Bombardier shares continue to plumb 20-year depths
Fear of decline in market for business jets fuels further sell-off
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MONTREAL—Bombardier shares were already trading at the same level they were in the early ’90s when they were sent tumbling again July 22. According to Bloomberg, the sell-off was triggered by comments made by an executive at one of the company’s parts suppliers, B/E Aerospace.
Shares dropped as low as $1.63 in early trading July 22, but recovered to $1.69 by the time Wednesday’s trading was complete, still down 5.6 per cent.
The Bombardier supplier noted the market for large-cabin private planes has come under pressure, Bloomberg reported.
The news follows reports of further trouble at Bombardier’s business jet business. Earlier this month, it was revealed the company is reviewing all aspects of its ultra long-range Global 7000 and 8000 business jet programs. Concern quickly grew among investors that significant delays, such as those seen with its CSeries aircraft could emerge.