Bombardier Aerospace to cut 10 percent of jobs

[April 02, 2009]  TORONTO (AP) -- Canada's Bombardier Aerospace is cutting 3,000 jobs because the demand for its business aircraft has deteriorated rapidly and is expected to remain weak for the foreseeable future.

The company said Thursday it now expects to deliver approximately 25 percent less business aircraft this fiscal year.

The world's third-largest maker of commercial aircraft says the cuts represent 10 percent of its total work force. The cuts will take place at its facilities in Canada, the United States, Mexico and Northern Ireland by the end of 2009.

The layoffs are in addition to the 1,360 announced Feb. 5 when Bombardier adjusted the production rates of its Learjet and Challenger aircraft.

"Bombardier Aerospace is revising downward all of its business and regional jets production rates and implementing measures to meet the continuing challenges facing the aviation industry," the company said in releasing its earnings.

The cuts come just months after U.S. lawmakers scolded auto executives for flying to Washington in private jets to ask for taxpayer bailouts. Two of the largest makers of general-aviation aircraft -- Cessna, a unit of Providence, R.I.-based Textron and Hawker Beechcraft -- have launched advertising campaigns to tell business executives to ignore criticism and keep buying planes.

Bombardier is also world's second-largest train maker.

The company also reported its financial results for fiscal 2009 on Thursday, saying net income rose to $309 million in the fourth quarter compared to $218 million the year before.

Earnings per share amounted to 17 cents, up from 12 cents per share in the same quarter of the 2008 business year.

[Associated Press; By ROB GILLIES]

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.