Bombardier Cancels $1.75 Billion of Jet Orders in Sales Shift
- Planemaker sees more profit in selling directly to customers
- Company taking $278 million charge in connection with changes
This article is for subscribers only.
Bombardier Inc. scrapped $1.75 billion of business-aircraft orders, saying it anticipates making more money by reselling them directly to customers.
The Canadian planemaker also said it was ending a four-decade relationship with distributor TAG Aeronautics as part of a change in its sales strategy. Bombardier will book a $278 million pretax charge in the fourth quarter due to its moves to cut out the middleman standing between itself and aircraft buyers.