Sign in to follow this  
Kip Powick

Bombardier Cuts 5000 Jobs and Q-Series Program Sold

Recommended Posts

(CBC).....Bombardier has announced measures that will result in 5,000 job losses, half of which will be in Quebec, over the next 12 to 18 months. 

The Montreal-based company said Thursday morning the measures will result in $250 million in annual savings. It also announced it will sell its Q Series turboprop aircraft program to Longview Aviation Capital for $300 million. 

 

The carrier reached another agreement to sell its business aircraft flight and technical training unit, which is run out of Montreal, Quebec City and Dallas, to another Montreal multinational, CAE. 

Bombardier is also selling training services to CAE for $645 million. The transactions with CAE will total $800 million in revenue for Bombardier and are expected to be finalized by mid-2019. 

Bombardier says the deals with Longview and CAE will amount to $900 million in net proceeds.

The company's third-quarter revenues reached $3.6 billion US, a 48 per cent increase compared to its earnings for the same period last year.

Bombardier CEO Alain Bellemare said the cuts and sales are necessary, and the company would continue to "streamline" its operations. 

Share this post


Link to post
Share on other sites
Quote

Bombardier to sell Q400 programme

  • 08 November, 2018
  • SOURCE: Flight Dashboard
  • BY: David Kaminski-Morrow

Bombardier has disclosed that it is selling its Dash 8 turboprop programme to a subsidiary of Longview Aviation Capital Corporation for $300 million.

Longview is a holding company which includes Viking Air, the manufacturer of the revived DHC-6 Twin Otter programme.

Bombardier says the sale includes the Q400 programme, as well as all assets and intellectual property for other Dash 8 models – comprising the -100, -200 and -300.

 

It also involves divesting the related aftermarket operations.

Bombardier says the transaction will close by the second half of next year. It expects net proceeds of $250 million.

Having already sold the CSeries twinjet programme to a partnership controlled by Airbus, Bombardier has been left with the CRJ regional jet as its primary commercial air transport product.

Bombardier says it will give its “full attention” to the CRJ programme.

It says it will also “explore strategic options” for the CRJ, while focusing on reducing costs and increasing volumes, as well as “optimising” the aftermarket for the fleet of 1,500 CRJs in service.

 

Share this post


Link to post
Share on other sites

It's amazing to note that trudeau had nothing meaningful to offer Bombardier to keep the C Series and other programs afloat, but had no difficulty giving away 4.5 billion of our money to Kinder Morgan for absolutely nothing in return.

Kinder Morgan intends to use that windfall to pay off corporate debt, its shareholders and is now looking for a project somewhere south of the border to invest in.

Meanwhile, Canadians are losing 5000 quality jobs at Bombardier to start and substantially more as the impact widens.

Does Canada have the capacity to survive the liberal scourge?

 

 

 

 

Share this post


Link to post
Share on other sites

Seems to me that Bombardier has, over the years, enjoyed lots of our tax dollars .  Time for them to stand on their own legs

Feb 8, 2017 - Federal government to give $372.5M in loans to Bombardier. The federal government says it will give Bombardier $372.5 million in loans over four years to support the Global 7000 and CSeries aircraft projects.
Publicly, Bombardier claims it has repaid $275 million on two government loans originally worth $187 million. That ignores the dozens of other disbursements ...
Apr 3, 2017 - Justin Trudeau refused Monday to denounce Bombardier for enriching its ... to offer a loan to Bombardier in the wake of news the company's senior ... they were given by the government is doing nothing to help Canadians,

Bombardier is selling off two businesses and cutting 5,000 jobs

 
‎Today, ‎November ‎8, ‎2018, ‏‎36 minutes ago | Peter Muir

News provided by Financial Post

Reuters Nivedita Bhattacharjee and Allison Lampert November 8, 2018

Shares plunge as investors react to plan to focus on transportation and business jet units

bombardier3.jpg?quality=80&strip=all&w=7Bombardier Inc. says it’s cutting about 5,000 jobs across the organization over the next 12 to 18 months as part of a new restructuring plan.Canadian Press/Ryan Remiorz

Bombardier Inc said on Thursday it would sell two of its units for US$900 million and cut about 5,000 jobs as the Canadian plane and train maker reins in costs and focuses on its core transportation and business jet units.

Shares were down 14 per cent at 2.74 Thursday morning.

Bombardier is in the middle of a five-year restructuring program aimed at growing revenue and profit. Earlier this year, it sold a majority stake in its money-losing CSeries jet to Europe’s Airbus.

Under Chief Executive Officer Alain Bellemare, the company cut thousands of jobs in 2016, although it has also hired workers for key programs like its Global 7500 business jet.

Bellemare is working towards reducing Bombardier’s net long-term debt of US$9 billion.

The latest round of cuts account for about 7 per cent of its total workforce.

“With today’s announcements we have set in motion the next round of actions necessary to unleash the full potential of the Bombardier portfolio,” he said.

Montreal-based Bombardier is selling its turboprop program to a subsidiary of Longview Aviation Capital and its business aircraft flight and training activities to CAE Inc.

It also announced broad changes to its business operations, including redeploying its central aerospace engineering team and setting up a new team that will be tasked with applying learnings from its aerospace programs to its rail transportation business, the company said.

While the job cuts will save Bombardier about US$250 million at full run-rate, the various other changes are all aimed at “optimizing production and management processes, flattening management structures and further reducing indirect costs,” the company said.

The cost savings will be realized by 2021. The company said it forecast 2019 revenue to increase by 10 per cent to US$18 billion or more, driven by a pickup in deliveries of its Global 7500 business jets.

“We will continue to be proactive in focusing and streamlining the organization, and disciplined in the allocation of capital,” Bellemare said.

For the quarter ended Sept. 30, Bombardier reported US$267 million in earnings before interest and taxation, compared with US$133 million in the same period a year earlier, which were restated due to accounting changes.

The company’s net profit of US$149 million compared with a net loss of US$100 million last year when the company was making heavy investments in various segments including planes. Adjusted earnings per share of 4 cents beat the average analyst estimate of 2 cents a share as per I/B/E/S data from Refinitiv.

© Thomson Reuters 2018

Share this post


Link to post
Share on other sites

Longview Aviation Capital Corp. Acquires Dash 8 Program from Bombardier Inc.

 

original

Production to Continue Uninterrupted at Downsview Facility

Includes Trademark to Iconic de Havilland Brand

 

Victoria, British Columbia, November 8th, 2018: Longview Aviation Capital Corp., parent company to Viking Air Limited, a leading Canadian aircraft manufacturer, today agreed to acquire, through an affiliate, the entire Dash 8 program including the 100, 200 and 300 series and the in-production Q400 program from Bombardier Inc. Also included as part of the transaction are rights to the de Havilland name and trademark in an all-Canadian transaction.

Once completed, Longview will become North America’s largest commercial turbo-prop aircraft manufacturer.

“The Dash 8 turbo-prop is the perfect complement to our existing portfolio of specialized aircraft including the Twin Otter and the Canadair CL 215 and 415 series of water bombers,” said David Curtis, CEO of Longview Aviation Capital Corp. “We see enormous value in the de Havilland Dash 8 program, with these aircraft in demand and in use all around the world.”

As part of the agreement, Longview will receive all assets and intellectual property and Type Certificates associated with the Dash 8 program. Upon the closing of the transaction, Longview will also assume responsibility for the worldwide product support business – covering more than 1,000 aircraft either currently in service or slated for production.

Longview will continue to independently operate the program at the original de Havilland manufacturing site located at Downsview, Ontario upon closing of the transaction. The Downsview site was sold by Bombardier earlier this year but, under the terms of a lease with the new owners and a license from Bombardier, production will remain on-site until at least 2021.  As part of the transaction Longview also looks forward to welcoming Bombardier employees currently associated with the production, support and sales of the Dash 8 program.  

“We are committed to a business-as-usual approach that will see no interruption to the production, delivery and support of these outstanding aircraft,” added Curtis. “With the entire de Havilland product line reunited under the same banner for the first time in decades, we look forward to working with customers, suppliers and employees upon close of the transaction to determine what opportunities lie ahead.”

Longview and Bombardier will work closely in the period until the closing of the transaction to ensure a seamless transition for employees, customers, suppliers and other stakeholders with no interruption in production, delivery and support of the aircraft.  

This transaction builds on Longview’s established track record of acquiring and successfully operating significant aircraft manufacturing, parts and serving programs including the Twin Otter program and the Canadair CL 215 and 415 waterbomber series.

The transaction is subject to typical closing conditions and the receipt of regulatory approvals. The sale and transaction are expected to close by the second half of 2019.    

-30-

Contact:
Trevor Zeck, Longview Communications
604.375.5941   
tzeck@longviewcomms.ca

Longview Aviation Capital Corp. (LAC) was established in 2016 to manage a portfolio of long-term investments in the Canadian aerospace industry. At present, LAC includes and/or is associated with the assets of Viking Air Ltd., Pacific Sky Aviation Ltd, Longview Aviation Asset Management Inc. and Longview Aviation Services. With the addition of the Dash 8 Q Series, Longview holds the Type Certificates and entire product line of the original deHavilland aircraft company including the Twin Otter program and the DHC-1 through DHC-7 series, as well as the former Canadair CL-215, CL-215T, and CL-415 waterbomber aircraft. Through Pacific Sky, Longview also operates the world’s only certified Category “D” Full-Flight Simulator for the Series 400 Twin Otter, complete with seaplane simulation capabilities. Upon completion of the Q Series transaction, Longview will have a workforce of approximately 1,800 full-time employees in manufacturing and service support in locations across Canada including Victoria, Calgary and Toronto. 

 

https://www.lvav.ca/news?fbclid=IwAR0O2Rpm12x-iO0oUm9PgmWO6VE1EdfrQmiVemD8MDZ6zdw1ZCN9vUPxAv4

Edited by Maverick
Adding text at bottom

Share this post


Link to post
Share on other sites

Looks very much like BBD wants to put commercial aircraft manufacturing and support in its rear view mirror.

Wonder who would be interested in CRJ production? Thin order book for CRJ900/1000.

Edited by rudder

Share this post


Link to post
Share on other sites
5 hours ago, Malcolm said:

Seems to me that Bombardier has, over the years, enjoyed lots of our tax dollars .  Time for them to stand on their own legs

 

Share this post


Link to post
Share on other sites

Malcolm

I have never been a fan of the 'families' management style, nor the earlier bailouts that supported more of the same.

I was comparing the human and industrial capital that was Bombardier, real substance if you will, to the 4.5 billion worth of 'fluff' tax paying Canadians are gifting to Kinder Morgan in return.

 

Share this post


Link to post
Share on other sites
52 minutes ago, DEFCON said:

Malcolm

I have never been a fan of the 'families' management style, nor the earlier bailouts that supported more of the same.

I was comparing the human and industrial capital that was Bombardier, real substance if you will, to the 4.5 billion worth of 'fluff' tax paying Canadians are gifting to Kinder Morgan in return.

 

And of course you have factored in the Jobs and potential $$$$$$ that Kinder Morgan represents?  https://keepcanadaworking.ca/?gclid=EAIaIQobChMIyO_4j4vG3gIVmKDsCh20rgR6EAAYASAAEgL6nPD_BwE

Share this post


Link to post
Share on other sites
19 minutes ago, vanishing point said:

I wonder if the Dash 8 line-up will go back to being “deHavilland” branded.....

I sincerely hope so. Viking has done some pretty promising things with the DeHavilland line thus far.

 

Share this post


Link to post
Share on other sites

So, here is the issue. Will customers still buy the Q400? Who will financially backstop Viking if it gets in financial trouble? Is there a risk that the Viking Q400 could become another Fokker?

Commercial aircraft customers are looking for long term product support and high residual value on their acquisitions. Will that still be the case with the Q400 and the CRJ lines if both are spun off to smaller corporate entities? 

Share this post


Link to post
Share on other sites

Only time will tell, rudder.  I for one wish Viking all the best for the future.  I’m very happy the Dash 8 line is still owned by a Canadian company.

Share this post


Link to post
Share on other sites
10 hours ago, vanishing point said:

I wonder if the Dash 8 line-up will go back to being “deHavilland” branded.....

Some $300 million of the total purchase price is for the rights to the deHavilland name. 

Share this post


Link to post
Share on other sites
19 hours ago, DEFCON said:

It's amazing to note that trudeau had nothing meaningful to offer Bombardier to keep the C Series and other programs afloat, but had no difficulty giving away 4.5 billion of our money to Kinder Morgan for absolutely nothing in return.

Kinder Morgan intends to use that windfall to pay off corporate debt, its shareholders and is now looking for a project somewhere south of the border to invest in.

Meanwhile, Canadians are losing 5000 quality jobs at Bombardier to start and substantially more as the impact widens.

Does Canada have the capacity to survive the liberal scourge?

 

 

 

 

We got a functioning, profitable if old pipeline for that money, and it's considered fair value for the projected ROI. Don't let facts get in your way. As for Bombardier and the Q400, first off, congrats to Viking, which has a better record of keeping legacy products going than Bombardier. Secondly, CAE bought the bigger part of the package, and will need those or other employees to perform the work. The widening impact that you may not think of is Bombardier actually having the wherewithal to sustain its business jet operation, which is moving several new models like the Global 7500 into production, with strong sales. Yes, I think Canada will survive all of its politicians, regardless of party, and do it rather well. 

  • Thanks 1

Share this post


Link to post
Share on other sites
20 hours ago, DEFCON said:

It's amazing to note that Trudeau had nothing meaningful to offer Bombardier to keep the C Series and other programs afloat, but had no difficulty giving away 4.5 billion of our money to Kinder Morgan for absolutely nothing in return.

Kinder Morgan intends to use that windfall to pay off corporate debt, its shareholders and is now looking for a project somewhere south of the border to invest in.

Meanwhile, Canadians are losing 5000 quality jobs at Bombardier to start and substantially more as the impact widens.

Does Canada have the capacity to survive the liberal scourge?

 

 

 

 

Liberal scourge?

Lets review some facts:

The Quebec Liberals gave a Billion to Bombardier for a 49% stake in the C series.

https://www.reuters.com/article/us-bombardier-quebec-idUSKCN0SO0B620151030

The Federal lent them 372 million, they refused to give money if no changes were made to corporate structure (the Bombardier family controls the company even though they are not majority owners)

https://www.theglobeandmail.com/report-on-business/trudeau-said-to-tie-bombardier-aid-to-governance-changes/article28606149/

Bombardier rewarded upper management with bonuses after the bailout from the Quebec government.

https://montrealgazette.com/business/local-business/aerospace/quebec-decries-shocking-bombardier-bonuses-after-taxpayer-aid

And now Bombardier is cutting jobs and restructuring again...

I live in Quebec... IMHO The Federal government is the only party that acted responsibly in this situation...

Share this post


Link to post
Share on other sites

"I'm very happy the dash 8 line is still owned by a Canadian company"

VP - you might want to look up Longview Aviation Capital Corp.

This after a day or two EnCana stated it  is moving its headquarters to Denver.

"GO Justin-GO"

Share this post


Link to post
Share on other sites

According to Bloomberg:

Longview Aviation Capital Corp

Private Company

Sector: Financials
Industry: Asset Management
Sub-Industry: Investment Companies
Longview Aviation Capital Corp operates as an investment company. The Company manages portfolio of long-term investments in the aerospace industry. Longview Aviation Capital serves customers in Canada

Share this post


Link to post
Share on other sites
3 hours ago, QFE said:

This after a day or two EnCana stated it  is moving its headquarters to Denver.

 

Taking advantage of tax cuts that are adding billions per year to the US national debt. 

Edited by J.O.

Share this post


Link to post
Share on other sites
On ‎11‎/‎8‎/‎2018 at 11:49 AM, DEFCON said:

...Does Canada have the capacity to survive the liberal scourge?

Hey, but weed is legal now; that was their main concern right?!!

Otherwise failure to support industry and manufacturing, increased spending, higher taxes are the same as before.

At least it's good that production will continue, de Havilland will be resurrected and hopefully successful.

Share this post


Link to post
Share on other sites
18 hours ago, mrlupin said:

Liberal scourge?

Lets review some facts:

The Quebec Liberals gave a Billion to Bombardier for a 49% stake in the C series.

https://www.reuters.com/article/us-bombardier-quebec-idUSKCN0SO0B620151030

The Federal lent them 372 million, they refused to give money if no changes were made to corporate structure (the Bombardier family controls the company even though they are not majority owners)

https://www.theglobeandmail.com/report-on-business/trudeau-said-to-tie-bombardier-aid-to-governance-changes/article28606149/

Bombardier rewarded upper management with bonuses after the bailout from the Quebec government.

https://montrealgazette.com/business/local-business/aerospace/quebec-decries-shocking-bombardier-bonuses-after-taxpayer-aid

And now Bombardier is cutting jobs and restructuring again...

I live in Quebec... IMHO The Federal government is the only party that acted responsibly in this situation...

I would think the Quebec governments 1 Billion will be easily be offset by the liberals recently signing off on 11 Billion per year in transfer payments to the province!

Legalized corruption!  Makes a person want to drop out and start smoking government pot.

Share this post


Link to post
Share on other sites

Malcolm

Do some factoring yourself ... the jobs building the pipeline didn't materialize,  Kinder Morgan walked away with 4.5 Billion in cash and we were left with the debt.

With the loss of the C Series the nation lost the technological edge and jobs that would have gone on producing for Canadians long after the pipeline was completed.

Seems to me the Country would have been better off investing 4.5 billion in something material.

Edited by DEFCON
  • Like 1

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this