Bombardier Adjusts With The Times
Bombardier Chief Seeks Strategy Shift ...
The new boss at Bombardier has shifted the company's strategy to consolidation and cost-cutting from the rapid growth of its recent past, according to a newspaper report. The National Post reports that Bombardier chief executive Paul Tellier said his mandate is to "change the culture" at the conglomerate, which had previously focused on doubling revenue every five years. Tellier said Bombardier Capital, the company's financing arm, isn't a core activity and could eventually be sold. The newspaper said Tellier also hopes to reform the company's complex accounting practices and make them "simple enough so a high-school student could understand them." Tellier also indicated he wanted to ensure all board committees are chaired by outside directors as a means to make the company a model of corporate governance.
... As Company Eyes Niche With Europe Charter Jets
On March 26, Bombardier launched a fixed-rate chartered jet service in Europe aimed at travelers concerned about security on scheduled commercial airlines. Bombardier said security concerns, such as those sparked by war in Iraq, results in additional travel alternatives. "Business jets afford users more security and anonymity than commercial flying, and demand often increases in times of geopolitical instability," the company said in a statement. The launch of Bombardier Skyjet Europe will involve networking charter operators using some 50 Bombardier business jets, including the Learjet, production of which has been temporarily suspended since late last year on weak demand. Prices per hour on jets seating seven to 15 people begin at 4,100 euros ($4,400) and flights can be arranged within Europe and to points beyond, the company said.