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.
Bombardier (BDRAF.PK) agrees to sell its fractional jet ownership division, Flexjet, to a group of investors led by Directional Aviation Capital, a Cleveland-based private equity firm, for around $185M.
The transaction would create a new entity, Flexjet LLC, that will be run by current management.
The new company has also agreed to place an order for up to 245 Bombardier business jets, including a firm orders for 20 of its Challenger 350s, 30 Learjet 85s, and 10 Challenger 650s.
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.
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)
Farnborough: SkyWest (SKYW -1.3%) agrees to buy 100 regional jets from Mitsubishi Aircraft in a deal worth $4B at list prices, with deliveries to begin in 2017. The agreement is a boost to United Tech's (UTX) Pratt & Whitney, which will supply the engines, but a blow to Bombardier.
Dealmaking will probably be less frenetic at this week's Farnborough Airshow than in previous years and at Paris in 2011. The eurozone recession, the looming automatic defense cuts in the U.S., and falling airline profits are among the reasons, as is the recent airline buying spree, which has caused a major backlog at the big plane makers.
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.
Delta (DAL) defers an order for 100 jets until 2012, leaving Brazil's Embraer and Bombardier (BDRAF.PK) scrambling. The carrier advanced talks on the purchase of the small-body planes as it negotiated with Boeing (BA) over a blockbuster $8.6B deal.
Bombardier (BDRAF.PK) inks a deal to sell up to 120 aircraft to Berkshire's (BRK.A) NetJets and could earn more than $6.7B. This is Bombardier's largest business aircraft sale, and highlights the gradual return of businesses to private planes.
China considers the creation of the world's largest rail equipment company through the merger of CNR and CSR. It's not a done deal as the companies themselves are opposed to the move, but the new entity would tower over competitors Bombardier (BDRAF.PK), Alstom (AOMFF.PK), and Siemens (SI).