in Business & Finance

GlobalData: Bombardier distances itself from commercial aviation with valid reasons

Posted 12 June 2020 · Add Comment

Following the news that Bombardier is planning to cut 600 jobs at its Belfast facility manufacturing A220 wings. Nicolas Jouan, Aerospace and Defence Analyst at GlobalData offers his view on Bombardier’s decision.

 

“Bombardier’s move to cut up to 2,500 jobs in its aviation business, of which 600 are based in Belfast, must be understood in the context of the COVID-19 crisis and more fundamental transformations wanted by the company. Even before the pandemic wiped out air travel, and as a consequence eroded the need for commercial jetliners, Bombardier was engaged in divestments to reduce its exposure to aviation with the sale of its regional jet C-Series to Airbus in 2018 and its CRJ program to Mitsubishi in 2019. Considering that airlines and leasing companies accumulate cancellations and postponements of orders, Bombardier seem decided to accelerate its strategy in order to avoid overcapacity.

 

“The former C-Series, rebranded A220, is at the heart of the decision. Airbus decided earlier this year to postpone the planned production increase of the regional jet in spite of relatively good sales figures. The European plane maker still intends to reach an eventual production rate of ten platforms per month, compared to four at the moment, but not before 2026. Bombardier still produces wings for the A220 in its Belfast facility in Northern Ireland, but there is little point in maintaining production rate when the final integrator Airbus seems itself on the back foot.

 

“Regional aircrafts are not favoured by plane makers at the moment. Mitsubishi has shelved its SpaceJet program that was supposed to take off this year. Boeing has withdrawn from a partnership with Embraer on commercial aviation. It is hard to foresee how post-COVID-19 commercial aviation will look like, but anticipated social distancing safety regulations might not be well fitted to the costly, high-density cabins of regional jets. Bombardier’s decision to cut 600 positions in Belfast is both based on the reality of demand, adapted to Airbus’ decision, and on a more fundamental strategy regarding the future of regional jets.”

 

Other Stories
Advertisement
Latest News

TATV - Newsround Feb 4: Bahrain's boost, Nigeria's plans and Dubai's training magic

The first TATV Newsround programme brings an overview of the main talking points in the news from the aviation, defence and aerospace industry in the emerging markets of the Middle East, Africa and South Asia.

Kenya Airways launches economy max seat-blocker

Kenya Airways has unveiled, Economy Max, a product that allows customers to create additional personal space by booking a seat or a row next to them.

Embraer’s Phenom 300 becomes world’s best-selling light jet

For the ninth consecutive year, Embraer’s Phenom 300 series has become the world’s best-selling light jet according to numbers released today by the General Aviation Manufacturers Association (GAMA).

Time for Africa to repair its safety standards...

Safety issues, many tied to MRO, have long plagued African aviation. Could this now be changing across the continent?

Covid-19 changes the IT spending priorities for airports and airlines

The COVID-19 pandemic has refocused IT spending priorities for airlines and airports in 2020 as revenue plunged and the industry faced new health and operational requirements needed to keep flying, according to SITA.

Travelport rebrands and reveals new identity

Worldwide travel retail platform Travelport, which operates in Africa, has launched a new visual identity, which has been created as part of the company’s first ever end-to-end rebrand.

WDS SK2601090322
See us at
Aviation Africa 2021 BTNNAviation MENA 2021DAS21_BTWDS BT1202090322