Bombardier Business Aircraft confirmed today that it has canceled the Learjet 85 program, citing “lack of sales following the prolonged market weakness” and ending months of speculation that the midsize jet was doomed since being “paused” in mid-January. The Canadian OEM took a $1.2 billion writedown on the program during the third quarter, it said during an investor conference call this morning. Combined with a $3.2 billion charge related to schedule delays on the CSeries, Bombardier reported a loss of $4.9 billion in the quarter, despite revenue intake of $4.1 billion.
The company delivered 43 business jets during the quarter: seven Learjet 70/75s, 18 Challenger 300/350s, three Challenger 605s and 15 Global 5000/6000s. This tally is two fewer than in the same period last year, during which it handed over seven Learjet 70/75s, one Learjet 60XR, 12 Challenger 300/350s, six Challenger 605s and 19 Globals. However, business jet deliveries climbed for the first nine months at 135 aircraft, nine more than last year.
Net orders and backlog took a severe hit from the Learjet 85 cancellation. The company took in gross orders for 41 jets during the quarter but suffered cancellations for 73—64 of them Learjet 85s—for a net loss of 32. Excluding the midsize Learjet cancellations, book-to-bill was 0.7:1 for the quarter. Bombardier’s business jet backlog shrunk by nearly $4 billion year-to-date, to $20.3 billion.