DAVOS Switzerland Jan 22 Bombardier Inc
does not need to refinance to complete the development
of its $3.9 billion CSeries jet program, the Canadian train and
plane maker's chief executive said on Wednesday.
"We don't think we need to (do a debt refinancing). Last
year we raised C$2 billion (US$1.8 billion) in January. It's an
airplane development program. Sometimes we get criticized for
having too much liquidity, I said we need to plan for possible
delays," Chief Executive Pierre Beaudoin told Reuters in Davos
at the World Economic Forum.
"I think when we present our numbers in mid February, you
will see that we are in good shape to complete our program."
Investor concern over Bombardier funding intensified with
Bombardier's fourth CSeries delay last week and news on Tuesday
that it would cut 1,700 aerospace jobs as it strives to conserve
Development costs for the narrow-body CSeries could rise by
as much as $1 billion, at least one analyst estimated, at a time
when Bombardier is investing heavily in the all-new Learjet 85,
also delayed, and its Global 7000 and 8000 business jets.
The CSeries will not enter commercial service until the
second half of 2015 because it needs more testing, the company
said, pushing back an earlier target of late 2014.
Montreal-based Bombardier is expected to detail additional
costs from the delay with its fourth-quarter financial results
due on Feb. 13.