Bombardier launched with great fanfare on Tuesday an update of the cabin of its Challenger 350 aircraft, which will be called the Challenger 3500. The project, which has received no government support, will make it possible to perpetuate the some 700 related jobs. to this project.
The Challenger 3500 is not a new business jet per se, but a Challenger 350 with a redesigned cabin. Important changes include the addition of the “Nuage” chair designed by the Bombardier team, found in the Global 7500s, as well as a voice control system.
Éric Martel, president and CEO of the Montreal company, insists that this is an important announcement. “It secures [les emplois] for a long time, he comments in an interview on the sidelines of the event. With a new program, we ensure success [qui va se refléter dans le] backlog. We are very proud. “
This is good news for employees, says Eric Rancourt, the District 11 business agent of the International Association of Machinists and Aerospace Workers (IAMAW). “It’s good news, but it’s going to have to translate into sales, and after that, we’ll be able to talk about recall to work. “
In March 2020, the company had carried out 2,500 layoffs, including 1,500 in Quebec. Bombardier is not yet ready to announce an increase in its workforce, but it adds that it is in recruiting mode. “We have several hundred open positions,” replies Mr. Martel. We stabilized the workforce, it was an objective that I had set myself this year. “
A look to the future
The Bombardier team launched this launch with great fanfare during an event organized at its facilities in Dorval in front of nearly 250 people, doubly vaccinated and masked, from business, aeronautics and politics. Singer Gabriella Laberge presented two tracks to entertain guests in a festive atmosphere that has long been absent from the company due to the pandemic and the difficulties of the CSeries, sold to Airbus.
Many people have wondered about the sustainability of the company, concedes Mehran Ebrahimi, professor at the University of Quebec in Montreal (UQAM). He thinks Bombardier’s announcement gives hope for the future of the aerospace industry in Montreal.
“The unveiling of a product of this quality shows that Bombardier is still there,” comments the expert who is also director of the International Observatory of Aeronautics and Civil Aviation. It shows that there is a living force in terms of innovation and creation, which is extraordinary. “
The aircraft is expected to enter service in the second half of 2022. This is the first update to the Challenger 300 family aircraft since the launch of the Challenger 350 in 2014. In 2018, the company had unveiled two models of the Global family, the 5500 and the 6500.
Mr. Martel did not want to specify the cost of the investment. He mentioned that the company is planning an investment budget of between US $ 200 and US $ 250 million per year and that the creation of the Challenger 3500 came from this envelope.
Tim James of TD Securities believes the project will require “limited capital investment.” “The transition from 350 to 3500 could reduce margins on this program, but we don’t believe it will have a major impact on results. “
The device is crucial for the company, which has refocused its attention on the Challenger and Global aircraft. Strong demand for business jets allowed Bombardier to revise its financial forecast for the year upwards when it released its second quarter results in early August.
“There is a strong tendency at the present time for people to leave commercial planes for reasons of safety or of unavailability to go to business planes,” explains Mr. Martel. Sales are going very well and we are replenishing our order books. “
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