PPRuNe Forums - View Single Post - Bombardier offers majority stake in C Series to Airbus
Old 2nd Feb 2016, 20:55
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peekay4
 
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Idiotic "orphan" remarks by any Airbus executive, or anyone for that matter, is not only uncalled for but simply unprofessional. These comments are made simply in recognition of the threat Bombardier poses to a very small but significant sector of the passenger aircraft market. That in itself must be a compliment.
I believe the "orphan" comments were made in part to reduce Bombardier's ability to cut prices.

An "orphan" product will immediately lose resale value. If potential clients are concerned of this risk, then Bombardier must offer them residual value guarantees.

These guarantees represent liabilities to Bombardier and cost them money whether they are eventually exercised or not. It's very likely that Bombardier are being asked to provide significant monetary guarantees to potential CSeries customers.
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