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Bombardier hopes US stock market boom means more business jet sales
CANADA's big plane and train maker Bombardier expects private jet sales to rebound in the second half as the US economy revives, reports Bloomberg.
"We are confident that we are at the bottom or close to the bottom. Moving forward, it should be better," said Bombardier CEO Alain Bellemare. "I don't know if it's going to be the second half of 2017 or 2018."
Low demand for business jets has dragged down the Montreal company as Mr Bellemare increased efforts to recover from years of annual losses with shares falling to a 26-year lows.
Mr Bellemare announced 14,500 job cuts to overcome cost overruns and a delay of more than two years in developing the C Series jetliner.
"Business jet demand should benefit from the post-election stock surge and shift away from Obama's anti-bizjet rhetoric," said Cowen & Co analyst Cai von Rumohr said in a note to clients.
Revenues fell 13 per cent to US$4.38 billion and the company expects to deliver 135 private aircraft this year, down 16.5 per cent from the $5.7 billion in sales last year.
But Mr Bellemare expressed high hopes for the company's biggest-ever corporate plane - the Global 7000, which made its first flight in November. Flight tests are proceeding on schedule, and the jet should enter service in late 2018 as planned, he said.
"We are confident that we are at the bottom or close to the bottom. Moving forward, it should be better," said Bombardier CEO Alain Bellemare. "I don't know if it's going to be the second half of 2017 or 2018."
Low demand for business jets has dragged down the Montreal company as Mr Bellemare increased efforts to recover from years of annual losses with shares falling to a 26-year lows.
Mr Bellemare announced 14,500 job cuts to overcome cost overruns and a delay of more than two years in developing the C Series jetliner.
"Business jet demand should benefit from the post-election stock surge and shift away from Obama's anti-bizjet rhetoric," said Cowen & Co analyst Cai von Rumohr said in a note to clients.
Revenues fell 13 per cent to US$4.38 billion and the company expects to deliver 135 private aircraft this year, down 16.5 per cent from the $5.7 billion in sales last year.
But Mr Bellemare expressed high hopes for the company's biggest-ever corporate plane - the Global 7000, which made its first flight in November. Flight tests are proceeding on schedule, and the jet should enter service in late 2018 as planned, he said.
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