”, said Bellemare, noting the Air Canada order calls for 45 planes, with options for another 30.

To hear Bellemare talk about Bombardier, one might wonder why the company needs all this government help.

“Given how many MPs are from Quebec, and the fact the prime minister and the transport minister both have their ridings in Montreal”, he said.

The minister sang the praises of the Bombardier’s new aircraft, but he did not immediately commit to helping the troubled company out of its financial difficulties.

The ramp-up of the C Series will boost jobs at Bombardier, the company said.

Air Canada is moving ahead with its narrowbody fleet renewal program and expanding its hub and network growth with a letter of intent to purchase up to 75 Bombardier CS300 aircraft.

Prior to announcing the layoffs, Bombardier cut its 2015 revenue loss from $5.3 billion by reducing its above-the-line expenses.

“The Act was written at a time when the market for the air industry lacked a competitive environment” and the company held more than 80 percent of the domestic market, the airline wrote in its submission.

Quebec Premier Philippe Couillard should call Prime Minister Justin Trudeau to ask for a lifeline for Bombardier – similar to Ontario’s deal with the federal government over the auto industry bailout, said Péladeau at a news conference early Wednesday.

“We are continuing our dialogue with Bombardier on its request for federal assistance”, he said. “We now have a clear plan in place and are applying disciplined execution to make Bombardier stronger”. BA is engaged in the design, manufacture and support of aviation products. Having reached deals to raise $2.5 billion in the fourth quarter, Bellemare is now attempting to secure additional financing from Canada’s federal government.

The Quebec government, which gave Bombardier a US$1 billion lifeline previous year, said it would drop a lawsuit against Air Canada.

Bombardier also announced Wednesday that it lost US$5.34 billion for 2015, including a US$677 million loss in the fourth quarter.

Air Canada also announced it has agreed to have its C Series airframe heavy maintenance work performed in Quebec by a recognized maintenance provider for a minimum of 20 years from first delivery in 2019.

Air Canada appealed to the Supreme Court, but sources say the airline was anxious it would lose the appeal and be forced to relocate the maintenance facilities in Quebec at great cost.