Bombardier cutting 5,000 job, including Wichita

The logo of Bombardier is seen during the Latin American Business Aviation Conference & Exhibition fair at Congonhas Airport in Sao Paulo Brazil Aug. 14 2018

Most of the cuts are planned for Canada, which will be 3,000 jobs.

The Montreal-based group also announced the sale of "non-core assets" totalling around US$900 million, including the Q Series medium range turboprop aircraft programme and the de Havilland trademark, which was sold for some US$300 million to a Canadian investment fund.

Renaud Gagne of Unifor, the union representing Canadian aerospace workers, however, warned that the layoffs "send a worrisome message for the future of the industry".

The move is expected to save the company about $250 million a year by 2021.

Flight simulator and training firm CAE, meanwhile, has agreed to pick up Bombardier's business aircraft flight training segment, which is forecast to generate royalties of US$800 million. The Canadian government provided Bombardier with $372.5 million in reimbursable funding for the CSeries and Global 7500 programs a year ago, stopping short of directly investing in the company.

Bellemare probably isn't done remaking Bombardier.

Free cash flow came in "well below" expectations that Bombardier could break even on cash without falling back on its $635 million in proceeds from the sale of a Toronto plant earlier this year, said analyst Benoit Poirier of Desjardins Capital Markets.

Longview Aviation, the parent company to Viking Air Ltd., said once it completes its deal with Bombardier it will become North America's largest commercial turbo-prop aircraft manufacturer.

Together, those two businesses accounted for about 88 per cent of third-quarter sales.

Bombardier in Derby said there were no indications yet that the job cuts would have a significant impact in the city. The company is assessing buyback options for the stake, Bombardier chief financial officer John Di Bert said on a conference call with analysts.

"The transportation side and business jets are clearly the central focus of Bombardier going forward", Moore said.

Revenue will increase about 10 per cent to US$18 billion in 2018, with earnings before interest, taxes and special items targeted to climb about 20 per cent to as much as US$1.25 billion, the company said.

On an adjusted basis, Bombardier said it earned four cents per share in the quarter compared with a break-even result in the third quarter of 2017. Quarterly cash burn decelerated to US$370 million in the period.

The Wichita site - which assembles Learjets, performs flight testing of all the company's aircraft and also repairs and maintains Bombardier's full line of business jets - employs about 1,600 people.

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