Bombardier sells Q400 turboprop program
Bombardier has announced the sale of their Q400 turboprop program to subsidiary of Longview Aviation Capital Corporation, Viking Air.
The sale is worth roughly $300 million and includes assets and intellectual property for older, smaller Dash 8 models such as the Q300, Q200 and Q100. Finalization of the sale will occur during the second half of 2019. Bombardier has also sold its flight and technical training unit to CAE for $645 million.
With the CSeries (now known as the A220) in Airbus’ hands, Bombardier is left with their CRJ and business jet lineup as well as their train business. However, this is their intention as they plan to completely commit to the CRJ and business jet program. Engineers within the company will be shifted to their business jet lines, where future projects and developments will take place. A new Advanced Technology Office will be formed which aims to apply aviation technologies to their trains.
5000 jobs will also be cut, with a further figure to come soon as the company’s CEO continues with his restructuring plan. The layoffs alone will save Bombardier $250 million a year.
Longview said it would continue to run Toronto’s Q400 production line until the early 2020s, but declined to provide additional details to media. Expect more information in the near future as additional statements are released by Bombardier and companies involved in the sale.
