Bombardier on Thursday became the latest planemaker to disclose an exemption from Canadian sanctions on Russian titanium, as Canada defended its decision to grant a partial reprieve from recent measures imposed over the war in Ukraine.
On Tuesday, Reuters first reported that Airbus had won a waiver from a new Canadian ban on Russian titanium, weeks after Ottawa added supplier VSMPO-AVISMA to a list of entities banned for alleged ties to Russia’s military-industrial complex.
But like others in the supply-stretched industry, Bombardier burned more cash than expected after boosting inventory to support increased production.
“While we continue to require more working capital investment in the near term, we will be well-placed in the second half of the year and well beyond,” Martel told analysts.
The company is ramping up production this year of its super mid-sized Challenger jets which seat about 10 and will expand manufacturing of its large-cabin Global aircraft in 2024.
It is facing a challenge from rival General Dynamics’ Gulfstream, which is starting deliveries of its flagship G700 luxury jet that was certified last month.
Bombardier reported 20 deliveries in the first quarter, down from 22 a year earlier but said it remains on track to hand over 150-155 jets this year. Revenue fell 12% due to a delivery mix favoring Challengers which are priced below the Globals.
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