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Bombardier aims to outsource Q400 jobs

Posted on 11 Apr 2016 and read 3360 times
Bombardier aims to outsource Q400 jobsBombardier Inc (www.bombardier.com) is looking to shift some of the production for its Toronto-built Q400 turboprop planes to Mexico and China — even as it seeks a billion-dollar bail-out from Canadian taxpayers.

Sources familiar with the situation claim that the aircraft manufacturer’s proposal to shift assembly of wings and cockpits for the turboprop planes to facilities in Mexico and China respectively would result in the loss of 200 jobs at its Toronto factory, where those components are currently assembled.

A proposal by the company to out-source wing and cockpit production was rejected by workers at the Toronto plant in October, but the idea has not been shelved.

The aircraft manufacturer has had trouble over the past year winning new orders for commercial and business aircraft, which has hurt its revenues and profitability.

At a list price of about $31 million, the Q400 has a particular problem in that it is about 20-30% more costly than rival aircraft made by European joint venture ATR. Bombardier’s production plan for the Q400 assumes that it can maintain a global share of about 30% for the aircraft — while pushing for more.

The company is already sourcing significant volumes of aircraft parts from Mexico and China. Production at its aerospace plant in Queretaro state, north of Mexico City, includes main harnesses and electrical sub-assemblies for its business and commercial aircraft.

The facility also has mandates to manufacture structural components, such as the Q400’s “flight control work package” of rudder, elevator and horizontal stabiliser, according to Bombardier’s Web site. Meanwhile, China’s Shenyang Aircraft Corp has been supplying main components for the Q400 since a co-operation agreement was signed in 2006.