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Troubled Bombardier Replaces CEO

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Key Takeaways:

  • Bombardier replaced CEO Pierre Beaudoin with outsider Alain Bellemare, a former United Technologies executive, amidst significant company challenges.
  • The CSeries regional airliner's development cost increased by $1 billion to $5.4 billion, leading Bombardier to plan for raising more capital.
  • To reallocate resources, Bombardier shelved its Learjet 85 jet program to focus on the troubled CSeries.
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Facing difficult challenges related to its CSeries regional airliner, Bombardier is turning to an outsider to head the company after CEO Pierre Beaudoin stepped down.

Bombardier announced that it has hired Alain Bellemare, a former top executive at United Technologies, to head the Canadian company. Beaudoin’s title has been changed to Executive Chairman. His father, Laurent Beaudoin, who led Bombardier for more than 30 years before becoming chairman, will retire.

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