Canada

Bombardier plans to axe 10% of its global workforce as it restructures this year.

This will lead to 7,000 job cuts, which will be ‘partially offset by hiring in certain growth areas’ such as its commercial aircraft division.

Bombardier president Alain Bellemare was quoted by AFP saying: "Throughout 2016 and 2017, we will adapt our global manpower to current market conditions, while hiring to support growing segments such as the C series.

"We are taking this difficult decision to make Bombardier stronger."

Most of the job cuts will be from Canadian and European operations. Following the cuts, Bombardier will have 64,000 employees across its global operations.

Bombardier saw its revenues drop 9.6% to $18.2bn in 2015 from the previous year.

The company signed a deal with Air Canada to sell 45 CS300 aircraft with options for another 30 CS300 aircraft, which also covers conversion rights to CS100 aircraft.

"Throughout 2016 and 2017, we will adapt our global manpower to current market conditions, while hiring to support growing segments such as the C series."

The firm order for 45 CS300 is valued at $3.8bn on list price, with deliveries expected to start in late 2019 through to 2022.

With the order, Air Canada plans to renew its narrow body fleet. The first 25 planes on delivery will replace the carrier’s existing mainline fleet of Embraer E190 aircraft.

Air Canada president Calin Rovinescu said: "We have been carefully assessing the capabilities of Bombardier’s C Series aircraft and its progress for some time and today we are very pleased to announce an agreement to acquire the CS300 for our mainline fleet.

"The C series will be a key element of our ongoing fleet renewal, which will result in Air Canada operating one of the world’s youngest and most fuel efficient airline fleets.

"With its optimal mainline performance range, superior economics, and greater seating capacity, the Canadian-built CS300 aircraft will allow us to compete more effectively, providing increased point-to-point service to domestic and transborder markets further afield, as well as feeding our network."

The deal is subject to completion of final documentation and satisfaction of other closing conditions.

Bellemare added: "Our recent focus has been to add a large North American international network carrier to complement our orders in both Europe and Asia, and with Air Canada we are achieving our goal of creating a strong global footprint for the C series aircraft."

Image: Bombardier CS300 aircraft. Photo: courtesy of Bombardier.