Canadian aerospace manufacturer Bombardier (OTC: BDRAF) (OTC: BDRBF) said Thursday it would discontinue its classic Learjet brand as part of its continuing effort to boost profitability. "With more than 3,000 aircraft delivered since its entry-into-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 challenging market dynamics, we have made this difficult decision to end Learjet production."
The layoffs include 800 people in Canada, mostly in Quebec, and 250 in Wichita where Learjet is made, Martel later told reporters. Bombardier, which had previously planned to break even on free cash flow in 2020, now expects to turn cash flow-positive between 2021 and 2023. Bombardier has shed assets in recent years, transforming itself from plane and train maker to business jet manufacturer, to restore profitability and cut debt after facing a cash crunch in 2015.
French train maker Alstom said on Friday it had completed its previously announced purchase of Bombardier Inc's rail business, with the reference price of the deal coming at the low end of its guidance. Alstom said the price for the deal was established at 5.5 billion euros ($6.7 billion), at the bottom of a range of 5.5-5.9 billion euros indicated previously. Last year, Alstom secured European Union antitrust approval to acquire Bombardier's rail business, in an acquisition aimed at making Alstom the world's second-largest rail maker after China's CRRC Corp.