Concerns for Belfast as Bombardier prepares to axe 5,000 jobs

The logo of Bombardier is seen during the Latin American Business Aviation Conference & Exhibition fair at Congonhas Airport in Sao Paulo Brazil Aug. 14 2018

The logo of Bombardier is seen during the Latin American Business Aviation Conference & Exhibition fair at Congonhas Airport in Sao Paulo Brazil Aug. 14 2018

Chief Executive Alain Bellemare told analysts on a conference call the sale and other changes would allow the company to "focus on the biggest growth opportunities in our business segments".

Bombardier Inc is set to announce the sale of its Q400 turboprop aircraft program to Canadian aircraft manufacturer Viking Air, a person familiar with the matter said late on Wednesday.

The Montreal-based company manufactures roughly 28 to 30 Q400 aircraft annually at its Downsview property in Toronto, land that the company sold earlier this year to the Public Sector Pension Investment Board. The layoffs are expected to take place over the next 12 to 18 months and are expected to save Bombardier $250 million by 2021. Analyst judged that Bombardier's Q series would provide little or no profit Before, Bombardier announced the sale of the turboprop division analyst George Ferguson of Bloomberg Intelligence said that he thought that the Q Series would generate little or no profit for the company this year.

Net profit of US$149 million compared with a net loss of US$100 million a year ago when the company was making heavy investments in various segments including planes. Bellemare cited capital needs at the company's rail business for spoiling the cash-flow goal, which includes leeway of plus or minus US$150 million.

CAE is picking up the training business for $645 million, along with spending an additional $155 million for the monetization of royalties from the business.

Bombardier will also lay off 5,000 employees from across its various divisions.

Bombardier said it would try to make its regional jet program profitable by reducing costs, and boosting volumes and after-market sales, but would also explore strategic options for the program. The largest group will move to the private-plane operation "to ensure they have all the necessary capabilities for future business jet development programs", Bombardier said.

The deal, which is slated to close in the second half of 2019, positions Longview to more than triple its annual revenue to $1 billion, Curtis said.

Bombardier workers face uncertainty after the Canadian aerospace giant announced 5,000 job cuts around the world.

Excluding one-off and one-time items, Bombardier posted quarterly adjusted earnings of 4 cents a share, above the consensus of analysts who expected a gain of 2 cents.

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