Bombardier sever ties with buyers due to Russian sanctions

Julian Arsenal
Press

Due to the high demand in commercial aviation, new buyers have suddenly raised their hands to buy these aircraft which are available. While the situation is “manageable”, it’s sensitive, “said Eric Martel, Bombardier’s president and chief executive officer.

“I have a dozen lawyers working full time on this file in Bombardier to make sure we’re doing anything to meet the sanctions,” he told the media scrum, adding that “adjustments” still needed to be made. .

Canada has increased sanctions on Russia since the military invasion of Ukraine. Currently targeting more than 700 individuals and organizations. The list includes 14 oligarchs and financiers close to Vladimir Putin’s regime.

When questioned several times, Mr. Martel declined to specify the number of cancellations, related models as well as buyers who have severed company ties. The latter mentions the terms of privacy, along with the aircraft purchase agreements.

“I can no longer sell airplanes. Those who come under the restrictions are limited to saying that it is Mr. Martel. We can handle it. ⁇

Bombardier followed in the footsteps of several companies by overthrowing Russia on March 4. The aircraft manufacturer said it had suspended all of its operations with Russian customers. This includes after-sales services such as the replacement of replacement parts.

Business jets belonging to Russian billionaires are often registered outside the country and their ownership is pre-owned by companies, which is a very critical part.

“When we deliver spare parts, we need to make sure we know who the end user is,” he said. Said Martell. We put in all the action. When in doubt, we will not provide the piece. ⁇

About 5,000 private jets of Bombardier are in service, with about 250 Russian customers, according to the company.

Premature departure

Bombardier’s Big Boss also had to comment on something he did not want to discuss publicly: renewing the employment contract of about 1,800 union members distributed at the Challenger Assembly plant in Dorval, as well as at the Montreal plant in St. Lorent.

The International Association of Machinists and Aerospace Workers (IAMAW) has been embroiled in controversy over bulletin cards distributed to its members earlier in the day on Wednesday. The union alleges that the employer rejected “virtually all” wage demands, in addition to demanding “significant millions” of “significant setbacks”.

When asked about the problem, Mr. Martell tried to calm things down.

“I think it’s too early to talk about the status of these negotiations as we have not yet submitted an offer,” he replied. I spend a lot of time in factories, I talk to employees two or three times a week. I have no worries right now. ⁇

According to union representitives, the new retirement plan is targeted at lower paid employees, leaving higher paid employees to enjoy the same benefits as before.

Due to disagreement, IAMAW asks management to offer “its best cash offer” to members without agreement from December 4. The union hopes this will send a clear message to the employer.

“On March 15, the employer informed us in a bulletin that La Press could be contacted that he was rejecting almost all union demands for wage conditions.

Mr. Martell considered the argument a “rumor.”

Last July, operations were hampered by a few days ‘walkout at the Bombardiers’ Toronto Downsview plant. The company has entered into an agreement with Uniforms, which represents the approximately 1,200 employees who will assemble the Global Family of Aircraft.