– One of many pilot-friendly features aboard the Global 7500 aircraft, dual HUD capability allows co-pilot to benefit from Enhanced and Synthetic vision for increased situational awareness
– Flagship Global 7500 aircraft redefines what is possible on a business jet with numerous innovations and the industry’s most advanced flight deck
– The Global 7500 aircraft boasts the longest range and the smoothest ride, and has demonstrated outstanding performance during its first 18 months in service
Bombardier is pleased to announce it has delivered the first Global 7500 aircraft equipped with a dual head-up display (HUD). This first-in-class capability provides additional safety and redundancy to what is already the most advanced and pilot-friendly cockpit in business aviation.
“The delivery of the first Global 7500 aircraft with a dual HUD showcases our outstanding commitment to safety,” said Michel Ouellette, Senior Vice President, Program Management and Engineering, Bombardier Aviation. “This cockpit is designed to put technology and automation at the service of the crew, rather than creating technology that the crew has to manage.”
The sophisticated HUD on the Global 7500 aircraft is equipped with Enhanced and Synthetic vision systems for optimal situational awareness. The second HUD builds on these advantages, with benefits including increased contribution from the co-pilot during HUD-assisted operations, easier switching between pilot flying and pilot monitoring as well as valuable redundancy during low-visibility approaches.
The Global 7500 aircraft is equipped with the latest Bombardier Vision flight deck, featuring unprecedented automation that remains firmly at the service of the crew. Examples include fully automatic fuel transfer and cabin pressurization management, and start-up sequences that are greatly simplified compared to those of other business jets. The unique, automated, self-diagnostic, electronic checklists ensure accuracy and relieve unnecessary manual tasks while providing full visibility to the crew. The Global 7500 aircraft’s proven fly-by-wire system is engineered to maximize safety through a design that combines pilot authority and the industry’s most complete flight envelope protection.
Complementing the safety attributes of the flight deck, the Global 7500 aircraft boasts outstanding low-speed handling characteristics on takeoff and landing, as well as the short-field performance of a light jet.
Expansion at Bombardier’s London Biggin Hill service centre will double the facility’s footprint to nearly 250,000 square feet
Increased capacity will benefit more operators of Bombardier business aircraft, including the new Global 7500 jet
London Biggin Hill Airport, February 5, 2020 – Bombardier proudly announced today the expansion of its London Biggin Hill service centre with the construction of a new and larger facility nearing 250,000 square feet (approximately 23,225 square metres) to replace its existing hangars. Scheduled to be operational by mid-2022, the new service centre will provide customers in the region with extended maintenance support and reinforce Bombardier’s customer service experience in Europe.
The facility will provide the space and flexibility to offer a full range of maintenance and refurbishment services on Bombardier’s vast portfolio of products, and has the capacity to accommodate as many as 14 Global7500 aircraft at the same time. The expansion will introduce sought-after capabilities and state-of-the-art installations, such as component painting and interior refurbishment capabilities, component repair and overhaul workshops and training rooms. The site will also ensure a quick response to its customers’ repair needs with the integration of a brand-new parts depot. Over the next several years, this significant expansion will bring the facility’s workforce to more than 250 employees and beyond to meet expanding demand.
“With the expansion of the London Biggin Hill service centre, Bombardier is taking another step in showing its unwavering commitment to providing customers with industry-leading services on a global scale, and the OEM expertise they rightfully deserve,” said Jean-Christophe Gallagher, Vice President and General Manager, Customer Experience, Bombardier Aviation. “Europe continues to be a strong market for business aviation, and we’re glad to show our commitment to our customers with this important investment in the region.”
Bombardier’s London Biggin Hill service centre was inaugurated in 2017 and offers tip-to-tail heavy maintenance capabilities on Learjet, Challenger and Global families of aircraft. The site is fully equipped to perform scheduled and unscheduled maintenance, modifications and avionics installations, and paint repair services. In 2019, the service centre added enhanced interior repair and refurbishment activities.
“The expansion of Bombardier’s service centre and the enhancement of its service and maintenance capabilities is a testament to the dynamism and attractiveness of the Biggin Hill Airport,” said Robert Walters, Commercial Director of London Biggin Hill Airport. “Bombardier has been a tremendous partner and, with this announcement, demonstrates its strong commitment to the continued growth of our world-class aviation hub.”
This expansion comes on the heels of numerous announcements in Bombardier’s vast support network, including the announcements of a new service centre at Miami-Opa Locka Executive Airport and of an expanded Singapore service centre, the recent addition of two U.S. line maintenance stations in Teterboro and Van Nuys, and the expansion of the Mobile Response Team (MRT) with a new Challenger 300 aircraft based in Munich, Germany.
Latécoère to acquire EWIS activities and related assets as well as a skilled workforce specializing in harnessing and electrical sub-assemblies in Querétaro
Agreement promotes long-term relationship with Latécoère and supports the optimization of Bombardier Aviation
Bombardier continues to produce major structures at its high-tech main campus in Querétaro, including the aft fuselage for the Global family of jets
Latécoère and Bombardier announced that the companies have entered into a definitive agreement, whereby Latécoère will acquire Bombardier’s electrical wiring interconnection system (EWIS) assets in Querétaro, Mexico. The two companies also concluded a long-term supply agreement that will see Latécoère supply Bombardier with electrical wiring interconnection systems.
The transaction is subject to customary conditions and approvals and is expected to close in the first half of 2020.
Approximately 700 skilled employees are dedicated to the manufacture of EWIS at Bombardier’s facility in Querétaro. Under the long-term supply agreement, Latécoère will continue to supply the EWIS for all Bombardier Aviation platforms, including Global, Challenger and Learjet aircraft from the current location to support Bombardier’s requirements. The annual turnover of the business is anticipated to be around USD 80 million.
“This acquisition reflects our willingness to emerge as a leading player in the global consolidation movement in the aeronautics sector,” said Yannick Assouad, CEO of Latécoère. “We keep deploying our manufacturing footprint on an international scale with a strong desire to strengthen our presence in the areas closest to our customers,” she added.
“This agreement exemplifies Bombardier’s focus on streamlining its activities to foster a strong and efficient aviation franchise,” said Paul Sislian, Chief Operating Officer, Bombardier Aviation. “With Latécoère’s reputation for excellence, this new partnership will result in a winning combination for both our companies.”
Under the terms of the transaction, Latécoère will pay Bombardier a cash consideration of USD 50 million. The transaction further supports Bombardier Aviation’s transformation and sharpens the company’s focus on its core manufacturing capabilities. The skilled employees who manufacture the main harnesses and electrical subassemblies in Querétaro will bring years of experience and value to Latécoère. The sale will not impact the remainder of Bombardier’s operations at its Querétaro site, which will continue to produce major structures for Bombardier aircraft, such as the aft fuselage for the Globalfamily of business aircraft – including the company’s flagship Global 7500 jet – the most complex aircraft component manufactured in Mexico.
Ultra-modern and high-tech manufacturing facility will be located at Toronto Pearson International Airport
Slated for completion in 2023, the one-million square-foot facility will be home to the most advanced aircraft manufacturing processes in the world
Strengthened commitment to Ontario’s aerospace industry, securing job growth and supporting economic development in the region for years to come
TORONTO, Dec. 04, 2019 (GLOBE NEWSWIRE) — Bombardier is pleased to announce that it has signed a long-term lease agreement with the Greater Toronto Airports Authority (GTAA) to build its new state-of-the art Global Manufacturing Centre located at Toronto Pearson International Airport. With preliminary site work underway in Mississauga and first production activities set to begin in 2023, the cutting-edge facility will optimize final assembly operations for all Global business jets, including the industry flagship Global 7500 business jet.
The Global Manufacturing Centre at Toronto Pearson International Airport, approximately 20 km from the current Global aircraft final assembly site at Downsview, will reinforce Canada’s leading position in the business aviation market.
“Today, I’m very excited to announce the relocation of our Global aircraft family production activities to a new, cutting-edge manufacturing facility at Toronto Pearson. This is a strategic move for Bombardier and a strong commitment to Ontario’s aerospace industry. It will allow us to offer world-class career opportunities and continue fueling the economic development of the region for years to come,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc.
The one-million square-foot facility will combine thousands of highly-skilled employees with 21st century production and tooling innovation. Bombardier employs the highest caliber technology throughout the manufacturing process of the Global 7500 business jets, including a state-of-the-art automated positioning system that uses laser-guided measuring to ensure major aircraft structures, such as the wing and fuselage, are joined consistently and perfectly each time. Combining human ingenuity with the most advanced machines, the Global 7500final assembly line in Toronto is a testament to the industry’s most advanced business jet.
This strengthened commitment to the Greater Toronto Area will also leverage significant recent R&D investments and a continued collaboration with Ontario’s colleges and universities for world class training, research and development.
Bombardier also confirmed it will continue to support the aerospace heritage of the Downsview site with a multi-million-dollar contribution to the Downsview Aerospace Innovation and Research Consortium (DAIR) to develop a visionary aerospace hub for academic research and training activities. The contribution includes $2.5 million CAD in capital funding to refurbish the historic Moth Building, where wartime Mosquito fighter bombers and Tiger Moth trainers were produced.
Visitors are invited to stretch out in the category’s longest cabin, featuring an Executive Suite that puts comfort and productivity at the forefront
TheLearjet 75 Liberty offers a larger cabin and superior performance while being certified to a higher safety standard – all for the same price as its competitors
More operators than ever have the freedom to fly in a Learjet thanks to an exceptional price point and advantageous operating costs, with special launch offers available at 2019 NBAA-BACE
Bombardier is happy to announce that it will showcase the newest member of the Learjet family, the Learjet 75 Liberty, with a full-size interior mock-up at the 2019 National Business Aviation Association Convention & Exhibition (NBAA-BACE) in Las Vegas, Nevada.
“This mock-up will truly show light jet customers just how spacious and comfortable our newest Learjet is,” said Peter Likoray, Senior Vice President, Worldwide Sales and Marketing, Bombardier Business Aircraft. “The Learjet 75 Liberty offers a larger cabin and superior performance for the same price as competitors, and it’s certified to a higher safety standard.”
The full-size interior of the Learjet 75 Liberty at Bombardier’s static display at NBAA-BACE will give visitors a unique opportunity to experience the features that set this light jet apart. Customers attending NBAA-BACE will also be eligible for promotional launch offers on the Learjet 75 Liberty.
The Learjet 75 Liberty debuts the segment’s first Executive Suite, a spacious area at the front of the cabin with two forward-facing seats and an unprecedented three feet (0.91 metres) of legroom for the light jet category. Passengers can stretch out on oversized ottomans that are easily stowable, and open up their laptops on large, retractable side tables. Located behind a standard forward pocket door, the Executive Suite is a quiet haven for busy executives.
Visitors to the Learjet 75 Liberty mock-up can also experience class-leading legroom in the Club Suite, with a four-seat configuration, large side tables and plenty of storage.
The latest member of the iconic Learjet family was unveiled earlier this summer and is generating strong interest on the market. It is expected to enter service in 2020.
The Learjet 75 Liberty is the fastest aircraft in the light jet segment with a top speed of Mach 0.81. Its range of 2,080 nautical miles can connect Las Vegas to New York, Seattle to Washington, D.C., and Mexico City to San Francisco, nonstop.* This superior performance comes at the same operating costs as competitor aircraft that offer less.
The Learjet 75 Liberty is certified to the highest safety standards applicable to commercial airliners, unlike most competitors in the light jet category that are certified to less stringent safety standards. Learjet aircraft offer impressive handling characteristics and outstanding performance. The Learjet 75 Liberty features the advanced Bombardier Vision flight deck, and includes the recently announced Garmin G5000 avionics upgrade.
Bombardier is proud to be participating at NBAA-BACE, where it will also showcase its flagship Global 7500 aircraft, the newly-certified Global 6500 aircraft, as well as the class-leading Challenger 350 and Challenger 650 aircraft.
David Coleal, President, Bombardier Aviation and HK Bellawings’ President, Mr. YJ Zhang
May 21, 2019 • Geneva Business Aircraft Press Release
• Two Global 7500 business jet options exercised are part of initial agreement signed in May 2018 at the European Business Aviation Convention & Exhibition (EBACE) in Geneva
• Letter of intent for five new Global 7500 aircraft reinforces flagship status as the largest and longest range business jet, ideally suited for the Greater China region
• HK Bellawings Jet Limited becomes operator managing China’s largest fleet of Global 7500 aircraft
Bombardier is pleased to announce that Hong Kong aircraft management company HK Bellawings Jet Limited has signed a letter of intent (LOI) for five new Global 7500 business jets and has also exercised options for two Global 7500 business jets, as part of the initial agreement signed in May last year. This news comes as the industry flagship Global 7500 aircraft is showcased for the first time at the European Business Aviation Conference & Exhibition (EBACE) in Geneva.
“The Global 7500 aircraft continues to demonstrate its unrivalled performance and smooth ride, all the while delivering uncompromising value to customers under any conditions, at any time, without the need for tailwinds,” said David Coleal, President, Bombardier Aviation. “HK Bellawings’ experienced and professional team is a perfect fit for the Global 7500 aircraft’s superior performance and we are thrilled that they have chosen our flagship to expand their growing fleet of business jets.”
“Today marks a step forward towards our goal of becoming the premier Asian private jet operator. We are very impressed with Bombardier’s Global 7500 aircraft since its entry into service less than six months ago,” said HK Bellawings’ President Mr. YJ Zhang. “Its unmatched performance and range is ideally suited for our customers in the Greater China region. As the operator that will manage one of the world’s largest fleet of Global 7500 aircraft, HK Bellawings Jet will further expand its business scope and continuously pursue higher goals.”
Winner of the 2019 Aviation Week Grand Laureate Award and a Red Dot award for design, the Global 7500 jet offers Bombardier’s signature smooth ride and a spaciousness that is unique among business jets. Featuring a full-size kitchen and four true living spaces, the aircraft sets the benchmark for the most exceptional cabin interior. The Global 7500 aircraft’s range of 7,700 nautical miles is the longest in business aviation. This business jet can connect the cities of Beijing, Shanghai and Hong Kong non-stop to the cities of New York, London or Milan, and also fly nonstop from Singapore to Vancouver.*
Established in 2014, HK Bellawings Jet Limited is a distinguished business jet management company dedicated to providing a diverse array of professional, highly efficient and comprehensive business aviation services and solutions, which include business jet management, aircraft maintenance, travel concierge service, aircraft acquisition service, and business aviation consultancy. They operate a fleet of Challenger and Global business aircraft.
Fleet operator continues to confirm orders after signing letter of intent for multiple Global 6500 and Global 7500 aircraft in May 2018
HK Bellawings Jet Limited will become operator managing China’s largest fleet of Global 6500 and Global 7500 aircraft
Flagship Global 7500 business jet making its airshow debut at ABACE
Long-range, large-cabin Global 5500 and Global 6500 aircraft on track to enter service this year
Bombardier is pleased to announce that Hong Kong aircraft management company HK Bellawings Jet Limited firmed up an order for four Global 7500 business jets. This news comes as the flagship Global 7500 aircraft arrives at the Asian Business Aviation Conference & Exhibition (ABACE), its first airshow since entering service.
“We are proud to announce this firm order as the Global 7500
aircraft makes its public debut at ABACE, one of the world’s most
important aerospace exhibitions,” said Khader Mattar, Vice President of
Sales for the Middle East, Africa, Asia Pacific and China, Bombardier
Business Aircraft. “Our flagship jet has been causing a sensation since
entering service less than four months ago, and this order underscores
that this aircraft, with its unparalleled range and four true living
spaces, is ideal for the Greater China region.”
HK Bellawings first announced their intent to purchase up to 18 Global 6500 and Global 7500
aircraft, for a potential value of $1.14 billion US, in May 2018 at the
European Business Aviation Convention & Exhibition (EBACE) in
Geneva. Hours earlier, Bombardier had stunned the industry by launching
two new long-range, large-cabin business jets, the Global 5500 and Global 6500 aircraft.
In September 2018, HK Bellawings firmed up its order of four Global 6500 and two Global 7500
business jets, for an approximate value of $370 million US, based on
current list prices for typically equipped aircraft. Today, HK
Bellawings and Bombardier are pleased to confirm that four more Global 7500 aircraft are now part of that firm purchase,
bringing the total of firm aircraft orders to 10. This latest
announcement represents a value of approximately $291 million US, based
on current list prices.
“We are thrilled to offer our customers access to the unparalleled Global 7500 aircraft as part of our unmatched fleet,” said HK Bellawings President Mr. YJ Zhang. “The Global 6500 and Global 7500
aircraft align with HK Bellawings’ rapid development to be a one-stop
business aviation solution. As the operator that will manage one of the
world’s largest fleet of Global 6500 and Global 7500 aircraft, HK Bellawings Jet will further expand our business scope and continuously pursue higher goals.”
The Global 7500 aircraft’s range of 7,700 nautical miles is
the longest in business aviation. This business jet can connect the
cities of Beijing, Shanghai and Hong Kong non-stop to the cities of New
York, London or Milan, and also fly nonstop from Singapore to
Vancouver.*
Established in 2014, HK Bellawings Jet Limited is a distinguished
business jet management company dedicated to providing a diverse array
of professional, highly efficient and comprehensive business aviation
services and solutions, which include business jet management, aircraft
maintenance, travel concierge service, aircraft acquisition service, and
business aviation consultancy. They operate a fleet of Challenger and Global business aircraft.
About Bombardier
With over 68,000 employees across four business segments, Bombardier is a global leader in the transportation industry, creating innovative and game-changing planes and trains. Our products and services provide world-class transportation experiences that set new standards in passenger comfort, energy efficiency, reliability and safety.
Bombardier announced today that it delivered its first European-based Global 7500 aircraft to long-time Bombardier customer, Niki Lauda, as production and completions of the award-winning business jet continue to ramp up as planned. Bombardier is on track to deliver between 15 and 20 Global 7500 aircraft in 2019.
Long-time Bombardier customer and F1 World Champion takes delivery of the first European-based Global 7500aircraft
Production and completions ramp up for Global 7500 jets proceeding as planned
The Global 7500 aircraft recently completed the world’s
longest-range business jet flight in history and broke the city pair
speed record between LA and NYC*
Winner of the 2019 Aviation Week Grand Laureate Award, the Global 7500 aircraft offers Bombardier’s signature smooth ride and a spaciousness that is unique among business jets
Bombardier announced today that it delivered its first European-based Global 7500 aircraft
to long-time Bombardier customer, Niki Lauda, as production and
completions of the award-winning business jet continue to ramp up as
planned. Bombardier is on track to deliver between 15 and 20 Global 7500 aircraft in 2019.
“We are thrilled to deliver our flagship Global 7500 business
jet to Niki Lauda, our esteemed customer for many years,” said David
Coleal, President, Bombardier Business Aircraft. “The Global 7500 aircraft
is simply the best business jet on the market. It sets the standard by
which all other aircraft in private aviation will be measured,
demonstrated by the prestigious design and aviation awards it has
garnered. The Global 7500 aircraft is the crown jewel of the industry.”
“I have enjoyed watching the evolution and growth of the Global
Aircraft program. I have always been impressed with the expertise,
craftsmanship and innovation that go into building every Global business jet,” said Niki Lauda. “The Global 7500
aircraft is the culmination of all the knowledge Bombardier teams have
gained over the years and I look forward to experiencing the range,
speed and comfort this jet has to offer.”
The Global 7500 jet is the latest in a series of Bombardier
business aircraft that Mr. Lauda has owned and piloted during his career
as an aviator. Previously, he operated a Global 6000, Global 5000 and Challenger 300 jet as his private aircraft.
Since its entry-into-service, the Global 7500 aircraft has unequivocally proven itself to be the highest-performing aircraft in the industry. The Global 7500
business jet has a top speed of Mach 0.925 and recently flew from
Singapore to Tucson, completing a record-setting 8,152 nautical mile
flight—the longest-range flight in business aviation history. In
addition, it also recently broke the city pair speed record between Los
Angeles and New York. The Global 7500 aircraft continues to assert its position as the leader in the business jet market.
The Global 7500 aircraft offers Bombardier’s signature smooth ride and a spaciousness that is unique among business jets. With its award-winning bespoke interior featuring a full-size kitchen and four true living spaces, the Global 7500 jet offers the ultimate in-flight experience. Setting the benchmark for the most exceptional cabin interior, the Global 7500 aircraft offers the most innovative features: Bombardier’s patented Nuage seat, meticulously designed for maximum comfort and the revolutionary nice Touch cabin management system (CMS), a new way to connect with the Global 7500 aircraft cabin through the Bombardier Touch dial, featuring business aviation’s first application of an OLED display.
About Bombardier
With over 68,000 employees across
four business segments, Bombardier is a global leader in the
transportation industry, creating innovative and game-changing planes
and trains. Our products and services provide world-class transportation
experiences that set new standards in passenger comfort, energy
efficiency, reliability and safety.
Headquartered in Montréal, Canada, Bombardier has production and
engineering sites in 28 countries across the segments of Transportation,
Business Aircraft, Commercial Aircraft and Aerostructures and
Engineering Services. Bombardier shares are traded on the Toronto Stock
Exchange (BBD). In the fiscal year ended December 31, 2018, Bombardier
posted revenues of $16.2 billion. News and information are available at bombardier.com or follow us on Twitter @Bombardier.
– Global 7500 jet’s extraordinary 8,152 nm flight is the longest mission ever flown by a purpose-built business jet – Flight also sets record for highest speed over longest distance in business aviation history, connecting Singapore to Tucson, AZ* – Aircraft landed with fuel reserves well above NBAA requirements; 4,300 lb of remaining fuel represents nearly 1,5 hours of additional flight – Aircraft provides the industry’s largest cabin and best cabin experience, perfectly suited for trans-oceanic journeys and an exceptionally smooth ride
Bombardier is proud to announce that its Global 7500 aircraft, has once again demonstrated its ability to go the distance by completing the longest range business jet flight in history**, successfully completing an 8,152-nautical-mile flight non-stop, pushing the boundaries of business travel.
The award-winning business jet departed from Singapore Changi Airport at 7:12 a.m. local time and arrived at Tucson International Airport at 8:19 a.m. local time, completing the long-range speed record flight for the city-pair.
“The Global 7500 aircraft was built to break all the records,” said David Coleal, President, Bombardier Business Aircraft. “It achieved the industry’s longest mission ever in business aviation after only two months in service. We’ve demonstrated its unequaled long-range and high speed capabilities, but also its ability to break records confidently with healthy fuel reserves remaining, once again, confirming its unsurpassed performance to customers.”
Since its entry-into-service, the Global 7500 jet has emphatically proven itself to be the highest-performing aircraft in the industry and this record showcases the real-world capabilities of this impressive aircraft. With a top speed of Mach 0.925, the aircraft has unquestionably shown its ability to fly even further than any other business jet with its advertised range of 7,700 nautical miles. The achievement of a flight that reaches 8,152 nautical miles clearly demonstrates that the aircraft is the only business jet with the high-performance capabilities required for long flights. Providing access to these demanding, long-range routes is an invaluable resource for customers.
Over the last two months, the Global 7500 jet has demonstrated exceptional performance and reliability, this first aircraft has completed more than 170 hours of flight around the world.
The Global 7500 aircraft offers spaciousness that is unique among business jets, with its award-winning interior featuring a full-size kitchen and four true living spaces. The Global 7500 aircraft also debuts Bombardier’s patented Nuage seat, which was meticulously designed for maximum comfort and will be exclusive to the new Global family of aircraft.
About Bombardier
With over 68,000 employees across four business segments, Bombardier is a global leader in the transportation industry, creating innovative and game-changing planes and trains. Our products and services provide world-class transportation experiences that set new standards in passenger comfort, energy efficiency, reliability and safety.
Headquartered in Montréal, Canada, Bombardier has production and engineering sites in 28 countries across the segments of Transportation, Business Aircraft, Commercial Aircraft and Aerostructures and Engineering Services. Bombardier shares are traded on the Toronto Stock Exchange (BBD). In the fiscal year ended December 31, 2018, Bombardier posted revenues of $16.2 billion.
-EBIT before special items(1) up 42% year-over-year to more than $1.0B on revenues of $16.2B for the year; EBIT increased 235% year-over-year to $1.0B
-2018 EBIT margin before special items(1) up 180 bps year-over-year to 6.3%; EBIT margin of 6.2%
-Full year free cash flow(1) of $182M, comprising proceeds from certain transactions, including $1.0B of cash generation in the fourth quarter; full year cash flows from operating activities of $597M
-Strong backlog growth at Business Aircraft and Transportation, with full year book-to-bill ratios(2) of 1.1 at both segments, and a consolidated backlog of $53.1B
-2019 guidance affirmed, clear path to achieve 2020 objectives
Bombardier (TSX: BBD.B) today reported its fourth quarter and full year 2018 results, highlighting solid margin growth, improved cash flows and continued progress executing its turnaround plan. The successful entry-into-service of the Global 7500 business jet in the fourth quarter also marked the completion of Bombardier’s heavy investment cycle, a key milestone in the company’s turnaround plan.
“2018 was a year of solid progress,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. “We continued to strengthen our business and set a strong foundation for growth. A foundation that includes a refreshed portfolio of best-in-class products, industry-leading backlogs and a more streamlined cost structure, all of which gives us a clear path to achieve our 2020 objectives.”
“As we begin the fourth year of our turnaround journey, Bombardier is a much stronger company,” continued Bellemare. “Our major program risks are retired, our heavy investment cycle is behind us and our franchises are well positioned for growth. For 2019, we are focused on flawless execution of our rail projects, the ramp-up of the Global 7500 and entry-into-service of the Global 5500 and Global 6500. We will also continue to drive financial performance through disciplined capital allocation and improved productivity and efficiency across the organization.”
Bombardier’s 2018 consolidated revenues reached $16.2 billion, reflecting 3% average year-over-year growth across Transportation, Business Aircraft and Aerostructures, excluding currency impact. Book-to-bill ratios(2) at Transportation and Business Aircraft both equaled 1.1 for the year, demonstrating strong demand for Bombardier’s products and services. Bombardier’s consolidated backlog reached $53.1 billion at the end of 2018, supporting future growth targets.
EBIT before special items continued to improve in 2018, increasing 42% year-over-year from $725 million to more than $1.0 billion, the top-end of the company’s guidance. The 6.3% EBIT margin before special items in 2018 represents a strong 330 bps increase since the start of the turnaround plan in 2015, well above the 5-6% range originally targeted. On a reported basis, EBIT increased 235% year-over-year to $1.0 billion, representing a margin of 6.2%.
Bombardier generated $1.0 billion of free cash flow in the fourth quarter of 2018. Full year free cash flow generation equaled $182 million, at the high end of the company’s revised guidance. This amount includes aggregate net proceeds of approximately $750 million from the sale of the Downsview property and the monetization of royalties associated with the previously announced CAE transaction. Cash flows from operating activities amounted to $597 million for the full year, and to $1.3 billion in the fourth quarter. Bombardier ended the year in a solid cash position, with $3.2 billion in cash and cash equivalents.
Selected results
SEGMENTED RESULTS AND HIGHLIGHTS
Business Aircraft
Business Aircraft achieved a historical milestone in December 2018 with the on plan service entry of the largest and longest range industry flagship Global 7500 aircraft. With a strong backlog and unsurpassed performance in its category, the Global 7500 is expected to be Business Aircraft’s key growth driver for years to come.
Revenues, EBIT before special items and deliveries were in line with guidance for 2018.
The segment achieved industry leading deliveries at 137 aircraft for 2018, including 42 Global, 83 Challenger and 12 Learjet.
Continued progress on the aftermarket strategy drove a 14.3% revenue increase year-over-year. Further expansion of our service network was also announced with the groundbreaking for a new centre in Miami, Florida to service U.S. and Latin American customers.
During the year, Business Aircraft unveiled the new Global 5500 and Global 6500 aircraft featuring an all-new Rolls-Royce engine and a newly optimized wing, increasing the aircraft range and fuel burn performance. With flight testing at advanced stages, these performance-leading aircraft are expected to enter into service at the end of 2019.
Commercial Aircraft
In 2018, Commercial Aircraft significantly reshaped its portfolio, focusing on the CRJ Series program and its aftermarket business, while also participating in the growth of the A220 through its partnership with Airbus:
The C Series Partnership (CSALP) with Airbus closed on July 1, 2018, bringing together two complementary product lines and the benefit of Airbus’ global reach, creating significant value potential for the newly rebranded A220.
A definitive agreement was reached with Longview Aircraft Company of Canada Limited for the sale of the Q Series aircraft program assets, including aftermarket operations and assets, for gross proceeds of approximately $300 million, on November 7, 2018. The transaction is expected to close by the second half of 2019, subject to customary closing conditions and regulatory approvals. Net proceeds for this transaction are expected at approximately $250 million net of fees, liabilities and normal closing adjustments.
Revenues and aircraft deliveries for 2018 were in line with guidance on the basis of the deconsolidation of CSALP results from Commercial Aircraft since July 1, 2018.
EBIT loss before special items(11) was $157 million reflecting for the most part losses on the C Series program in the first half of the year and the post-closing CSALP equity pickup. EBIT loss of $755 million includes a $616 million pre-tax accounting charge related to the closing of the CSALP transaction.
Commercial Aircraft continues to actively participate in the regional aircraft market with the established scope-compliant CRJ Series aircraft, with a focus on reducing costs and increasing volumes while optimizing the aftermarket for the large installed base in service around the world today. As the focus is to return the program to profitability, Bombardier also announced in 2018 it is exploring strategic options for the program.
Aerostructures and Engineering Services
Aerostructures and Engineering Services is positioned as a key supplier on early life cycle growth programs, including the new A220 and Global 7500 aircraft, expected to drive sustainable growth.
In 2018, the segment revenues grew 21% year-over-year to $2.0 billion in line with guidance.
Focused execution during the ramp-up of these programs and a one-time favorable item (approximately 50 bps) associated with the closing of the C Series Partnership have enabled to deliver 9.6% EBIT before special items, above its guidance. EBIT margin for the segment was 7.5%.
On February 6, 2019, the Corporation acquired the Global 7500 aircraft wing program operations and assets from Triumph Group Inc., for a nominal cash consideration. This transaction is expected to strengthen Bombardier’s position as a leading aerostructures manufacturer, to enable the company to leverage its extensive technical expertise to support the ramp-up of the Global 7500 aircraft, and to enhance its long-term success. Bombardier will continue to operate the production line and integrate the employees currently supporting the program at Triumph’s Red Oak, Texas facility.
On February 7, 2019, Paul Sislian was appointed President, Aerostructures and Engineering Services. Paul brings more than 20 years of aerospace and industrial experience, including serving most recently as Chief Operating Officer for Bombardier Business Aircraft.
Transportation
On February 7, 2019, Danny Di Perna was appointed President, Bombardier Transportation. Danny brings more than 30 years of industrial experience to this new role. He has a proven record of success leading complex industrial projects and organizations, driving operational efficiency and improving quality. Most recently, Danny led Bombardier’s Aerostructures and Engineering Services segment.
In 2018, Transportation recorded orders totaling $9.9 billion, fueled by a $3.3 billion order intake in the fourth quarter. Book-to-bill(2) reached 1.5 for the fourth quarter, resulting in a 1.1 ratio for the full year, continuing to position the segment for growth in revenues and profitability, supported by strong industry fundamentals.
Order intake for the year reflects project wins across geographies, with notable contract awards in Europe, led by SNCF’s repeat order in France, in Asia led by the Singapore Metro contract, and North America with Airport and Mass transit mobility solutions for Phoenix and Los Angeles.
The backlog reached $34.5 billion as at December 31, 2018. The backlog growth (excluding currency fluctuations) was supported by a stronger mix of platform projects and increasing signalling and service contract orders, consistent with Transportation’s strategy to increase speed-to-market; provide customers with end-to-end solutions; de-risk project execution while also growing margins.
Subsequent to the fourth quarter, in January 2019, Transportation was awarded a contract to supply 113 new generation passenger rail cars valued at $669 million with options for up to 886 additional cars, by the New Jersey Transit Corporation.
Financial performance for 2018 positions Transportation to reach 2019 guidance:
Revenues grew 4% year-over-year to $8.9 billion, in line with guidance, supported by a favourable currency impact in the first half of the year (2% growth excluding currency impact). Services and signalling grew to over 34% of revenues for the year, as increasing focus turns to integrated customer solutions.
EBIT before special items grew to $750 million for the year, representing an 8.4% margin (EBIT of $774 million, or 8.7% margin). Fourth quarter margins before special items were 7.7% (10.9% EBIT margin), as a result of contract estimate adjustments largely associated with a legacy project, resulting in full year margins before special items, slightly below the 8.5% guidance.
As discussed at the Company’s December 2018 Investor Day, Transportation continues to advance a number of legacy projects. The Company has plans in place and is taking actions to finalize system integration, obtain homologation and align delivery schedules with customers. Bombardier expects to substantially complete deliveries on most of these projects and significantly recover working capital through 2019.
As the portfolio continues to improve, Transportation anticipates growing EBIT margins before special items to approximately 9% for 2019, in line with guidance.
CDPQ Investment in BT Holdco
The Company also announced that Transportation’s results in 2018 did not reach the performance targets underlying Caisse de dépôt et placement du Québec’s (CDPQ) investment in BT Holdco. Accordingly, for the 12-month period starting on February 12, 2019, Bombardier’s percentage of ownership on conversion of CDPQ’s shares will decrease by 2.5%, returning to the original 70%; and the preference return entitlement rate on liquidation of its shares will increase from 7.5% to 9.5% for this period. Any dividends paid by BT Holdco to its shareholders during this period will be distributed on the basis of each shareholder’s percentage of ownership upon conversion, being 70% for Bombardier and 30% for CDPQ. These adjustments will become effective once the audited consolidated financial statements of BT Holdco are duly approved by its board of directors.
Headquartered in Montréal, Canada, Bombardier has production and engineering sites in 28 countries across the segments of Transportation, Business Aircraft, Commercial Aircraft and Aerostructures and Engineering Services. Bombardier shares are traded on the Toronto Stock Exchange (BBD). In the fiscal year ended December 31, 2018, Bombardier posted revenues of $16.2 billion. News and information are available at bombardier.com or follow us on Twitter @Bombardier.
