Aircraft
Soft Market for Regional Aircraft Will Prompt Bombardier To Revisit Rate Cuts This Fall
Bombardier Aerospace continues to suffer from what executives characterized as a soft market for regional aircraft.
CRJ production will remain stable for the time being while Bombardier attempts to restore a healthy backlog. (Photo: Bombardier)
CRJ production will remain stable for the time being while Bombardier attempts to restore a healthy backlog. (Photo: Bombardier)

Bombardier Aerospace continues to suffer from what executives characterized as a soft market for regional aircraft. However, the company stopped short of announcing further cuts to production rates as widely expected. It plans to revisit the possibility of rate cuts to both the Q400 turboprops and CRJ regional jets this fall, Bombardier Aerospace president and COO Guy Hachey said during the company’s second-quarter earnings call on Wednesday.

Anticipating building some 90 CRJ regional jets and Q400 turboprops during the 11-month period ending December 31, Bombardier earlier this year signaled a “slight reduction” of turboprop rates to take effect this fall to help its Q Series backlog stabilize at nine months. Analysts expect a similar announcement related to CRJs, the backlog for which now stands at 15 months.