Sales made two or three years ago mean very little when the buyers with so called "firm" orders actually have out clauses, or decide to forego their deposits, or in many cases with Bombardier customers: are in or nearing bankruptcy.
But let's put in some perspective: Bombardier blew through $1.5 billion in cash just through the first 6 months of this year. That is multiples of the
total profit expected over the entire VistaJet and NetJets deals combined, even if you assume all firm orders are delivered at list prices, with extremely healthy margins.
Yet Bombardier is now reportedly forced to sell business jets at steep discounts just to keep deliveries moving and get some revenue income.
The fact that they've had to slash Global Express production, cancel programs and implement huge layoffs is the cold hard reality of Bombardier's business jet division.
And just this morning we have more negative press on the CSeries prospects:
Bombardier Inc?s CSeries a tough sell as cheap oil revives used jet market | Financial Post
Can Bombardier still turn around the aerospace division? Sure. But they've put themselves in a very tough spot and will be lucky just to survive intact.