Flight International online news 14:00GMT: Bombardier will suspend production of the CRJ200 model in January in the face of a rapidly declining order backlog as the increasing cost of fuel pushes demand away from the 50-seat jets towards larger regional jets and turboprops.
The company, which had already planned to slash CRJ200 output to 18 units in its next financial year, says it has decided to suspend output completely to “realign its production to the current market outlook for 50-seat regional jets”. It adds that the move “will result in the implementation of the remaining 660 of the 1,135 layoffs announced in August” which will immediately affect Bombardier’s Montréal-area and Belfast facilities.
The company is aiming to partially offset the temporary closure by restarting production of its CL-415 water bomber, as well as by the increased output of Bombardier business aircraft. Production of the Challenger 850 business jet which is based on CRJ200, is not affected by the suspension. Three Challenger 850s remain on firm order.
Pierre Beaudoin, President and Chief Operating Officer, Bombardier Aerospace, says that the company’s drive to increase profitability means “making difficult but necessary decisions”, and adds that “the combination of increased passenger traffic, lower yields and more relaxed pilot scope clauses are driving regional airlines toward larger capacity aircraft”.
Bombardier has delivered 1,013 50-seat CRJ models since production began in 1992.
However after a sustained period of strong demand and output, orders have recently slowed dramatically and the current firm backlog stands at 55 aircraft. Bombardier says that its total aircraft deliveries for this fiscal year 2005/06 will remain, as planned, approximately the same as last fiscal year.
Source: Flight International
