Bombardier cuts 1,200 jobs in train unit

Bombardier Inc (BBDb.TO: Quote) will delay the inaugural flight of its all-new C-Series jetliner by six months, the plane and train maker said on Wednesday, as it reported weaker-than-expected quarterly revenue and said it would cut 1,200 jobs in its rail unit.

The Montreal-based company said it was making good progress with its $3.4 billion C-Series development program, but supplier issues forced it to delay the first flight from year-end to June 2013, a move widely expected by analysts.

“We’ve been waiting for the shoe to fall,” said Scott Rattee, analyst at Stonecap Securities Inc.

“The C-Series remains a going concern. They’ve bought themselves a little bit of time … It certainly has not slipped into the ‘Oh no’ zone yet.”

Bombardier, the world’s No. 3 plane maker, said in August it would consider itself on schedule if it was within three to five months of its first-flight target. Many analysts said that a six-month extension would not be worrisome, but a longer delay would cause concern…

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via Bombardier delays C-Series flight, cuts train unit jobs | Business | Reuters.