Bombardier Aerospace to Consolidate Learjet and Challenger Series Business Aircraft Production at Two Manufacturing Sites.Business Editors MONTREAL--(BUSINESS WIRE)--Oct. 16, 2003 To result in net annual savings of $33 million Cdn ($25 million US); Will impact employment levels in Tucson Tucson (t  `sŏn'), city (1990 pop. 405,390), seat of Pima co., SE Ariz.; inc. 1877. and Wichita Wichita, indigenous people of North AmericaWichita (wĭch`ĭtô), Native North Americans whose language belongs to the Caddoan branch of the Hokan-Siouan linguistic stock (see Native American languages). Bombardier Aerospace Bombardier Aerospace is a division of the Bombardier group, with the third largest workforce (behind Boeing and Airbus) and the fourth largest in yearly delivery of commercial airplanes (behind Boeing, Airbus and Embraer). has announced plans to create integrated manufacturing centres for its Bombardier Learjet Learjet is a manufacturer of business jets for civilian and military use. It was founded in the late 1950s by William Powell Lear Jr. as Swiss American Aviation Corporation. Learjet is now a subsidiary of Bombardier and marketed as the "Bombardier Learjet Family". (i) and Challenger(i) Series business jets at its Wichita, Kansas
Wichita, also known as the Air Capital of the World, is the largest city in the U.S. state of Kansas, as well as a major aircraft manufacturing hub and cultural center. and Dorval, Quebec For the fictional princedom of Dorval, see . Dorval is a city in southwestern Quebec, Canada in the southwestern part of the Island of Montreal; pop. 17,706 (2001). As of the 2006 Canadian Census, the population increased by 2.2% to 18,088. locations respectively. The new business aircraft manufacturing centres will regroup re·group v. re·grouped, re·group·ing, re·groups v.tr. To arrange in a new grouping. v.intr. 1. To come back together in a tactical formation, as after a dispersal in a retreat. business aircraft final line activities and interior completions at one site. By combining these two activities in one location, Bombardier Aerospace will significantly reduce its production cycle times and inventory levels while improving its competitiveness. Production of Bombardier regional aircraft currently follows the integrated manufacturing centre model. The creation of the two business aircraft integrated manufacturing centres will result in total net savings of $33 million Cdn annually ($25 million US) starting with the first full year of operation. The integrated manufacturing centres will be fully operational by the first quarter of 2005.
Additional benefits of the integrated manufacturing centres include:
- A centralized expertise around the same product lines, which will
enable Bombardier Aerospace to be more efficient in its
manufacturing activities and to better focus and respond to its
customers' needs with a more streamlined and flexible
organizational structure.
- The proximity to its supplier base, which will facilitate
suppliers' 'just in time' integration into production activities
and help achieve the full potential of cost reduction initiatives
for the acquisition of aircraft components.
- A reduction in the number of sites required for production
activities, which will make available manufacturing space for other
business units.
Impact on Employment Levels
The creation of these integrated manufacturing centres will result in
the relocation of manufacturing activities and a reduction in
employment levels. Estimated severance costs related to the reduction
in employment levels will be approximately $8 million US.
- In Tucson, a reduction of approximately 800 jobs over the next 15
to 18 months will take place as a result of the transfer of
Bombardier Learjet interior completions to Wichita and Bombardier
Challenger interior completions to Dorval. Some of the employees
affected will have the opportunity to relocate to fill jobs in
Wichita and Montreal.
In addition, Tucson has been selected as the location for the
western Bombardier Regional Aircraft Service Centre, which will
result in the creation of approximately 300 new jobs over a three-
year period. The Bombardier Business Aviation Services Centre will
continue to operate at the site, adjacent to Tucson International
Airport.
- In Wichita, there will be an overall workforce reduction of
approximately 350 positions over the next 12 to 15 months. The
increase in the number of employees due to the transfer of
Bombardier Learjet completions from Tucson to Wichita will be
offset by a reduction in the workforce as the assembly process of
the Bombardier Challenger 300 is moved to Dorval.
- In Dorval, there will be no immediate increase in the level of
employment resulting from the transfer of the Bombardier Challenger
300 assembly line from Wichita and Bombardier Challenger 300 and
Challenger 604 interior completions from Tucson.
The table on page three summarizes the changes to site manufacturing
activities as well as their impact on employment levels:
Bombardier Aerospace
Current and Future Site Manufacturing Activities
---------------------------------------------------------------------
Current Operations Future Operations Workforce
Reduction
---------------------------------------------------------------------
Tucson
---------------------------------------------------------------------
Learjet 40 completions Business Aviation 800 jobs
Learjet 45 completions Services Center over the next
Learjet 60 completions Western Bombardier 15 to 18
Challenger 300 completions Regional Aircraft months
Challenger 604 completions Service Centre
Business Aviation Services
Center
---------------------------------------------------------------------
Wichita
---------------------------------------------------------------------
Learjet 40/45 final Learjet 40/45 350 jobs
assembly final assembly over the
Learjet 60 final and completions next 12 to
assembly Learjet 60 final 15 months
Challenger 300 final assembly and
assembly completions
Business Aviation Business Aviation
Services Center Services Center
---------------------------------------------------------------------
Dorval
---------------------------------------------------------------------
Challenger 604 final Challenger 300/604
assembly final assembly Nil
Challenger 800 final and completions
assembly Challenger 800
Global Express/Global final assembly
5000 completions Global Express/Global
CRJ200 final assembly 5000 completions
CRJ200 final assembly
---------------------------------------------------------------------
Toronto
---------------------------------------------------------------------
Q100/200/300 final
assembly No change Nil
Q400 final assembly
Global Express/Global
5000 final assembly
---------------------------------------------------------------------
Mirabel
---------------------------------------------------------------------
CRJ700 final assembly
CRJ900 final assembly No change Nil
---------------------------------------------------------------------
Belfast
---------------------------------------------------------------------
CRJ200 forward and
central fuselage,
horizontal stabilizer,
wing components, engine
nacelles
CRJ700 forward and central No change Nil
fuselage, engine nacelles,
wing components
CRJ900 complete fuselage,
engine nacelles, wing
components
Q400 wing mounted flight
components
Learjet 40/45 complete
fuselage
Challenger 300 centre
fuselage
Challenger 604 horizontal
stabilizer, centre
fuselage, engine
nacelles
Global Express and
Global 5000 forward
fuselage, horizontal
stabilizer, tailcone,
engine nacelles
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October 16, 2003
"An integrated assembly and completion process is a significant competitive advantage in our industry," said Pierre Pierre (pēr), city (1990 pop. 12,906), state capital (since 1889) and seat of Hughes co., central S.Dak., on the east bank of the Missouri River, opposite Fort Pierre; inc. 1883. Beaudoin, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , Bombardier Aerospace. "These new integrated manufacturing centres will ensure our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. success by maximizing synergies in our business aircraft production operations, resulting in significant cost savings and increased efficiency." "We are dedicated to industry leadership in the regional and business aircraft markets. This integrated manufacturing strategy will simplify our processes and make it simpler for our customers to do business with us," he added. Bombardier Aerospace, a unit of Bombardier Inc., is a world leader in the design and manufacture of innovative aviation products and provides services for the regional, business and amphibious aircraft Noun 1. amphibious aircraft - an airplane designed to take off and land on water amphibian aeroplane, airplane, plane - an aircraft that has a fixed wing and is powered by propellers or jets; "the flight was delayed due to trouble with the airplane" markets. It also offers Bombardier Flexjet Flexjet is a fractional ownership company wholly owned by Bombardier. As such their fleet consists solely of Bombardier Aircraft including
Bombardier Inc., a diversified diversified (di·verˑ·s manufacturing and services company, is a world-leading manufacturer of business jets, regional aircraft, rail transportation equipment and motorized mo·tor·ize tr.v. mo·tor·ized, mo·tor·iz·ing, mo·tor·iz·es 1. To equip with a motor. 2. To supply with motor-driven vehicles. 3. To provide with automobiles. recreational products. It also provides financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. and asset management in business areas aligned with its core expertise. Headquartered in Montreal Montreal (mŏn'trēôl`), Fr. Montréal (môNrāäl`), city (1991 pop. 1,017,666), S Que., Canada, on Montreal island, surrounded by St. Lawrence River and Rivière des Prairies. , Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , the Corporation has a workforce of some 75,000 people and manufacturing facilities in 25 countries throughout the Americas A·mer·i·cas , the See America. , Europe and Asia-Pacific. Its revenues for the fiscal year ended Jan. 31, 2003 stood at $23.7 billion Cdn. Bombardier shares are traded on the Toronto, Brussels and Frankfurt stock exchanges Frankfurt Stock Exchange The largest of Germany's eight securities exchanges, operated by Deutsche Borse AS. (BBD BBD In currencies, this is the abbreviation for the Barbados Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. , BOM and BBDd.F). (i) Trademarks of Bombardier Inc. or its subsidiaries. |
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