Somebody forgot to tell Bombardier how much richer the global rich are getting. “Bombardier to Cut Production of Most Lucrative Jets” is a May 14, 2015 Wall Street Journal article about how “tough economic conditions world-wide and geopolitical issues have reduced demand for its Global 5000 and 6000 jets, its most expensive long-range business jets currently in serial production. The production cuts will result in the loss of about 1,750 jobs and weigh most heavily on its Montreal-area operations, where about 1,000 workers will be laid off.”
[The Global Express is a Gulfstream competitor and costs about $50 million if moderately pimped out. It is a cousin to the Canadair Regional Jet that I used to fly (previous post about landing at LGA; another visual approach posting).]
Or maybe the rich can buy 737s now?
Interesting. I saw this headline today: “Up To 30 Gulfstream Aircraft To Join Qatar Executive Fleet.”
So I think it might be that there ARE enough rich bastards, but the Canadians are having a more difficult time finding them.
Oil based kleptocracies are among the best customers for private jets. With oil @ $60/bbl, there are fewer of these. Somewhat ironic because cheaper oil is usually good for plane mfrs.
Russia with its vast distances and oil wealth was supposed to be a growing source of business, but between the drop in the price of oil and the strained climate due to Ukraine, not so much anymore. Russia once had a considerable domestic aircraft industry (mostly geared to the military, but then again, a lot of US civil aircraft development was also military spinoff) but after the fall of the Soviet Union it was allowed to deteriorate.
Bombardier Aerospace may have bitten off more than it can chew with the C-series program and the stalled Learjet projects. I bet the newest Globals aren’t as attractive to the high end buyer as the Gulfstream 650. Bombardier is also getting badly beaten in the turboprop market by the French ATR series (cheaper yet capable enough).