Engine shortages continue to hold up Bombardier’s production of new business jets, though the Montreal manufacturer has otherwise seen a noticeable easing of supply chain trouble.
That is according to Bombardier chief executive Eric Martel, who says one of Bombardier’s three engine suppliers is causing most of the headaches, though he declines to name the provider.
Supply chain delays have also led Bombardier to pare back financial expectations for 2025.
“We have seen significant improvement and less shortages across the board, but some continue to hurt us quit extensively,” Martel said on 1 May during Bombardier’s first-quarter earnings call. “It’s mainly from one engine provider.”
Bombardier’s three engine suppliers are GE Aerospace, Honeywell and Rolls-Royce.
Martel says two of those three are performing well with deliveries and that Bombardier is working close with the other to help address the problems.
“They are trying hard,” Martel says. “We need results… and we haven’t seen it yet.”
Bombardier on 1 May issued updated 2025 financial guidance, saying it expects to generate $500-800 million in free cash flow this year, down from a previous estimate, released last year, of more than $900 million in free cash flow this year.
Why the downward revision? “There’s a simple answer: supply chain,” says Bombardier chief financial officer Bart Demosky.
“We do have work being performed out of order still today, and largely due to engine availability on time, and that has an impact on our cost structure.”
Bombardier is not alone. Numerous aircraft manufacturers have been unable to meet production goals in recent years due to delayed availability of aircraft engines. The engine manufacturers have struggled in the post-pandemic era with too few skilled workers and part shortages of their own.
Bombardier competitor Gulfstream, for instance, missed its 2024 aircraft delivery goal due partly to shortages of Rolls-Royce Pearl 700s, which power its G700s and G800s, the company said.
