AviTrader sponsorship ad

Bombardier pauses Learjet 85 program and revises 2014 guidance

announced the pause of its Learjet 85 business aircraft program. The pause is due to weak demand for the Learjet 85 aircraft and follows a downward revision of Bombardier's business aircraft market forecast. This reflects the continued weakness of the Light aircraft category since the economic downturn. As a result, the Company will record a pre-tax special charge in the fourth quarter of 2014 of approximately US$1.4bn mainly related to the impairment of the Learjet 85 development costs. Additionally, Bombardier will reduce its workforce by approximately 1,000 employees at its sites in Querétaro, Mexico, and Wichita, United States. A severance provision of approximately US$25 million will be recorded as a special item during the of 2015. Bombardier's Wichita and Querétaro sites remain critical facilities in key markets. Wichita is a multifaceted facility and is the location of final assembly activities for the Learjet 70 and Learjet 75 aircraft, the Bombardier Test Center as well as a Service Center. In addition to contributing to many of Bombardier's aircraft programs, the Querétaro site recently completed its Global 7000/8000 aft fuselage manufacturing building. Furthermore, following a review of preliminary results compiled by Bombardier for the fiscal year ended December 31st, 2014, it has become clear that certain guidance previously provided will not be met. Based on these preliminary results, Bombardier is updating its guidance for 2014. Earnings before financing expenses, financing income and income taxes (EBIT) before special items at Aerospace () is expected to be approximately 4% compared with a previous guidance of 5%. The variation is mainly due to increased provisions for credit and residual value guarantees, pricing pressure on new aircraft sold, as well as a decrease in fair value of used aircraft. EBIT before special items at Transportation (BT) is expected to be approximately 5% compared to a previous guidance of 6%. This variation is mainly due to revised escalation assumptions for some contracts which impacted estimated future revenues. Cash flow from operating activities at Aerospace is expected to be approximately US$800m while net additions to property, plant and equipment (PP&E) and intangible assets are expected to be approximately US$1.8bn, compared with a previous guidance for cash flow from operating activities between US$1.2bn and US$1.6bn and net additions to PP&E and intangible assets between US$1.6bn and US$1.9bn.

Share this Article
Tuesday December 3, 2024
TUI's new Boeing 737-8 aircraft from BOC Aviation are set for delivery in 2025 and 2026
BOC Aviation Limited (BOC Aviation) has entered into a leasing agreement with TUI Airways (TUI) for 14 Boeing 737-8 aircraft. The planes, which will be powered by advanced CFM LEAP-1B engines, are set for delivery in 2025 and 2026. This transaction reflects BO... Read More »
Tuesday December 3, 2024
Daniel Rodriguez took on the new position of Head of Digital Sales for IAG Cargo
IAG Cargo, the cargo division of International Airlines Group (IAG), has introduced a new role, Head of Digital Sales, appointing Daniel Rodriguez to lead the position. This strategic move reflects IAG Cargo's focus on expanding its digital capabilities to bet... Read More »
Tuesday December 3, 2024
Norwegian has extended its collaboration with Lufthansa Technik for an additional five years
Norwegian Air Shuttle ASA (Norwegian) has renewed its partnership with Lufthansa Technik (LHT) for an additional five years. This extended agreement covers base maintenance services for Norwegian's fleet of over 80 Boeing 737NG and 737MAX aircraft. Starting on... Read More »
Tuesday December 3, 2024
Since December 1, SAS has introduced plastic-free food packaging across its flights departing from Copenhagen, Oslo, Arlanda and Gothenburg
Scandinavian Airlines (SAS) is introducing plastic-free food packaging across its flights departing from Copenhagen, Oslo, Arlanda and Gothenburg. This initiative, launched on December 1, is expected to reduce 37 tonnes of single-use plastics annually. The mov... Read More »
Tuesday December 3, 2024
© Pentagon 2000 Software
Pentagon 2000 Software, a provider of software solutions for the aviation and defence industries, has unveiled its new Available-to-Promise (ATP) module. This innovative tool is designed to enhance inventory management for aerospace and defence organisations, ... Read More »
Tuesday December 3, 2024
The legal dispute centred on pricing disagreements over Honeywell’s HTF7000 turbofan engines, developed exclusively for Bombardier’s Challenger jets © Bombardier
Honeywell International and Bombardier have reached a settlement in a lengthy legal dispute while also forming a new partnership to develop advanced aviation technologies. The collaboration will focus on avionics, engines, and satellite communications, with an... Read More »
Monday December 2, 2024
TrueNoord has purchased a portfolio of seven ATR 72-600 aircraft from GOAL Aircraft Leasing
TrueNoord, the specialist regional aircraft lessor, has acquired a portfolio of seven ATR 72-600 turboprop aircraft from German asset manager GOAL Aircraft Leasing, acting on behalf of KGAL. This acquisition increases TrueNoord's fleet to over 100 aircraft and... Read More »
Monday December 2, 2024
Representatives from Honeywell and Qatar Airways © Qatar Airways
Qatar Airways has secured a ground-breaking agreement with Honeywell, becoming the first MRO provider in the Middle East and Africa authorised to service the HGT1700 auxiliary power unit (APU) used in Airbus A350 aircraft. This milestone represents a significa... Read More »
Monday December 2, 2024
Eve has secured additional funding from BNDES to advance the development of its eVTOL aircraft
Eve Air Mobility (Eve) has announced a US$35 million investment from Brazil's National Development Bank (BNDES), further strengthening its financial position to advance the development of its electric vertical take-off and landing (eVTOL) aircraft. This fundin... Read More »
Monday December 2, 2024
AutoFlight's eVTOL aircraft has completed its inaugural demonstration flight in Okayama Prefecture, Japan
AutoFlight, an innovator in electric vertical take-off and landing (eVTOL) technology, has achieved a significant milestone with its first successful flight in Japan. On November 29, the company's two-ton eVTOL aircraft completed its inaugural demonstration fl... Read More »
Monday December 2, 2024
Qantas' first A321XLR has entered the final assembly line at Airbus’ production facility in Hamburg, Germany
Qantas is one step closer to receiving its first Airbus A321XLR, as the aircraft has now entered the final assembly line at Airbus' production facility in Hamburg, Germany. This development marks a major milestone in the Qantas Group's fleet renewal programme,... Read More »
Monday December 2, 2024
The EU Commission has approved the concessions made by Deutsche Lufthansa to acquire a stake in ITA Airways
The European Union has approved Lufthansa‘s acquisition of a 41% stake in ITA Airways, subject to key concessions, the Handelsblatt reported. This antitrust approval was granted in July, but only after Deutsche Lufthansa agreed to measures designed to en... Read More »
Friday November 29, 2024
MTU forecasts continued growth and improved earnings for 2025
MTU Aero Engines AG has forecast continued growth and improved earnings for 2025, expecting revenues between €8.3 and €8.5 billion. Adjusted EBIT is projected to rise in the low-to-mid teens percentage range, with adjusted net income expected to grow in li... Read More »
Friday November 29, 2024
Latest views on air cargo market developments
In the final week of November (week 47), global air cargo tonnages remained stable compared to the previous week, while rates continued to rise, reaching the highest levels of 2024. According to WorldACD Market Data, global average rates increased by 2% week-o... Read More »
Friday November 29, 2024
Malaysia Airlines has taken delivery of its first of 20 A330neo aircraft at Airbus’s Delivery Centre in Toulouse © Avolon
Avolon has delivered the first of 20 Airbus A330neo aircraft to Malaysia Aviation Group (MAG), the parent company of Malaysia Airlines. The milestone delivery took place at Airbus' Delivery Centre in Toulouse, with the remaining aircraft scheduled for delivery... Read More »
Friday November 29, 2024
Air Canada will launch the next phase of its digital transformation at YVR airport
Air Canada will launch the next phase of its digital transformation on December 3, introducing digital identification as a boarding option for nearly all domestic flights at Vancouver International Airport (YVR). Building on a successful pilot project, Air Can... Read More »
Friday November 29, 2024
Falko has acquired four Embraer E190 aircraft from NAC, on lease to Royal Air Maroc
Falco has successfully finalised an aircraft portfolio transaction with Nordic Aviation Capital (NAC), acquiring four Embraer E190 aircraft on lease to Moroccan national carrier, Royal Air Maroc. This acquisition concludes the previously announced portfolio de... Read More »
Friday November 29, 2024
Jesus Caballero, CEO at SOF Connect (l) and Sergio Colella, President, Europe (r) at SITA
SOF Connect has entered into a strategic partnership with SITA, the air transport technology company, to revolutionise Sofia Airport's operations through the design and implementation of a state-of-the-art Airport Operations Management System. “This partners... Read More »
Thursday November 28, 2024
Inauguration of BeCover, the new compressor test centre in Herstal, Liège, Belgium
Adrien Dolimont, Minister-President of Wallonia, and Olivier Andriès, CEO of Safran, inaugurated the BeCOVER compressor test centre in Herstal, Liège, Belgium. The state-of-the-art 3,000 m² facility is designed to test advanced compressors for civil and mil... Read More »
Thursday November 28, 2024
Image of National Airlines' A330-200
CDB Aviation, a wholly owned Irish subsidiary of China Development Bank Financial Leasing Co., has completed a sale transaction for two Airbus A330-200 aircraft with National Airlines (National). The Florida-based cargo and passenger charter services operator ... Read More »
AviTrader MRO magazine November 2024

2023 MEDIA KIT

VP Sales & Business Development Americas
Tamar Jorssen
[email protected]
Phone: +1 (778) 213 8543
VP International Sales & Marketing
Malte Tamm
[email protected]
Phone: +49 (0)162 8263049

Subscribe to the most widely accepted news source in the aviation industry!


Free Daily, Weekly and MRO Publications delivered to your Inbox!
News Alerts, Editorials, Marketplace, Executive Interviews +more

Select publications:

*we respect your privacy and AviTrader will not share your email address to any 3rd Parties.