"Bombardier Inc. has scrapped plans to start producing a new intercontinental jet aircraft, blaming poor market conditions on its decision to shelve the $2.1-billion-US CSeries project.
The Montreal-based company said Tuesday it will shift resources from development of the CSeries to regional jet and turboprop aircraft to service future needs in the 80- to 100-seat aircraft market.
``This is the correct business decision, given today's market dynamics,'' Pierre Beaudoin, president and chief operating officer of Bombardier Aerospace, said in a release.
``Our realignment decision is based on two years of extensive research, development and evaluation. We will now concurrently continue to explore the CSeries' potential as well as pursue opportunities in the regional aircraft market.''
The jet series, under development with support from the Canadian, Quebec and British governments, looked to produce two models seating between 110 and 130 passengers.
Bombardier, which had only the day before denied a report it was cancelling the CSeries, said a small team of employees will continue to develop the program's business plan and will consider including other partners in the project.
Most of the employees working on the CSeries will be redirected to development of smaller regional aircraft.
``We will now concurrently continue to explore the CSeries' potential as well as pursue opportunities in the regional aircraft market,'' Beaudoin said.
``Our commitment to the upper end of the regional aircraft market and the lower end of the mainline market remains strong and we expect to fully exploit opportunities in these two markets in the future.''
The planned launch of the CSeries was been put off several times, as Bombardier failed to come up with the required 50 to 100 orders required to launch production, planned for a factory in Mirabel north of Montreal.
Bombardier, the world's third-largest maker of civil commercial aircraft, faces a declining market for its 50-seat regional jet and is widely viewed as needing to refresh its 70- and 90-seat lineup of planes with new products.
Shares in Bombardier fell nine cents, or three per cent, to $2.89 in early trading on the Toronto Stock Exchange."
Source CJAD.com
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