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Bombardier Cuts 7,500 Jobs For "Restructuring"  
User currently offlineMartinairYYZ From Canada, joined Nov 2003, 1209 posts, RR: 5
Posted (12 years 2 months 1 week 2 days 10 hours ago) and read 3818 times:

For a giant like Bombardier, it’s the opposite of a death by a thousand cuts. The Montreal-based manufacturing giant is trying to stay alive, by chopping 6,600 jobs in Europe and almost 700 more here in Canada.

Bombardier’s C.E.O. headed to Toronto Wednesday, to explain his firm simply had no choice. “Let's face it. This is a must,” insists Paul Tellier. “We just cannot go on with the number of facilities that we have.”

He insists the move is a long time in coming and shouldn’t really surprise anyone. “I'm very much aware these are painful decision to take, closing down seven plants, but our responsibility to our stakeholders is to make sure that this group remains viable on a long term basis.”

But it appears the moves may not help the company’s beleaguered bottom line. Both Fitch and Standard and Poor's lowered their ratings on Bombardier, citing uncertainty in the aerospace industry, as well as cost-cutting in the company's rail unit.

Bombardier Cuts

Cuts in Canada: The rail division's operations in Kingston and Thunder Bay, Ontario, and head office in Quebec, will lose 680 positions.

About 170 jobs will also be cut in the United States. Bombardier has already stopped or suspended operations in Kingston, Burnaby, B.C., Barre, Vermont, and Pittsburg, California to reduce inventory.

In Europe: Plants slated to close this year are in Amadora, Portugal; and Doncaster and Derby Pride Park in the United Kingdom. Plants to close next year are in Pratteln, Switzerland; Ammendorf, Germany; Kalmar, Sweden; and Wakefield in the United Kingdom.

Savings: Restructuring will save about $600 million a year but led to one-time charges that contributed to a $448 million fourth-quarter loss.

Quote: “This restructuring initiative is part of a three-year strategy to bring back improved margins and profitability to this company.”
Bombardier C-E-O Paul Tellier.

This isn't very good for the jobs and economies for Canada, UK, Portugal, Germany etc.... but will it help Bombardier in the future?

Maybe if CYTZ did expand, Bombardier would be okay becuase it would form 4,000 more jobs but Mr. Stupidity Miller claimed it would wreck the lakeshore. There's already toxic wastes and 5-eyed Chinese pike in the lake! Open your eyes!

Give your opinion here

Chelsea Football Club supporter.
7 replies: All unread, jump to last
User currently offlinePlanemaker From Tuvalu, joined Aug 2003, 7210 posts, RR: 37
Reply 1, posted (12 years 2 months 1 week 2 days 8 hours ago) and read 3757 times:

Maybe if CYTZ did expand, Bombardier would be okay becuase it would form 4,000 more jobs...

Actually, it would not have. At its peak DH had just over 5,500 workers and that was when the entire Dash 8 line was selling, plus the GX was in full swing, and the Lear 45 wing was still being made at Downsview. So, as you can appreciate, an order for only 20 Q400's, where only the wings and cockpits are manufactured at DH (the entire fuselage is made by MHI in Japan), would not have required 4,000 workers.

Much more troubling to Bombardier Aerospace is that:

- Air Canada has changed some of the CRJ705 orders for more Embraers;

- BBD year-on-year 4th QTR regional jet orders fell from 80 to 65 aircraft, with a year-over-year reduction in the total backlog. CRJ700 and CRJ900 deliveries were the most significantly hit.

- Close to 30% of the CRJ backlog are for struggling US Airways. And if you add Air Canada (Chap. 11 & with Trinity threatening to walk) orders to US Airways, that is almost 45% of the backlog.

- CRJ700 reliability is running at only 97.5% and launch customer Brit Air (10 in service) has delayed delivery of any more CRJ700's pending improvement in reliability. The reliability of the Brittany-based airline's CRJ700 fleet is such that two aircraft, rather than one, have to be held on back-up duty each day.

- Cologne-based Lufthansa CityLine, which operates 20 CRJ700s, is also pushing Bombardier to help it improve reliability, which is "around 98%", and the daily utilisation, which is 2h short of the 10h target. LH says that the 700 need to have the same reliability as Airbus and Boeing aircraft: 99.5-99.8%. CityLine managing director Karl-Heinz Kopfle is disappointed with the support Bombardier provides in Europe. "We can wait one, two or three days for spares or special tooling to fix a problem," he says. (Flight International);

- BBD has effectively abandoned the 86-108 seat market to Embraer.

[Edited 2004-03-18 17:34:59]

Nationalism is an infantile disease. It is the measles of mankind. - A. Einstein
User currently offlineRJ100 From Switzerland, joined Nov 2000, 4138 posts, RR: 26
Reply 2, posted (12 years 2 months 1 week 2 days 3 hours ago) and read 3678 times:


They also intend to close the plant in Pratteln, Switzerland (near Basel).
One of my best friend's father is working there and will lose his job like many others.  Sad

The local government is now looking for new investors and for other companies that will set up in these facilities.

Strange thing is that the Pratteln plant is working 100% at the moment and is earning lots of money but will run out of work in 2005.


User currently offlineFLYYUL From Italy, joined Jun 2000, 5038 posts, RR: 50
Reply 3, posted (12 years 2 months 1 week 2 days 3 hours ago) and read 3656 times:

Its all speculation that is going to convert their CRJ-705's.

User currently offlinePlanemaker From Tuvalu, joined Aug 2003, 7210 posts, RR: 37
Reply 4, posted (12 years 2 months 1 week 2 days 3 hours ago) and read 3630 times:

Bombardier to see jet order shrink
Memo says Air Canada turns to Embraer

UPDATED AT 4:55 PM EST Wednesday, Mar. 10, 2004

According to a March 5 memorandum to mainline pilots from their union, the Air Canada Pilots Association (ACPA), the airline now plans to order just 15 of the Bombardier CRJ-705s, which will be placed with its regional unit, Air Canada Jazz.

The order for 15 other CRJ-705s, which were to be placed with the mainline service, "will be changed to Embraer 170s or 175s," the ACPA memo says.

The Globe and Mail obtained a copy of the memo, which outlines a confidential tentative agreement reached last Thursday evening by Air Canada, Jazz, ACPA and the Airline Pilots Association, which represents Jazz pilots, in a dispute over how the new aircraft will be allocated between the mainline and regional services. The negotiations were mediated by Toronto lawyer Martin Teplitsky.

Bombardier and its Brazilian rival are locked in a fierce battle for market share, and the December order was the first Embraer has won from Air Canada. Bombardier chief executive officer Paul Tellier has been campaigning for more government financial support.

Quebec labour group takes aim at Air Canada
Globe&Mail: Friday, March 12, 2004 12:00 AM Page SA)">B4

The Quebec Federation of Labour wants Ottawa to block Air Canada from slashing its order for new Bombardier Inc. regional jets. QFL president Henri Masse said the organization is not prepared to let Air Canada ''play Russian roulette with tens of thousands of jobs at Bombardier and in the Canadian and Quebec aeronautical industry'' by switching some of the order to Embraer SA of Brazil.

Nationalism is an infantile disease. It is the measles of mankind. - A. Einstein
User currently offlineLMP737 From United States of America, joined May 2002, 5065 posts, RR: 16
Reply 5, posted (12 years 2 months 1 week 2 days 2 hours ago) and read 3593 times:

Five years ago I almost took a job with Bombardier. Sort of glad I didn't do that now. Wonder if Bombardier's situation would be better if they had launched a competitor to the EMB170.

Never take financial advice from co-workers.
User currently offlineChallengerDan From Canada, joined Sep 2003, 173 posts, RR: 0
Reply 6, posted (12 years 2 months 1 week 1 day 16 hours ago) and read 3495 times:

there is a competitor......... the CRJ700/705/900, altough it falls short capacity wise of the larger E190/195. Technicaly, Embraer's pruduct seem to have the upper hand in that segment, altough it would be wise to see how the aircraft is actually going to perform in service first.

if your flight goes MX in YUL, I might be called to fix it!
User currently offlineBeechcraft From Germany, joined Nov 2003, 828 posts, RR: 34
Reply 7, posted (12 years 2 months 1 week 1 day 15 hours ago) and read 3482 times:

"...CityLine managing director Karl-Heinz Kopfle is disappointed with the support Bombardier provides in Europe....."

He is sooo right. Their after sales service really sucks. if they have one after all. basically it gives pilots, technicians and the management a real headache these days.  Angry
They are are in desperate need of some restructuring!
I heard of something like Caterpillar will do some of their logistics, by the way.

best regards,

That's it! You people have stood in my way long enough. I'm going to clown college!
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