Bombardier Aerospace announced that it delivered 353 aircraft for the fiscal year ending January 31, 2009. This compares to 361 aircraft deliveries in the previous fiscal year 2007/08 (year ending January 31, 2008). It also received 378 aircraft orders, net of cancellations, compared to an exceptional 698 orders, net of cancellations, for the previous fiscal year. Its book-to-bill ratio for the year stands at 1.07. For the current fiscal year 2009/10, Bombardier expects to deliver a slightly lower total number of aircraft than last fiscal year 2008/09.
In fiscal year 2008/09, Bombardier delivered 239 business jets compared to 232 for the same period last year. It received an intake of 262 orders, net of cancellations, compared to an exceptional 452 orders, net of cancellations, for the same period last year. The company has felt the impact of the worldwide economic slowdown through a greater than usual level of deferrals and cancellations for its business aircraft and, as a result, is reducing its Learjet and Challenger production rates. The book-to-bill ratio for fiscal year 2008/09 stands at 1.1. For the current fiscal year 2009/10, Bombardier expects to deliver approximately 10% fewer business aircraft compared to last fiscal year 2008/09. The decision to adjust the Learjet and Challenger business aircraft production rates is expected to result in a total workforce reduction of approximately 1,010 temporary workers/subcontractors and 350 permanent employees, or about 4.5% out of a total workforce of approximately 30,000 workers worldwide. The severance costs associated with the manpower reduction of permanent employees are expected to be less than $5 million.
The workforce reductions will take place at Bombardier Aerospace