Bombardier Sells the Q400 Program
Bombardier disclosed the sale of their Q400 turboprop program. The program will be sold to a subsidiary of Long View Aviation Capital Corporation for around US $300 Million. That subsidiary is aircraft manufacturer Viking Air of Canada.
While the Q400 turboprop program is going to be sold all assets for the other Dash 8 models will also be sold. This includes the other variants like the Q200, Q300, and Q100. The move comes as a shock as just months ago Airbus took ahold of the C Series program now known as the A220 series of aircraft with Airbus.
The departure of the Q400 turboprop family leaves Bombardier with just the CRJ regional jet which they now note will be their complete priority. They hope to have 1,500 CRJs in the sky eventually with the need for regional jets growing as older airframes like the 717 and more depart airlines.
The decision comes after earnings rose 48% this year to 271M with 3.6B in revenue. The deal to sell noncore assets and monetization of royalties will result in around 900 million in net proceeds going to the aircraft manufacturer. This deal though for the Q400 will close in the second half of 2019.
While the Q400 news is big the aircraft manufacturer will also cut 5,000 jobs as it continues to restructure its business. These restructure though is ongoing so there is every possibility we will see more jobs cut. For some time now the restructuring has been in full force with the arrival of a new CEO.
In a statement the CEO said “With our heavy investment cycle now completed, we continue to make solid progress executing our turnaround plan. With today’s announcements, we have set in motion the next round of actions necessary to unleash the full potential of the Bombardier portfolio,”
However, the Global 7500 business jet securing US certification. This is the manufactures latest business jet and can perform ultra long range travel. It’s expected to be put into service by the end of this year.
Credit: Marvin Mutz