Bombardier has lost one of its key risk-sharing partners on the Canadair Regional Jet (CRJ) Series 700 programme, although the company concerned will continue as a subcontractor.
Vancouver-based Avcorp Industries says increased non-recurring costs on its contract to design and develop the horizontal and vertical stabilisers for the stretched CRJ have forced the company to write off C$8 million ($5.5 million).
Bombardier has agreed to accelerate payment of C$15 million to Avcorp for transfer of the intellectual property rights on the components. The manufacturer will be responsible for test and certification of the CRJ-700 tail.
"We could not afford to continue to spend to completion," says Avcorp, which blames design changes "beyond that anticipated" for the increased costs. Avcorp will supply production horizontal and vertical stabilisers as a subcontractor. The company supplies Bombardier with horizontal stabilisers for the CRJ-200 and Challenger.
Participation in further risk-sharing projects is "questionable", admits Avcorp. It has submitted a bid to supply the tail section of Bombardier's planned Continental mid-size business jet.
Source: Flight International
