New Bombardier chief executive Paul Tellier says his priority after taking office on 13 January will be to address "perception" issues that have caused the Canadian company's stock price to plummet over the past year. Analysts believe the appointment of Tellier could signal a restructuring at Bombardier.
Already a Bombardier board member, Tellier has been appointed to replace Robert Brown, who resigned unexpectedly. Bombardier says Brown asked to be relieved of his duties.
Tellier was chief executive of CN Rail, where he won respect for turning a bloated government-owned corporation into North America's most profitable railway.
According to Tellier, investors' concerns involve the balance sheet, corporate governance, and the long-lasting impact of 11 September on Bombardier's business and regional aircraft markets. He also hinted at a restructure, saying Bombardier had a strong product range and market share, but would "have to adjust the business plan". He plans to visit Bombardier's facilities in Canada, Europe and the USA immediately after taking office, beginning with the aerospace plants.
Tellier says his job as chief executive will be to "walk the fine line between producing results on a quarterly basis, showing the shareholder that the company is progressing, and maintaining some focus on the longer term".
Bombardier's share price fell with the sharp decline in business jet sales and concerns that United Airlines' bankruptcy could impact regional jet deliveries.
The Quebec Securities Commission is looking into allegations of insider dealing by two Bombardier board members. John Kerr and Jean Monty are accused of anticipating the 8% rise in the share price that occurred after Tellier's appointment was announced.Source: Flight International