Bombardier Aerospace today blamed the ongoing global economic crisis for the net negative orders in its business aircraft deliveries during fiscal year 2009-10 ended Jan. 31.

On the business aviation side, the Canadian manufacturer delivered 176 aircraft and posted 85 net negative orders. The commercial side saw 121 deliveries with 88 net orders, while its amphibious unit delivered five aircraft with eight net orders. The grand total for the year was only 11 aircraft orders, including cancellations, compared with 367 orders, net of cancellations, for the previous fiscal year.

Bombardier delivered 176 business jets in FY 2009-10, compared with 235 for the same period last year, which the company said was in line with the 25 percent drop in business aircraft delivery guidance provided in 2009. Looking ahead, business aircraft deliveries for the current fiscal year 2010/11 are expected to be approximately 15 percent less than fiscal year 2009/10.

The year began with Bombardier announcing it would deliver 10 percent fewer business jets – with production cuts in the Learjet and Challenger lines -- in its fiscal 2009/10, saying the global economic slowdown caused an “unusual level” of order deferrals and cancellations. As a result, the manufacturer cut 1,360 jobs, or 4.5 percent of its total worldwide labor force of 30,000 employees at its Montreal, Belfast and Wichita plants.

In April, Bombardier said it was cutting another 3,000 jobs, or 10 percent of its work force, including 444 non-union and management jobs and 1,831 union jobs. The following month, debt - watcher Fitch Ratings gave the company a BB+ rating and downgraded its outlook from stable to negative after concerns about the impact of a sharp decline in demand for business jets on Bombardier’s aerospace business and free cash flow.

But despite the sharp economic downturn in 2009, Bombardier’s Business Aircraft Market Forecast, released in June, forecast that business aircraft manufacturers will still deliver some 75 percent more aircraft in the next 10 years than it did in the previous 10-year period. Bombardier predicted a market for 11,500 aircraft that will generate $256 billion in revenue from 2009-2018. This compares with 6,500 business aircraft valued at $122 billion delivered between 1999 and 2008, it added.

“The global economic crisis which began in 2008 continued to impact the civil aviation industry throughout 2009 as conditions remained challenging,” said Guy C. Hachey, President and COO of Bombardier Aerospace. “While indicators of market stabilization have started to emerge, we remain cautious as economic uncertainty still prevails. We have taken significant steps to strengthen our operations and continue to invest significantly in future programs. We strongly believe that through flawless execution and by creating a loyal customer base for our products and services, we will emerge from this crisis a stronger and more efficient company.”