Multimillion dollar contract to save jobs at troubled Bombardier plant

Troubled aircraft manufacturer Bombardier Aerospace Belfast yesterday secured the remaining jobs at the plant with a deal worth several hundred million dollars.

The company, formerly known as Shorts, is to play a key role for its parent Bombardier Aerospace in delivering a contract for 275 aircraft to US Airways in Arlington, Virginia.

Bombardier yesterday announced that it had agreed to deliver 275 of its CRJ200 and CRJ700 regional aircraft to the airline over the next two years. The deal is worth a potential $7 billion (€6.05 billion) to the group as a whole.

Bombardier Aerospace Belfast general manager, Mr Michael Ryan, would not reveal the precise value of the deal to the Northern Irish plant. He did say that it was "in the low hundreds of millions of dollars".

Mr Ryan said that the deal would not create extra jobs at the facility, but said it would secure those left.

Bombardier axed 1,800 jobs over the last two years as it implemented a restructuring plan designed to save the business, from falling victim to the current slump in the aviation industry.

Two years ago, the company employed 7,600 workers, but now has 5,800. Of the jobs lost, 1,300 were permanent.

"This will fill in the gaps and consolidate our position," Mr Ryan told The Irish Times. "But it will not create extra jobs, the best it will do will be to secure the jobs that are already here." Around 3,000 of the workers will be directly involved in producing CRJ components.

The Belfast plant will manufacture forward and centre fuselages and engine and wing components for the CRJ craft.

Bombardier CRJ200s and CRJ700s regional aircraft are in the 50- to 100-seat range. They are generally used for short haul services between medium-sized and small population centres in the mid-western US.

Mr Ryan explained that the contract was particularly significant as the market for this type of craft is maturing. "This will be one of the last of the bigger orders," he said. The buyer, US Airways is America's fifth largest airline. The contract will also benefit Waterford company, PPI adhesives, which produces various resins that Bombardier uses in aircraft manufacturing.

According to Bombardier, it buys around £34,000 sterling (€47,330) worth of PPI products a-year. An estimated two-thirds of this is used in the CRJ craft.

Bombardier Aerospace Belfast has been working on developing a supplier base north and south of the Border.

Mr Ryan said the company has been working closely with Enterprise Ireland to identify potential suppliers.

He said the company spends £60 million sterling on goods and services from the Republic. Its biggest supplier is Limerick-based Wire Weavers.