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Bombardier has announced it plans to sell its Q400 turboprop passenger line to a subsidiary of Longview Aviation Capital Corporation and to cut 5,000 jobs as part of an effort to streamline operations and reduce costs.
- According to Bombardier, the sale includes not only the Q400 program but also all assets and intellectual property for other Dash 8 models – comprising the -100, -200 and -300. These are to be sold to Viking Air, the manufacturer of the revived DHC-6 Twin Otter program, for about $300 million.
- Bombardier is also selling a unit that provides flight and technical training for business aircraft to Canadian manufacturer CAE for $800 million.
- Both transactions are expected to close by the second half of 2019, following the usual regulatory approvals.
- About 2,500 Bombardier workers will be laid off in Quebec and 500 in Ontario while about 2,000 cuts will be overseas by 2021.
- These measures come as a part of a five-year plan to rein in costs, focus on rail and business jets, and reduce debt.