PPRuNe Forums - View Single Post - Bombardier offers majority stake in C Series to Airbus
Old 7th Oct 2015, 20:05
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peekay4
 
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Don't be so certain. At the time of first flight of the prototype CRJ in 1991 Bombardier had one firm order (from LH) for thirteen aircraft. They are now closing on 2,000 units produced as the CRJ created a new segment by filling a hole in the market.

The same will happen with the C Series - it will fill a significant gap between 100 seats and 150 seats.
One of Bombardier's problems focusing on the C Series is that they've effectively neglected the CRJ, conceding the regional market to Embraer and newcomer Mitsubishi.

In fact, Bombardier is likely losing money on both the CRJ and Q400 at current manufacturing levels, according to Bank of Montreal analysis. Firm orders mean nothing if they are selling at a loss!

Bombardier has talked about "re-investing" in the regional market, but frankly: 1) they don't have the money; 2) at this point, that might be throwing good money after bad. They might need drastic restructuring instead.

Bombardier created the C Series with an economic assumption of oil at $150/barrel. It's now at $50/barrel and could stay near this level for years.

Is Bombardier dead? No, but they're not likely to survive unscathed.
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