The Canadian plane maker Bombardier has reported a lower than expected adjusted net loss and said it expects to finish the year with improved operating margins in all of its businesses.
The company raised the lower end of its full-year forecast for earnings before interest and tax(ebit) to US$350 million from $200m, while maintaining the upper end at $400m.
Montreal-based Bombardier forecast revenue of $16.5 billion for the year, compared with its previous forecast of $16.5bn to -$17.5bn, after the company in September halved the 2016 delivery forecast for its CSeries mid-range aircraft.
The CSeries programme, which has been hit by production delays and cost overruns, has received a $745m investment from the Quebec provincial government.
Canada’s federal government has agreed in principle to invest in the company’s CSeries programme, but a deal is yet to be finalised.
Bombardier said last month it would cut 7,500 jobs, mostly in its train-making division, the second round of layoffs this year, following extended delays and budget overruns in its aerospace business.
Bombardier delivered 36 business jets in the quarter ended September 30, compared with 43 in the same period last year. It delivered 16 commercial aircraft, two more than a year earlier.
The company’s net loss narrowed to $94m, compared with $4.88bn a year earlier. Revenue fell nearly 10 per cent to $3.74bn.
Bombardier booked non-cash charges of about $4.4bn on its CSeries and Learjet 85 programs a year earlier.
The company posted an adjusted loss of $10m, compared with analysts’ average estimate of a loss of $92.8m, according to Reuters.
It broke even on a per share basis. Analysts had expected a loss of 3 cents per share.
Instability
Business-jet deliveries are dropping and will not rebound before 2018, according to a benchmark forecast of corporate aircraft demand over the next decade.
Honeywell International lowered its annual long-term forecast for private jets by 7 per cent, or 600 aircraft, as emerging markets suffer from low commodity prices and the US economy limps along at a slow pace.
Some 8,600 new planes are expected to be delivered from 2016 through 2026, down from 9,200 in last year’s outlook, according to a survey of more than 1,500 business-jet operators worldwide. Sales of those aircraft are estimated at $255bn, down from $270bn in the previous study.
“We have a fair amount of uncertainty and instability in the economy and political environment around the world right now,” said Charles Park, the director of market analysis at Honeywell’s aerospace unit.
The number of used jets for sale that are less than five years old has increased and prices continue to drop, which drags on demand for new aircraft, Mr Park said. The introduction of new models from manufacturers such as Gulfstream and Bombardier in 2018 should stimulate sales, he said.
Deliveries
Worldwide business-jet deliveries will decline to 645 this year and to 625 next year before rebounding back to 645 in 2018, according to a report by Seth Seifman, an analyst with JP Morgan. Deliveries had increased in 2014 to 689 and remained the same last year. They hit an all-time high of 1,136 in 2008.
Flexjet, an operator owned by Directional Aviation, increased its order for Bombardier Challenger 350s to 40 last year. A year earlier, the company agreed to purchase 50 Gulfstream jets manufactured by General Dynamics, including a G650 that will be delivered this year. It also is taking deliveries of Legacy 450s made by Brazilian plane maker Embraer.
In the end, it will take faster economic growth to rev up sales of new business jets. The need for flying privately increases when companies are growing quickly and executives must travel to multiple cities in a hurry, Vick said.
“People are going to be very, very certain that marketplaces are there before they double-down and expand rapidly,” Vick said. “That’s the mode that everybody is in and I think it’s appropriate.”
The rise of private jet-sharing programmes has also crimped sales. The general aviation industry is undergoing a major shakeup as new business models attempt to match idle aircraft with passengers, many of whom now cannot afford their own plane. Membership companies, ride-sharing programmes, on-demand charter providers and start-ups claiming to be the Uber of private aviation are all looking to introduce more people to the convenience of flying without the hassle of commercial airports.
Super-wealthy
“Unfortunately for airplane manufacturers, these new programs aren’t out buying a lot of new jets,” said Brian Foley, a business-aircraft consultant. “They’re just trying to use existing assets out there and get more utilisation out of those parked airplanes.”
Delivery declines contrast with an increase of more than 5 per cent for flight hours for the charter market in the October to September period for the past three years, according to Argus International.
The increase in charter activity is partly because of the new options that have opened up the market beyond super-wealthy customers, said Brad Stewart, the chief executive of XOJet, which operates a fleet of 41 preowned aircraft for hire.
“The democratisation of private aviation is a huge theme, and it’s here to stay,” he said.
“That’s really taking an access point of private aviation and bringing it from the top 10 per cent of the top 1 per cent down to the merely rich.”
* Agencies
business@thenational.ae
Follow The National's Business section on Twitter
What are the influencer academy modules?
- Mastery of audio-visual content creation.
- Cinematography, shots and movement.
- All aspects of post-production.
- Emerging technologies and VFX with AI and CGI.
- Understanding of marketing objectives and audience engagement.
- Tourism industry knowledge.
- Professional ethics.
The Breadwinner
Director: Nora Twomey
Starring: Saara Chaudry, Soma Chhaya, Laara Sadiq
Three stars
One in four Americans don't plan to retire
Nearly a quarter of Americans say they never plan to retire, according to a poll that suggests a disconnection between individuals' retirement plans and the realities of ageing in the workforce.
Experts say illness, injury, layoffs and caregiving responsibilities often force older workers to leave their jobs sooner than they'd like.
According to the poll from The Associated Press-NORC Centre for Public Affairs Research, 23 per cent of workers, including nearly two in 10 of those over 50, don't expect to stop working. Roughly another quarter of Americans say they will continue working beyond their 65th birthday.
According to government data, about one in five people 65 and older was working or actively looking for a job in June. The study surveyed 1,423 adults in February this year.
For many, money has a lot to do with the decision to keep working.
"The average retirement age that we see in the data has gone up a little bit, but it hasn't gone up that much," says Anqi Chen, assistant director of savings research at the Centre for Retirement Research at Boston College. "So people have to live in retirement much longer, and they may not have enough assets to support themselves in retirement."
When asked how financially comfortable they feel about retirement, 14 per cent of Americans under the age of 50 and 29 per cent over 50 say they feel extremely or very prepared, according to the poll. About another four in 10 older adults say they do feel somewhat prepared, while just about one-third feel unprepared.
"One of the things about thinking about never retiring is that you didn't save a whole lot of money," says Ronni Bennett, 78, who was pushed out of her job as a New York City-based website editor at 63.
She searched for work in the immediate aftermath of her layoff, a process she describes as akin to "banging my head against a wall." Finding Manhattan too expensive without a steady stream of income, she eventually moved to Portland, Maine. A few years later, she moved again, to Lake Oswego, Oregon. "Sometimes I fantasise that if I win the lottery, I'd go back to New York," says Ms Bennett.
Killing of Qassem Suleimani
THREE
%3Cp%3EDirector%3A%20Nayla%20Al%20Khaja%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Jefferson%20Hall%2C%20Faten%20Ahmed%2C%20Noura%20Alabed%2C%20Saud%20Alzarooni%3C%2Fp%3E%0A%3Cp%3ERating%3A%203.5%2F5%3C%2Fp%3E%0A
TEACHERS' PAY - WHAT YOU NEED TO KNOW
Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:
- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools
- average salary across curriculums and skill levels is about Dh10,000, recruiters say
- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance
- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs
- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills
- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month
- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
SUE%20GRAY'S%20FINDINGS
%3Cp%3E%22Whatever%20the%20initial%20intent%2C%20what%20took%20place%20at%20many%20of%20these%20gatherings%20and%20the%3Cbr%3Eway%20in%20which%20they%20developed%20was%20not%20in%20line%20with%20Covid%20guidance%20at%20the%20time.%3C%2Fp%3E%0A%3Cp%3E%22Many%20of%20these%20events%20should%20not%20have%20been%20allowed%20to%20happen.%20It%20is%20also%20the%20case%20that%20some%20of%20the%3Cbr%3Emore%20junior%20civil%20servants%20believed%20that%20their%20involvement%20in%20some%20of%20these%20events%20was%20permitted%20given%20the%20attendance%20of%20senior%20leaders.%C2%A0%3C%2Fp%3E%0A%3Cp%3E%22The%20senior%20leadership%20at%20the%20centre%2C%20both%20political%20and%20official%2C%20must%20bear%20responsibility%20for%20this%20culture.%C2%A0%3C%2Fp%3E%0A%3Cp%3E%22I%20found%20that%20some%20staff%20had%20witnessed%20or%20been%20subjected%20to%20behaviours%20at%20work%20which%20they%20had%20felt%20concerned%20about%20but%20at%20times%20felt%20unable%20to%20raise%20properly.%3C%2Fp%3E%0A%3Cp%3E%22I%20was%20made%20aware%20of%20multiple%20examples%20of%20a%20lack%20of%20respect%20and%20poor%20treatment%20of%20security%20and%20cleaning%20staff.%20This%20was%20unacceptable.%22%C2%A0%3C%2Fp%3E%0A
SHADOWS%20AND%20LIGHT%3A%20THE%20EXTRAORDINARY%20LIFE%20OF%20JAMES%20MCBEY
%3Cp%3EAuthor%3A%20Alasdair%20Soussi%3C%2Fp%3E%0A%3Cp%3EPages%3A%20300%3C%2Fp%3E%0A%3Cp%3EPublisher%3A%20Scotland%20Street%20Press%3C%2Fp%3E%0A%3Cp%3EAvailable%3A%20December%201%3C%2Fp%3E%0A
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Know your camel milk:
Flavour: Similar to goat’s milk, although less pungent. Vaguely sweet with a subtle, salty aftertaste.
Texture: Smooth and creamy, with a slightly thinner consistency than cow’s milk.
Use it: In your morning coffee, to add flavour to homemade ice cream and milk-heavy desserts, smoothies, spiced camel-milk hot chocolate.
Goes well with: chocolate and caramel, saffron, cardamom and cloves. Also works well with honey and dates.
Getting there
The flights
Flydubai operates up to seven flights a week to Helsinki. Return fares to Helsinki from Dubai start from Dh1,545 in Economy and Dh7,560 in Business Class.
The stay
Golden Crown Igloos in Levi offer stays from Dh1,215 per person per night for a superior igloo; www.leviniglut.net
Panorama Hotel in Levi is conveniently located at the top of Levi fell, a short walk from the gondola. Stays start from Dh292 per night based on two people sharing; www. golevi.fi/en/accommodation/hotel-levi-panorama
Arctic Treehouse Hotel in Rovaniemi offers stays from Dh1,379 per night based on two people sharing; www.arctictreehousehotel.com
Our Time Has Come
Alyssa Ayres, Oxford University Press
House-hunting
Top 10 locations for inquiries from US house hunters, according to Rightmove
- Edinburgh, Scotland
- Westminster, London
- Camden, London
- Glasgow, Scotland
- Islington, London
- Kensington and Chelsea, London
- Highlands, Scotland
- Argyll and Bute, Scotland
- Fife, Scotland
- Tower Hamlets, London
Conservative MPs who have publicly revealed sending letters of no confidence
- Steve Baker
- Peter Bone
- Ben Bradley
- Andrew Bridgen
- Maria Caulfield
- Simon Clarke
- Philip Davies
- Nadine Dorries
- James Duddridge
- Mark Francois
- Chris Green
- Adam Holloway
- Andrea Jenkyns
- Anne-Marie Morris
- Sheryll Murray
- Jacob Rees-Mogg
- Laurence Robertson
- Lee Rowley
- Henry Smith
- Martin Vickers
- John Whittingdale
UAE currency: the story behind the money in your pockets
Keep it fun and engaging
Stuart Ritchie, director of wealth advice at AES International, says children cannot learn something overnight, so it helps to have a fun routine that keeps them engaged and interested.
“I explain to my daughter that the money I draw from an ATM or the money on my bank card doesn’t just magically appear – it’s money I have earned from my job. I show her how this works by giving her little chores around the house so she can earn pocket money,” says Mr Ritchie.
His daughter is allowed to spend half of her pocket money, while the other half goes into a bank account. When this money hits a certain milestone, Mr Ritchie rewards his daughter with a small lump sum.
He also recommends books that teach the importance of money management for children, such as The Squirrel Manifesto by Ric Edelman and Jean Edelman.
Which honey takes your fancy?
Al Ghaf Honey
The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year
Sidr Honey
The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest
Samar Honey
The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments
