canadas bombardier moves to direct sales dumps mideast rep
Last Updated : GMT 16:22:18
Arab Today, arab today
Arab Today, arab today

Canada's Bombardier moves to direct sales, dumps Mideast rep

Arab Today, arab today

Arab Today, arab today Canada's Bombardier moves to direct sales, dumps Mideast rep

Bombardier Chief Executive Officer Alain Bellemare
Montreal - AFP

Bombardier announced Wednesday the end of a nearly 40-year partnership with Tag Aeronautics to sell its aircraft in the Middle East and North Africa, saying it will now sell directly to customers.

The breakup was described as amicable, but the related restructuring of several customer deals resulted in the cancellation of orders for 24 business jets worth US$1.75 billion and options for 30 more.

As well, Bombardier will take a special charge of US$278 million in its 2015 fourth quarter financial results.

"We are adapting our business model to capitalize on growing market opportunities around the world and will focus on direct interaction with our customers," chief executive Alain Bellemare said in a statement.

The move is part of an ongoing restructuring at the beleaguered Canadian manufacturer, as it struggles to get its new flagship CSeries jetliners off the ground after repeated delays and cost overruns.

Tag, which sold Challenger and Global series business aircraft for Bombardier in 21 countries, will itself continue to be a Bombardier customer, said Tag Group chief executive Mansour Ojjeh.

Bombardier accounts for about one-third of all business jets sold in the Middle East and North Africa.

The company said it expects to more than make up for the cancelled orders by selling those business jets "at improved margins."

Its overall business jet sales have brought in a steady cash flow to help finance the development of its flagship CSeries -- the first new medium-range passenger jet in 25 years, which aims to go head to head with the workhorses of the aviation market, the Airbus A320 and Boeing 737.

But slowing global demand forced Bombardier to cut production of its Global jets last year.

Meanwhile, the company has not secured any new orders for its CSeries in more than a year. The current number of firm orders for the aircraft, which can seat up to 160 passengers, is 243. The first plane is scheduled to be delivered to Lufthansa subsidiary Swiss in the middle of 2016.

In 2015, Bombardier also brought in a new chief executive, raised billions of dollars in debt and equity sales, and secured a lifeline from the government of Quebec, where it is based, in exchange for a 49.5 percent stake in the CSeries program and a slice of its rail unit.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

canadas bombardier moves to direct sales dumps mideast rep canadas bombardier moves to direct sales dumps mideast rep

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

canadas bombardier moves to direct sales dumps mideast rep canadas bombardier moves to direct sales dumps mideast rep

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Prince's vision spurs new Cornwall village

GMT 03:12 2017 Saturday ,18 November

Prince's vision spurs new Cornwall village
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Israel ready to cooperate with Saudi

GMT 06:31 2017 Friday ,17 November

Israel ready to cooperate with Saudi
Arab Today, arab today Airbnb raided by Japan

GMT 01:55 2017 Saturday ,18 November

Airbnb raided by Japan
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Baidu speeds up AI progress

GMT 11:46 2017 Friday ,17 November

Baidu speeds up AI progress
Arab Today, arab today Hanan Metawe denies apology for “Major Treason”

GMT 12:22 2017 Thursday ,16 November

Hanan Metawe denies apology for “Major Treason”
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 08:06 2017 Wednesday ,15 November

Ayten Amer happy for “The Flood” success

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 06:13 2017 Friday ,17 November

Pope denounces healthcare inequality

GMT 05:18 2017 Thursday ,16 November

Boeing announces $27bn from flydubai

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday