Bombardier Business Aircraft continues to restructure and strengthen its business model in order to improve long-term profitability. For this purpose, the unit has completed the initiative to increase the number of direct market sales channels, completing the work with third-party sales representatives as well as restructuring the commercial agreements with customers. As a result, in the fourth quarter of 2015. Bombardier will have to pay a pre-tax special charges of $ 278 million., Of which approximately $ 145 million. Non-cash funds. Cash payments in the 4th quarter of 2015 was approximately $ 50 million., And the remainder will be paid in 2016. "We are changing our sales strategy to focus on direct sales channels," - says David Kolil, president of Bombardier Business Aircraft. "This, combined with our restructuring plan, will increase long-term profitability." In accordance with changes in sales strategy, Bombardier terminated relationships with sales representatives and distribution agreements. The company will be directly responsible for sales activities in the regions, enhancing their existing sales force, which will establish a direct relationship with the operators. Bombardier Business Aircraft also completed the restructuring of certain commercial agreements with customers. This led to the cancellation of 24 firm orders, which had an aggregate value of $ 1.75 billion. Price list for 2015, and the abolition of 30 optional orders. The manufacturer expects to sell those positions with higher profitability.
Bombardier will issue consolidated financial statements for the fourth quarter and fiscal year 2015 February 18, 2016.
