Regional aircraft manufacturer Bombardier is to cut more than 1,300 jobs, half of which will be axed from its UK facility in Belfast, as a result of a decision to reduce production rates for its jet aircraft lines.
It will reduce the production rates for its CRJ700 and CRJ900 jet aircraft from next month to one every five days – down from one every three days – and will deliver around 65 aircraft in the year to 31 January 2007. Deliveries will fall to around 50 aircraft in the 2007-08 fiscal year.
But this will be partly offset with a rise in turboprop production from this month. The manufacturer expects to deliver about 50 aircraft this year and 65 in 2007-08.
“Restructuring of the airline industry continues, with relatively few orders for regional jets in the 70- to 90-seat jet category being awarded in recent years,” admits Bombardier Aerospace president and chief operating officer Pierre Beaudoin.
“This situation should improve as attested by the numerous sales campaigns we are actively pursuing. However, we must be prudent and manage proactively our CRJ700/900 jets production schedule in the short term to ensure we achieve our goal of increased profitability and our success in the long term.
“This means making difficult but necessary decisions. We recognize the impact this decision will have on our affected employees and we will treat them fairly and with respect.”
Reduction of regional jet production rates will result in the loss of 1,330 employees over a nine-month period. The Belfast site will lose 645 staff from January next year while another 485 will be shed at Montreal facilities from next month.
Bombardier will also axe 200 managers and other employees in Canada starting from this month. The manufacturer expects costs associated with the lay-offs to reach around $31 million.
The company points out that its Toronto plants – which build Bombardier turboprops and business jets – will have increased staffing levels by more than 800 by the end of the present fiscal year.
“While the order level for larger regional jets is still challenging, the order book for turboprops is growing,” says the company. “Furthermore, orders and deliveries of business aircraft continue to rise year over year.”
Source: FlightGlobal.com
