Bond market sceptical about Bombardier

Toronto

BOMBARDIER Inc's efforts to rein in costs to develop its CSeries jetliner are meeting with scepticism in the bond market, which has helped fund the most expensive project in the company's 72-year history.

Default protection on Bombardier bonds climbed as much as 19 basis points last week after the planemaker said it will slash 1,800 jobs from its aerospace business, whose chief is retiring while the unit is split in three. It's the second round of layoffs this year after Bombardier postponed the commercial debut of the CSeries, its biggest-ever model, for a fourth time.