Bombardier (BDRAF -2.4%) plans to lay off 1.7k employees in its aerospace division, or ~6% of the unit's headcount, as the plane maker aims to preserve cash in the context of aircraft delays and tepid demand, The Starreports.
Bombardier (BDRAF -4.9%) has delayed the delivery of its first new CSeries aircraft by ~6 months, with the CS100 now expected to enter service in 2H 2015. The larger CS300 is expected 6 months after.
Prior to the announcement, the airplane maker said it had received a firm order for 16 new CS300 jets from SaudiGulf Airlines - the deal would be valued at $1.21B at list prices. The value could increase to $1.99B if the airline exercises options to acquire another 10 CSeries.
The newest deal brings Bombardier's firm order count to 198 CSeries planes, with options for nearly 250 more. The company is aiming for 300 firm orders before the aircraft enters service.
AECOM Technology (ACM), Siemens (SI) and Bechtel are part of a consortium that has won a $9.45B project to build two lines for a metro-system in Riyadh. Bechtel heads the group.
In total, Saudi Arabia has handed out three contracts worth a total of $22.5B to construct six lines.
The other winning consortia are: one that includes Spain's Fomento de Construcciones y Contratas, France's Alstom (AOMFF.PK) and South Korea's Samsung C&T Corp. (SSGFF.PK); and another that includes Italy's Ansaldo STS (ASDOF.PK), Canada's Bombardier (BDRAF.PK) and India's Larsen & Toubro (LTORY.OB).
Design work is to start immediately, with construction set to begin in Q1 next year. The project is due for completion in 2019.
Bombardier's (BDRBF.PK) C-series jet, its first challenge in the narrowbody commercial jetliner market to Boeing (BA) and Airbus (EADSY.PK), received a firm order for 32 of the larger CS300 and options for 10 CS100 aircraft from Ilyushin Finance of Russia, bringing the order book to 177 with the aircraft's first flight due this month. Deliveries are set to begin next year.
Delta Airlines (DAL) chooses Bombardier (BDRAF.PK) over Embraer (ERJ -5.3%) and orders 40 CRJ900 NextGen regional jets from the Canadian company, and takes an option to acquire another 30 in a deal that could be worth up to $3.29B. The initial value is $1.85B. The booking adds to orders worth billions of dollars that Bombardier received from Berkshire Hathaway's NetJets and VistaJet.
Bombardier (BDRAF.PK) receives what could turn out to be its largest-ever booking after luxury air-charter specialist VistaJet orders 56 of the Canadian company's Global-series business jets and takes options for 86 more. The initial value of the deal is $3.1B, a figure that could rise to $7.8B. The agreement highlights how orders for corporate jets are recovering following a four-year slump.
Honeywell (HON) gets upbeat about the corporate jet market, predicting that the number delivered will rise 9% globally this year and next, and will reach $250B worth by 2022. Honeywell's Rob Wilson even predicts a decoupling of U.S. corporate results and jet sales as demand grows in Asia and Latin America. In addition to Honeywell, those that should benefit include GD's (GD) Gulfstream, Textron's (TXT) Cessna, Bombardier and Embraer (ERJ). (PR)
Berkshire Hathaway's (BRK.A, BRK.B) NetJets places $9.6B in purchase orders with Bombardier (BDRAF.PK, BDRBF.PK) and Cessna (TXT) for 425 new aircraft, in a deal NetJets calls the largest private aviation order in history. NetJets CEO Jordan Hansell is betting on a rebound in luxury flights after predecessor David Sokol cut the size of the fleet to cope with lower demand.
Bombardier (BDRAF.PK +0.3%) says it's cutting production of its CRJ aircraft as of January due to slackening demand. The decision is part of the company's pre-announced plan to streamline its production over the next three months. It doesn't expect any job cuts, noting employees will be transfered to other current and in-development aircraft projects.