Aircraft
Big order fails to halt CRJ rate cut
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 Bom

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 last month, as the company moved ahead with plans to cut CRJ production rates for its 2010 fiscal year.

Although during the company’s third-quarter conference call last month Bombardier Aerospace president and CEO Pierre Beaudoin and COO Guy Hachey declined to offer precise production rate guidance, 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.