National Post (National Edition)
Bombardier to transfer U.S. Learjet workers
Bombardier Inc. is planning to transfer some workers from its Learjet production line to other parts of the operation and isn’t ruling out the possibility of layoffs amid anemic sales for the light business jet.
Company spokesman Mark Masluch wouldn’t disclose how many workers will be affected, but said the goal is to avoid layoffs by transferring as many as possible to other operations in Wichita, Kan., where the current family of Learjet 70/75 is built. Bombardier also has a business-aircraft service centre and a flight-test facility in Wichita.
“We’re really going to exhaust all the opportunities for transfers before we communicate or confirm any numbers,” Masluch said. “It’s about matching skill sets and executing the transfers, so we’re going to let that exercise happen before we confirm numbers.”
He added that Bombardier is “working to mitigate” layoffs.
“If there are (layoffs), it would be limited and our goal would be to call them back as soon as possible if transfer opportunities arise,” he said.
Sales of Bombardier’s Learjet, which seats seven to nine passengers and has a range of approximately 3,800 kilometres, have taken a blow from the global economy as well as an increasingly competitive market.
Demand for all business jets has slowed due to economic weakness in China, Russia, Latin America and the Middle East, and the low end of the market — which includes the Learjet — has been hit particularly hard.
In addition, Bombardier has lost some market share to competitors such as Textron Inc., which makes the Cessna; Dassault Aviation SA, which builds the Falcon jet; and Embraer SA, which makes the Legacy jet.
In the first half of this year, Bombardier sold just six Learjets, down from 14 a year earlier. It also recently cancelled plans to develop a new Learjet 85, citing a market that never really rebounded from the 2008-09 recession.
Bombardier CEO Alain Bellemare said earlier this month that the light business jet market is “oversupplied” and the company is monitoring Learjet’s position in it.
This led to speculation that the company will try to sell Learjet to rid itself of a weak business division and use the proceeds to help pay down debt. Textron, which also builds the Cessna in Wichita, is thought to be the most likely buyer and has said it would be interested in Learjet “at the right price.”
In the meantime, Masluch stressed that the company is still hawking the Learjet as a competitive offering. “We’re still working very aggressively to sell this aircraft in a price-sensitive marketplace … and we’re being very careful and prudent about how we do that,” he said.