Learjet 85 gets lower priority as Bombardier focuses on CSeries

Bombardier’s top executive said the Wichita-assembled Learjet 85 is a lower priority in the company’s flight test program as it concentrates on the CSeries and Global 7000 and 8000 jets.

The company is “managing priorities” in its flight test department as it works on multiple programs, Bombardier president and CEO Pierre Beaudoin told analysts in a conference call about the company’s third-quarter results.

“What we measure is market demand and how we can support them in flight test,” Beaudoin said. “We have to manage many programs at once; they were not planned that way.”

For the Learjet 85, “we want this aircraft on the market as soon as possible,” Beaudoin said. “But we have to manage priorities in our flight test program. The CSeries and 7000/8000, unfortunately for the Lear 85, are greater priorities given market demand and where we are in the program.”

Company officials have said that the Learjet 85 is flying, but Beaudoin on Thursday did not give a revised timeline on when it will enter service.

Beaudoin discounted speculation that the program might be abandoned.

The Learjet 85 has made more than 60 flights and has more than 100 hours of flight time, he said.

“So we’re moving ahead,” Beaudoin said. “That will be quite a success story in the market.”

The Learjet 85, the company’s largest Learjet to date, was on display last week during the National Business Aviation Association’s annual convention in Orlando, Fla.

The NBAA convention was a good show for Bombardier, Beaudoin said.

“NBAA was a very strong show for us,” he said. There was interest across the company’s platforms.

There are signs that the light business jet market is picking up.

“We feel that we see signs now, particularly in the inventory of used aircraft and the pricing of used aircraft,” Beaudoin said.

But, he said, “I can’t say demand for new is as strong as it was.”

Bombardier substantially upgraded its Learjet products in the past few years with the Learjet 70 and 75.

“The 70/75 are very competitive on the market,” Beaudoin said.

And interest in its Global line of business jets is strong, he said.

Demand for business jets has been strongest in the U.S., Beaudoin said.

Bombardier reported revenue for the third quarter of $4.9 billion, compared to $4.1 billion for the same period a year ago, up 20 percent.

Net income totaled $74 million, compared to $147 million for the same time a year ago.

For Bombardier’s aerospace division, the company recorded revenue of $2.6 million in the quarter, up 29 percent from $2 billion for the same time a year ago.

The company delivered 71 aircraft during July, August and September, compared to 45 for the same time a year ago. It received net orders for 76 planes, compared to 26 a year ago.

Its backlog totaled $37.9 billion as of Sept. 30, compared to $37.3 billion on Dec. 31.

Its CSeries aircraft returned to flight testing in September, and the program is progressing well, the company said. Entry-into-service for the CS 100 is expected in the second half of 2015, with the CS300 following about six months later.

The company took a charge of $120 million related to its organizational restructuring in its aerospace and transportation businesses. That reorganization was announced in July.

The company cut 2,000 jobs in its aerospace business and 900 in its transportation business as part of the restructuring. That included some jobs in Wichita.

This story was originally published October 30, 2014 at 7:51 AM with the headline "Learjet 85 gets lower priority as Bombardier focuses on CSeries."