16 minutes ago Canada to lose 2830 jobs as Bombardier slashes workforce

“We greatly regret the effect this will have on our work force as well as their loved ones, but it’s essential that individuals right-size our company consistent with marketplace realities”, a spokeswoman said.

The Air Canada order doesn’t carry as much weight as a deal with United or Delta Air Lines because Air Canada “is the hometown airline”, Arvai said.

The Canadian airline’s order brings the total to 288 firm orders. The drastic stock market decline saw the company propose a reverse stock split earlier this week that would reportedly consolidate its shares to hedge against losses. The Montreal-based plane maker also said it will cut about 7,000 jobs over the next two years. 2,830 jobs will be cut in Montreal and another 2,400 in Quebec.

Bombardier Commercial Aircraft delivered 76 CRJs and Q400s in 2015, slightly down from a forecast of around 80, but plans to hand over 95 in 2016 including CSeries. Air Canada has signed a letter of intent to buy 45 of the jets, with options for another 30 aircraft. Bombardier has said the C Series, which features the new geared turbofan engine from United Technologies Corp.’s Pratt & Whitney unit, will cost about 15 percent less to operate, cut fuel burn by about 20 percent and produce less noise.

She added that Bombardier hoped “they will bounce back and they will continue to grow and we will continue to support them”.

Air Canada may have had another enticement to sign on.

Garneau said the federal government did not pressure Air Canada to buy the planes.

“The quid pro quo is that we would agree to maintain the C Series airframe heavy maintenance in the province of Quebec”, Rovinescu said on a conference call.

CA$55.55 is the amount that every income tax-paying Canadian will contribute to Bombardier, Inc. Even with the rally Wednesday, the stock is down 57 percent over the past 12 months. But the project has been given a big if at times blunt boost by the Air Canada order, possibly enough to keep it alive as a potential replacement in the 2020s for the Boeing 717s and Fokker F100s in widespread regional and resource industry use in Australia today.

“Contracts for train building are still being shipped overseas, risking the very future of train building in the nation that gave the railways to the world”. Other factors include the status of the rest of Air Canada’s fleet and the impact the new planes would have on costs per available seat mile, a key measure of airline performance.

Based on the list price of the CS300, Bombardier said that a firm order would be worth about $3.8 billion. Last week, Stefanie Power, a spokeswoman for the Federal Innovation, Science, and Economic Development Department, told The Globe and Mail that “there has to be a strong business case for making a federal investment”.

Karl Moore, an aviation expert and professor at McGill University’s Desautels Faculty of Management, said the sale is an indication that the company is on a better path after years of losses.

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