24-09-2013, 02:48 PM
One news article shows the situation is caught by surprise to management. The decision is made few months ago. It shows situation can deteriorate faster than the management thought.
BlackBerry bought private jet 2 months before loss announcement
LONDON — BlackBerry bosses bought a private jet worth more than US$20 million (S$25 million) two months before the firm announced a near US$1 billion loss and plans to lay off 4,500 staff.
The company, which has struggled to keep up with competition from Apple’s iPhone and Google Android-powered devices, bought a secondhand Bombardier Global Express jet in July, according to the Wall Street Journal, which scrutinised Canadian aircraft registry records.
It is not known how much BlackBerry paid for the jet, which can carry up to 19 passengers, but similar planes are advertised for between US$25 million to US$29 million.
The aircraft was delivered to executives as the company was running at losses of more than US$11 million a day. Last week the Canadian company said it lost between US$930 million to US$955 million in the three months to the end of August and warned its 12,700 staff that 40 per cent of them will lose their jobs.
“Several years ago, the company bought two medium-range Dassault aircraft,” BlackBerry said in a statement. “Earlier this year the company decided to sell both planes and replace them with one longer-range aircraft. The company considered several options and selected a used Bombardier aircraft, which was eventually delivered in July.”
BlackBerry has now decided to sell the plane. “In light of the company’s current business condition, the company has decided to sell that aircraft and will no longer own planes.” THE GUARDIAN
http://www.todayonline.com/tech/blackber...-staff-cut
BlackBerry bought private jet 2 months before loss announcement
LONDON — BlackBerry bosses bought a private jet worth more than US$20 million (S$25 million) two months before the firm announced a near US$1 billion loss and plans to lay off 4,500 staff.
The company, which has struggled to keep up with competition from Apple’s iPhone and Google Android-powered devices, bought a secondhand Bombardier Global Express jet in July, according to the Wall Street Journal, which scrutinised Canadian aircraft registry records.
It is not known how much BlackBerry paid for the jet, which can carry up to 19 passengers, but similar planes are advertised for between US$25 million to US$29 million.
The aircraft was delivered to executives as the company was running at losses of more than US$11 million a day. Last week the Canadian company said it lost between US$930 million to US$955 million in the three months to the end of August and warned its 12,700 staff that 40 per cent of them will lose their jobs.
“Several years ago, the company bought two medium-range Dassault aircraft,” BlackBerry said in a statement. “Earlier this year the company decided to sell both planes and replace them with one longer-range aircraft. The company considered several options and selected a used Bombardier aircraft, which was eventually delivered in July.”
BlackBerry has now decided to sell the plane. “In light of the company’s current business condition, the company has decided to sell that aircraft and will no longer own planes.” THE GUARDIAN
http://www.todayonline.com/tech/blackber...-staff-cut