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10 December 2018 by Graham Warwick, Aviation Week
Bombardier expects its commercial aircraft unit to become profitable in 2020 relying solely on CRJ production after the sale of the Q400 program next year.
Revenue at Bombardier Commercial Aircraft will continue to shrink in 2019, to a forecast $1.4 billion, the manufacturer said Dec. 6 in its 2019 business unit guidance, down from $1.7 billion in earlier guidance.
The losses are expected to halve, however, to around $125 million—including the company’s share of Airbus A220 program (formerly the CSeries) losses—as it cuts jobs to reduce overhead. Deliveries next year are expected to remain flat at 35 CRJs and Q400s.
Bombardier did not give a delivery forecast for 2020 but expects Commercial Aircraft to be profitable, producing only the CRJ regional jet after the transfer of the CSeries program to Airbus this year and the sale of the Q400 program to Canada’s Longview Aviation Capital in 2019.
The company sees demand for 3,000 large regional jets over the next 20 years and “the CRJ900 is one of only two scope-compliant regional jets and perfectly placed for the retirement cycle,” Commercial Aircraft president Fred Cromer said.
Now Bombardier’s third-largest sector after rail transportation and business aircraft, Bombardier Aerostructures & Engineering Services is forecast to reach revenue exceeding $2.25 billion in 2020, up from $2 billion in 2018, according to the guidance.
More significantly, with the A220 program now an outside customer, Bombardier’s share of external work is expected to increase from 40% in 2018 to 60% in the next three to four years, Aerospace & Engineering Services president Danny Di Perna said.
A new engine nacelle for the A320neo—work awarded to Bombardier’s Belfast, Northern Ireland, site by Airbus in 2017—will enter production in 2021 and quickly reach a “steady, high rate,” he said, adding the division is pursuing several opportunities on missionized aircraft and nacelle systems.
Graham Warwick, Graham.warwick@aviationweek.com