MONTREAL (CP) -- Aircraft manufacturer Bombardier Inc. faces a small speed bump as Delta Air Lines plans to park several jets and defer an order for three new aircraft because of the weak U.S. economy and rising fuel costs, an analyst said Thursday.
The CEO of the recently bankrupt No. 3 U.S. airline told employees and a New York aviation conference that Delta will reduce its capacity by another five per cent by August, increasing its domestic reduction to 10 per cent..
The decision will result in idling as many as 20 mainline aircraft and 20 to 25 regional jets. Delta has 132 regional jets, all made by Bombardier.
It also plans to reduce its aircraft spending by US$125 million in 2008 by deferring the order for three CRJ900s into 2009.
Analyst Benoit Poirier of Desjardins Securities said the moves are negative but not material for the Montreal-based aircraft and train manufacturer.
A strong order flow of late, including 41 firm orders for regional jets in three days, and a jet backlog representing 2.2 years of production will minimize the impact, Poirier wrote in a report.
He estimated Bombardier's order backlog for turboprops at 123 aircraft, or 1.9 years of production.
Delta Air Lines emerged from bankruptcy nearly a year ago following a 19-month reorganization.
Bombardier shares slipped seven cents to $5.28 Thursday morning on the Toronto Stock Exchange, with a 52-week range between $6.97 and $4.07.
