Canadian aerospace manufacturer Bomber (OTC: BDRAF) (OTC: BDRBF) said Thursday it would abandon its classic Learjet brand as part of its continued efforts to increase profitability.
Bombardier is streamlining its business aircraft operations and intends to focus on its Challenger and Global brands, which it says are more profitable. The company is shutting down Learjet as part of a larger campaign to cut annual costs by $ 400 million, including downsizing 1,600 jobs, by 2023.
“With more than 3,000 aircraft delivered since it entered service in 1963, the iconic Learjet aircraft has had a remarkable and lasting impact on business aviation,” CEO Eric Martel said in a statement. “However, given the increasingly difficult market dynamics, we have made the difficult decision to discontinue production of Learjet.”
Business jet sales never fully recovered from the 2008-2009 recession, and the global pandemic further delayed the expected rebound in activity. With the aging of corporate fleets, there should be opportunities for Bombardier, as well as for its competitors. General dynamics (NYSE: GD) and Textron (NYSE: TXT), to boost sales in the years to come. But given the competition in the market, all three did what they could to reduce costs and improve efficiency.
Learjet’s announcement comes as Bombardier reported a loss of $ 0.01 per share in the fourth quarter. For the year, Bombardier delivered 114 business jets, including 44 in the fourth quarter.
Bombardier has divested itself of assets in recent years in an attempt to reduce its debt and improve its profitability. He sold his CSeries aircraft program To Airbus in 2018, and last year unloaded its aerostructures unit To Spirit AeroSystems and sold its rail division to Alstom.
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