Why Bombardier selling spree?
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Why Bombardier selling spree?
It's now almost every week that I see news about Bombardier selling their aviation assets. They sold aerostructures division to Spirit, they sold the wiring facility, Belfast, Morocco. Have I missed something? Is Bombardier getting out of aviation business?
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This is the fallout from Boeing's anti-competitive attempt to block the C-series sale to Delta which was ultimately ruled unfair.
https://www.defensenews.com/industry...as-bombardier/
Nothing wrong with competition, but when it gets this nasty, it is yet another reason not to fly on a Boeing. Unfortunately the ruling in favour of Bombardier was too late, the C-series had already been sold to Airbus.
https://www.defensenews.com/industry...as-bombardier/
Nothing wrong with competition, but when it gets this nasty, it is yet another reason not to fly on a Boeing. Unfortunately the ruling in favour of Bombardier was too late, the C-series had already been sold to Airbus.
This is the fallout from Boeing's anti-competitive attempt to block the C-series sale to Delta which was ultimately ruled unfair.
https://www.defensenews.com/industry...as-bombardier/
Nothing wrong with competition, but when it gets this nasty, it is yet another reason not to fly on a Boeing. Unfortunately the ruling in favour of Bombardier was too late, the C-series had already been sold to Airbus.
https://www.defensenews.com/industry...as-bombardier/
Nothing wrong with competition, but when it gets this nasty, it is yet another reason not to fly on a Boeing. Unfortunately the ruling in favour of Bombardier was too late, the C-series had already been sold to Airbus.
It has everything to do with the C-Series development nearly bankrupting Bombardier, with little hope that the program would become cash-flow positive for many years.
Turns out building and selling large commercial jetliners profitably is hard - really hard. So hard that only two companies in history have made money building and selling jetliners larger than 100 seats.
No, Bombardier bailing on the commercial airline business has little to do with Boeing's unfair trade complaint.
It has everything to do with the C-Series development nearly bankrupting Bombardier, with little hope that the program would become cash-flow positive for many years.
Turns out building and selling large commercial jetliners profitably is hard - really hard. So hard that only two companies in history have made money building and selling jetliners larger than 100 seats.
It has everything to do with the C-Series development nearly bankrupting Bombardier, with little hope that the program would become cash-flow positive for many years.
Turns out building and selling large commercial jetliners profitably is hard - really hard. So hard that only two companies in history have made money building and selling jetliners larger than 100 seats.
Although I would not put all the blame on Boeing for Bombardier's financial problems (because of the C Series), it had to do a lot with it.
Does anyone understand why the C Series wrecked Bombardier? They already had a series of successful airliners under their belt. Does the C incorporate a lot of new, untested tech?
Many cost overruns because of poor management for sure, new tech aircraft with new cockpit avionics, FBW and totally new engines that had major problems during their own development which actually delayed the aircraft for a year.
Which apparently is now Boeing's fault
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It would be really beneficial for all manufacturers to start installing Garmin avionics. By working with Garmin on certification for larger aircraft types they would save a fortune and have highly capable systems. Instead they choose to go their own way or pay Rockwell/Honeywell billions on proprietary tech that is so far behind the times. This would be a massive cost and time saving for training pilots and allow the industry to create fit for purpose solutions without worrying about compatibility. What Garmin has done in terms of avionics standardisation is way better than Boeing/Airbus or Rockwell/Honeywell. It's a shame these relationships are politically bound together.
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This would be a massive cost and time saving for training pilots and allow the industry to create fit for purpose solutions without worrying about compatibility. What Garmin has done in terms of avionics standardisation is way better than Boeing/Airbus or Rockwell/Honeywell.
You're joking, right? Let's say Airbus use Garmin avionics in their next product. This would probably kill off any chance of a fairly simple CCQ from other Airbus FBW aircraft and vice versa. Don't see where the cost savings would come from...
So, a lack of MBAs and the transition away from steam-power broke Bombardier. OTOH, the opposite is true for Boeing
Last edited by Maninthebar; 3rd Jan 2020 at 07:03. Reason: insert smiley
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The C series was overpriced (why buy a hundred seater for the same price as a 37/320?) and the company couldn’t make a meaningful sale, no rev coming in. The US scope clause ruled out regional airlines who had done previous business with the company, these same previous partners felt their product (CRJ) had been shelved and neglected (true) and left for the far superior ERJ line of aircraft.
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the C series was never meant to compete with regional aircraft. It filled a much needed space. The -300 has no comparable, and the -500 will compete with the 737 market with a new aircraft.
E2's are old designs rehabbed. Not really competition and not really selling.
E2's are old designs rehabbed. Not really competition and not really selling.
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The C series was overpriced (why buy a hundred seater for the same price as a 37/320?) and the company couldn’t make a meaningful sale, no rev coming in. The US scope clause ruled out regional airlines who had done previous business with the company, these same previous partners felt their product (CRJ) had been shelved and neglected (true) and left for the far superior ERJ line of aircraft.
- The A325 as an A320+, long enough for 200 pax in LCC single-class layout
- The A327, an A321 with a new CFRP wing and centre-wing-box allowing a taller undercarriage, and
- The A329, a stretched A321 with room for 250 pax in 2- or 3-class layout and the new wing (the taller legs to make this variant OK for tail-strike protection)
And launch the A220-500, to cover the gap at the bottom of the new range caused by the absence of replacements for the A319neo and A320neo
Keep producing the A320neo, A321neo and A321XLR (at ever-increasing price, of course) for as long as airlines want to value commonality with their existing fleets above anything else.
Kick Boeing while they are down, make them either commit to an FSA half an engine generation too soon, or be faced with a completely uncompetitive B737MAX for the best part of a decade
The A320 flight deck has considerable commonality with the A330 and A350, and there are literally thousands of A320 series aircraft currently flying worldwide.
Why in the world would Airbus throw that away to base a new narrow body around the C-Series?
Why in the world would Airbus throw that away to base a new narrow body around the C-Series?
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I appreciate the responses, but I must have formulated my question unclearly. I understand that Bombardier is moving out of the commercial aircraft segment. And I understand why... or I think I do. But even for their private jets they still need aerostructures and wiring. And they sold both of those. Or do they have more somewhere? It looks like a fire sale of all aviation assets. Is Bombardier closing its aviation business altogether? Or just shrinking and concentrating it?
They might just desperately need the money?
And who nows what A220 rate increases are brewing behind the scenes? This might be the same supply chain getting readied and needing expansion, therefore requiring major investments and new buyers?
And who nows what A220 rate increases are brewing behind the scenes? This might be the same supply chain getting readied and needing expansion, therefore requiring major investments and new buyers?