Aircraft
Big Bombardier CRJ Order Fails To Save Jobs, Halt Rate Cut
A conversion of a letter of intent into a firm order

A conversion of a
letter of intent into a firm order for 22 CRJ700s by American Airlines this month failed to save the jobs of more than 600 employees at Bombardier Aerospace, as the company prepares to move ahead with plans to cut CRJ production rates for its 2010 fiscal year.

Although Bombardier Aerospace president and CEO Pierre Beaudoin and COO Guy Hachey declined to offer precise production rate guidance during the company’s third-quarter conference call this month, delivery trends for 2009 already appeared to show a distinct deceleration due to delays in customer financing. Bombardier delivered 42 airplanes during the first three fiscal quarters of this year, but just 12 during its third fiscal quarter, equating to four per month. By contrast, it delivered seven CRJs in January 2009 alone.