Bombardier shares plummet as company reviews business jet program
Company valued at lowest level since early '90s as aviation woes continue
Aviation International News as well as Bloomberg News have reported that with the addition of new leadership to the company – most notably Alain Bellemare, who took the helm as CEO earlier this year – the company will be reviewing all aspects of the program, including its schedule. The company has not publicly elaborated on the statement, but shareholders, who aren’t strangers to schedule changes in the wake of significant delays to the company’s CSeries program, were not receptive to the news.
Bombardier shares closed at $2.00 Thursday, their lowest level in more than 20 years.
The company’s Global 7000 is scheduled to enter into service in 2016, with the Global 8000 following in 2017. The latest reports have raised questions about that timeline.
The two ultra long-range jets are designed for business and VIP travelers. The company touts them as having unparalleled living space, greener technologies and uncompromising vision.
Though Bombardier’s Transportation division has continued to secure numerous contracts worldwide, the company’s aerospace division has been only sparingly successful in 2015. Most significantly the company’s premiere of its CSeries aircraft at the Paris Air Show last month failed to generate further orders. Though Bombardier played down concerns, shareholders seem to be harbouring significant fears over the company’s future.
Bombardier shares are down 52 per cent since the beginning of 2015.