Bombardier increases revenues, sells Downsview facility

Global 7000 C-GLBR touches down after its first flight (Photo: Frederick K. Larkin)

Revenues at Bombardier Business Aircraft saw a 9% year-on-year increase in the first quarter of 2018.
The company attributed the rise to an increase in aftermarket activities, delivery of 32 aircraft, and an increase in aircraft sales.

By the end of the first quarter the manufacturer’s backlog of aircraft that have been ordered but that have yet to be delivered, rose to $14.3 billion.

During the quarter Bombardier sold its Toronto Downsview facility to Canada’s Public Sector Pension Investment Board for just over $550 million.

Downsview is where Bombardier has been building its Global family of aircraft, as well as CRJ family of commercial regional jets. The company will replace Downsview by creating a Global family Centre of Excellence at the nearby Toronto-Pearson International Airport.

Speaking about the results, Bombardier Inc’s president & CEO Alain Bellemare says that the company is now halfway through its turnaround plan. This comes after financial difficulties in 2016 when the Quebec government had to bail out Bombardier to the tune of $1 billion. Under the terms of that agreement, Quebec took a 45% stake in Bombardier’s C Series commercial airliner, including its assets, liabilities and obligations.

A year later Bombardier entered into a partnership with Airbus, which saw the European airframer take a 50.01% majority stake in the C Series. Bombardier retained a 31% share, with the remaining stake held by the Quebec governments investment fund.

“We continue to deliver on our financial commitments and make solid progress executing our growth programs and strategic initiatives,” said Bellemare “We’ve successfully reached the halfway point of our turnaround plan with a strengthened balance sheet and a clear focus on execution and growth.”