Canadian aircraft maker Bombardier is exercising stricter control over its discretionary spending in its aerospace division in order to preserve funding for its C-Series and Learjet 85 aircraft development programmes.
IIn an internal memo sent to 35,000 employees of its aerospace division, the company said it needed to control spending through a range of measures, such as curbing non-essential hiring, travelling and cancelling offsite meetings.
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Bombardier expects to hold a review on the discretionary spending cuts with its employees on 15 January 2013.
It is currently spending an estimated $3.4bn to develop 110 to 149 seat C-Series aeroplanes.
The aircraft manufacturer plans to enter C-Series into service by 2013 as a part of its efforts to compete with Brazil’s Embraer in the smaller regional jet market and take on Airbus and Boeing.
Learjet 85, which is also expected to be launched in 2013, does not have an exclusive budget as it is currently included with other business jet development programmes.
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By GlobalDataLast month, Bombardier CEO Pierre Beaudoin expressed confidence that C-Series aircraft would have its first flight by the end of this year.
In the same month, the company announced it was conducting virtual flights with ‘Aircraft 0’ – on-the-ground integrated systems test and certification rig (ISTCR) for the C-Series aircraft.
Bombardier added that the avionics, electrical, flight control, fly-by-wire, hydraulic, landing gear and wiring systems had all been commissioned, and systems integration and communication had also been demonstrated.
As part of the test programmes, recently Pratt & Whitney’s geared turbofan engine – the PW1500G – for Bombardier’s C-Series aircraft completed its blade-out test.
Image: Bombardier plans to launch its C-Series aircraft into service by 2013. Photo: courtesy of Bombardier.
