Order Backlog Increased, Callbacks Possible
What a difference 10 months can make. Bombardier Aerospace
announced plans Wednesday to shave a day off the length of time it
takes to produce a CRJ-700 and CRJ-900 jet -- from five days to
four -- to meet the demand of its backlog. To accomplish this, the
plane maker will cancel the employee layoffs it
announced last October.
The company planned to eliminate 1,330 positions in Northern
Ireland and Quebec factories, according to Bloomberg. It will now
retain 456 of those and possibly recall about 100 more, according
to spokesperson Marc Duchesne. The company had already completed
"Today we are talking more about stability in our organization
and we'll see in some cases if we will recall some employees,"
Aerospace President Pierre Beaudoin said.
The company said its backlog had swelled 38 percent since the
beginning of the fiscal year to a record $18.2 billion, according
to the United Press International, although it also posted a $71
million second quarter loss Wednesday.
"What's driving aerospace is the selling price of business jets
and the rebound of regional jets," Chief Executive Officer Laurent
The loss was due to a write-off of its 20 percent stake in the
collapsed Metronet consortium, the organization responsible for
maintaining an operating London's underground train network.
As ANN reported, the Federal
Aviation Administration and Canada's Transportation Safety Board
placed operating restrictions this week on older Bombardier
(nee Canadair) CRJ-100, -200, and -440 aircraft. Those types are in
operation with several North American commuter airlines, according
to the Wall Street Journal.
Citing the WSJ report, Reuters says regulators made their
decision following several reports of stuck flaps on the cited
aircraft. Those situations have led to several no-flap landings. No
fatal accidents related to the apparent defect have been
There are 684 affected aircraft registered in the US.
The company doesn't expect the new regulations to have a
"material" impact on its finances or on the operations of its
clients, Beaudoin said.
The company is currently working on fixing the issue. As the
problem is related to cold-weather flying, he said, a complete
redesign is being developed and certification will be sought for