Bombardier’s Costly Jet Delays
CBJ – Delays on delivery and cost overruns with Bombardier’s CSeries jet is now affecting important investors in the company, some of whom are opting out.
In the past seven years there have been serious delays with two of Bombardier’s jet programs. During that time the company has lost two senior aerospace sales executives and missed profit targets.
Two years of delays and cost overruns on the $4.4 billion CSeries jet have tainted Bombardier’s reputation for execution. The Montreal-based enterprise took another hit last month after saying it would miss profit goals and halt development of the Learjet 85 business jet. There have been rumours that Bombardier may have to borrow more money to provide liquidity, although there has been no statement on the matter from any executive with the company, including CEO Pierre Beaudoin, who often touts his company’s excellent execution.
Beaudoin’s father Laurent is Bombardier’s chairman after running the business for four decades. He is also the grandson of the company’s founder Joseph-Armand Bombardier, who created the corporation in 1942.