Bombardier Inc’s Delta sale signals ‘beginning of the end’ of Boeing-Airbus duopoly:
From today's National Post:
Bombardier Inc wins $5.6-billion Delta order in key boost to CSeries program
“Just the other week, Bombardier Inc. let everyone see just how serious it is about joining the two leading OEMs and Embraer SA in the big pool, even if only in the shallow end for now.”
Moody’s called the CSeries a “formidable product offering,” and said Boeing and Airbus don’t have much to offer in the 100- to 150-seat market where the CSeries competes.
Bombardier likely won the Delta order for three reasons, according to Solomon: aggressive pricing, early availability of the jets and technical superiority.
“The mere presence of the CSeries will have at least an indirect (if not a direct) impact on the competitive dynamic between the two industry titans, causing them to sharpen their pencils even more on strategic campaigns,” Solomon wrote.
However, Moody’s concluded that Boeing and Airbus will retain “the lion’s share” of the large commercial aircraft market, with emerging competitors like Bombardier able to capture “only a relatively modest low-single-digit share.”