Bombardier aims to bolster its business jet backlog as it faces a possible cut in regional jet production rates. The manufacturer last week reported a $58 million net profit for its fiscal second quarter, about half the earnings recorded for the same period last year.
This dip, and a slight drop in revenue, was attributed to a 15 unit year-on-year fall in regional jet deliveries to 16 aircraft (all CRJ900s) and lower prices for those few being sold. "We are building as many business jets as we feel the market can take," says Bombardier Aerospace president and chief operating officer Pierre Beaudoin. "We prefer to build backlog to a certain degree so that we can be more stable depending on the economic cycles." That control of its backlog, which Beaudoin says stands at between two and three years depending on the business jet, is also a contributing factor in a possible reduction in Bombardier's regional jet production. In a decision that will be made in the next few months, the company could reduce its current target of 75 regional jets a year unless the orderbook improves.
"I think there is the potential to maintain the production rate that we have in place today. But, at the same time, I am saying it is likely that we will have to reduce [our] production rate," says Beaudoin, adding that a revival in US demand is key to the decision.
However, current orders indicate a low point in regional jet orders. In the second quarter just nine of the company's 67 orders were for commercial aircraft.
Source: Flight International