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Bombardier checking for customer exposure to Russia sanctions -Breaking

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© Reuters. FILEPHOTO: This is the Bombardier Bombardier (BD-700) aircraft pictured over Sion Airport in Switzerland, September 8, 2019. Picture taken September 8, 2019. REUTERS/Denis Balibouse/File Photograph

MONTREAL (Reuters). Bombardier, a Canadian planemaker, said Thursday that it’s checking to see if any customers are subject to sanctions after Russia invaded Ukraine.

After presenting the 2025 financial goals of Bombardier to investors, Eric Martel, Chief Executive Officer at Bombardier, stated that the supply chain has not been affected by the crisis. However, about 5%-6% of traditional deliveries come from customers within the region.

Martel stated that he didn’t know of customers facing sanctions but admitted there were developments every hour.

Martel said that he would check the sanction list and may be able to cancel some agreements, if any sanctions are placed on customers.

According to WINGX, data research company and consultant WINGX, corporate planemakers have capitalized on the pandemic-fueled boom of private aviation demand. Global business jet sector volumes are up by 12% this year in comparison with January 2019 and February 2019.

WINGX reported that Russia’s crisis had quickly replaced the pandemic as most important destabilizing factor within the European Region. WINGX also stated that leaders of the European Union said they will place new and broad-ranging sanctions on Russia in response to its invasion Ukraine.

Bombardier earlier stated that the company aims to accumulate $600,000,000 per annum for special projects like a new aircraft or repayment of debts as part its 2025 target.

Pure-play Corporate Planmaker has lost assets over the years following a 2015 cash crunch. In 2025, it is separatelly targeting $500 million of free cash flow.

Bombardier aims to double its revenues in the aftermarket segment to almost $2 billion by 2025, compared to 2021.

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