MONTREAL — Canadian aviation giant Bombardier announced Wednesday that it plans to cut about 10% of its workforce as the company undergoes major restructuring through next year.
The company will cut 7,000 jobs from its global workforce of 70,000 — 24,000 of which are in Canada — which “will be partially offset by hiring in certain growth areas,” Bombardier said as it released financial results.
Bombardier also announced it has signed a $3.8 billion deal with Air Canada to buy 45 CS300 jets, with options to purchase another 30 planes. Deliveries of the all-new aircraft will begin in 2019. The company said it posted revenues of $18.2 billion last year, a 9.6% drop from the year before.
“These adjustments are always difficult,” president and CEO Alain Bellemare said. “They are important to ensure that... we continue to create superior value for our customers, be more competitive and deliver improved financial performance.”
Airbus, Boeing Win Billion-Dollar Deals
SINGAPORE — Airbus and Boeing announced big deals Wednesday at the largest airshow in Asia, underscoring the region’s role as a driver of industry growth despite greater caution among plane buyers.
Airbus said it had won an $1.85 billion deal for the purchase of six A350-900s by Philippine Airlines, the flag carrier of one of Asia’s faster-growing economies. Boeing, meanwhile, said it had won a commitment from China’s Okay Airways to buy 12 aircraft for $1.3 billion despite a weakening Chinese economy.
Tony Tyler, director-general of the International Air Transport Association, said ahead of the Singapore show that airlines in the region may try to push back their orders due to softer profits. Airline savings from low fuel costs are being eroded by hedging losses and a strong dollar, Tyler said, noting that the greenback climbed 20% over the past 18 months.
With Asia-Pacific accounting for 40% of global air cargo, regional carriers have been badly hit by the global economic slowdown, worsening the impact of competition from Gulf carriers, the IATA chief added.
Copyright Agence France-Presse, 2016