PPRuNe Forums - View Single Post - Liberal Party wins, Bombardier wins
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Old 9th Aug 2016, 15:27
  #234 (permalink)  
tdracer
 
Join Date: Jul 2013
Location: Everett, WA
Age: 68
Posts: 4,421
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Willie
Boeing has annual revenue of ~100 Billion USD, with an operating margin approaching 10%. While certainly undesirable, they can weather the occasional multi-billion dollar hiccup. Yes, cashflow is a bit of a problem because they are dumping billions into three new aircraft programs at the same time (737 Max, 777X, and 787-10) but their credit rating is top notch and their stock is near historical highs.
Bombardier has annual revenue of ~20 Billion, with negative operating margin and lost ~$5 Billion last year and is expected to lose a similar amount this year. They readily admitted they had to sell to Delta below cost. How long to you think they can keep that up without large infusions of taxpayer funds? Even if they get their act together in the next six months, how long would it take to just earn back the $10 billion they lost in 2015-16? The entire C-series backlog is less than six months production for either Boeing or Airbus.

Oh, and Embrear is already complaining that the taxpayer infusions violate WTO rules...
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