Bombardier Inc notches key Air Canada order as it announces 7,000 job cuts

Job cuts announced along with Air Canada order for largest model of Bombardier's new CSeries jets

Bombardier Inc. has ended its lengthy order drought for the CSeries even as it plans to cut 7,000 jobs worldwide.

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At the same time, Quebec agreed to drop a lawsuit against Air Canada, in return for the airline agreeing to conduct maintenance on the CSeries jets in the province

Bombardier hasn’t announced a new firm order for the CSeries in 15 months, and while the Air Canada order still needs to be firmed up with final documentation and customary closing conditions, it marks a key vote of confidence in the struggling program.

The order from Air Canada is also Bombardier’s first from a major North American customer.

“This is a fantastic win for Bombardier,” CEO Alain Bellemare said on a conference call Wednesday morning.

“We are now building great momentum to successfully compete and create superior value for airlines with the CSeries.”

Shares in Bombardier were up 20 per cent to $1.08 at midday. Shares in Air Canada were down 10 per cent to $7.56.