The most famous name in the business jet world – Learjet – has taken a near-fatal body blow. Bombardier, owner of the iconic brand, is to end production at the end of this year.
The fate of Learjet was announced as Bombardier issued its 2020 financial results. The Canadian company is struggling with a huge $10 billion debt pile even after selling off its CRJ airliner manufacturing business to Airbus, its train business to Alstom, its Q series airliner business to the newly formed De Havilland Aircraft of Canada (formerly Longview) and its regional jet programme to Mitsubishi.
That leaves Bombardier with the Global and Challenger business jet manufacturing brands which, fortunately, are doing well.
The reports reveals that 2020 revenues from Business Aircraft activities reached $5.6 billion, growing 3% year-over-year on 114 deliveries, 44 of which were in the fourth quarter, including a record 16 Global 7500 aircraft deliveries.
“With our strategic repositioning now complete, we are very excited to embark on our journey as a pure-play business jet company,” said Éric Martel, President and Chief Executive Officer, Bombardier Inc.
However, there’s still work to be done and Bombardier’s report makes it clear that “the goal is to make the organization more efficient and agile, capable of delivering stronger financial performance under the current market conditions, while also establishing a lower cost base to grow from, once the market recovers.”
This includes:
- Consolidating Bombardier’s Global aircraft completion work in Montréal
- Reviewing options for underutilised hangar and industrial space at its Québec facility
- Reducing its overall workforce by approximately 1,600.
“Workforce reductions are always very difficult, and we regret seeing talented and dedicated employees leave the company for any reason,” said Martel. “But these reductions are absolutely necessary for us to rebuild our company while we continue to navigate through the pandemic.”
The decision to end Learjet production after delivering more than 3,000 aircraft since Bill Lear started the company in 1963 was “difficult”.
However, Bombardier will continue to support the Learjet fleet well into the future, and it has launched the Learjet RACER remanufacturing programme for Learjet 40 and Learjet 45 aircraft.
The RACER programme includes a bundled set of enhancements, including interior and exterior components, new avionics, high-speed connectivity, engine enhancements, and improved aircraft maintenance costs. The RACER remanufacturing program will be offered exclusively through Bombardier’s service centre in Wichita, Kansas.
Bombardier’s Wichita facility will continue to serve as the Company’s primary flight-test centre and be a key part of its global services network. In addition, Bombardier has designated Wichita as the Centre of Excellence for its specialized aircraft business and expects the facility will play a leading role in future special mission modification contracts.
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