The Future of Bombardier

[Amare]

Nobody said they'll do this for charity. They'll be paid for this work.

Well at this point they need every cent they can get, at least it's from something that would benefit Canadians for once. Something we cant say they've done a lot of in recent history.

As I said here Beaudoin did a great job for Bombardier and its shareholders. No one forced Ottawa, Ontario and Quebec to give it taxpayer freebies.

No one forced the governments to give them money you're correct, but you have to ask yourself: what led the company to wanting to sell of their assets in the first place, and why did they consistently beg the money for cash? There's a common link in the answer.

 

[Admiral Beez]

What led the company to wanting to sell of their assets in the first place, and why did they consistently beg the money for cash?

ROI on depreciating assets; due to growing governmental resistance to financial support and sharper competition.

 

[Amare]

^And the reason those aforementioned assets were depreciating was due to a lack of proper investment to enhance their once existing product line. Neglecting all their product lines in favor of pouring all their resources into the C-Series is what got them into the current life support stage that they're in right now.

Competition increases everyday, but if you dont innovate you'll get left behind. That's exactly what happened with Bombardier. Let's remember, the federal government wanted to restructure Bombardier and their management at one point, but couldnt because the family still hand their grimy hands all over the company.

 

[Admiral Beez]

^And the reason those aforementioned assets were depreciating was due to a lack of proper investment to enhance their once existing product line. Neglecting all their product lines in favor of pouring all their resources into the C-Series is what got them into the current life support stage that they're in right now.

Competition increases everyday, but if you dont innovate you'll get left behind. That's exactly what happened with Bombardier. Let's remember, the federal government wanted to restructure Bombardier and their management at one point, but couldnt because the family still hand their grimy hands all over the company.

I agree with everything you state here. That said, Bombardier did what was right for the family owners, they bought distressed assets, used other peoples' money to grow them, and then sold them, reaping the profits for the family.

I doubt Thunder Bay will close its plant, and the new owners may very well expand it. Viking will do well with the prop planes.

 

[kEiThZ]

Neglecting all their product lines in favor of pouring all their resources into the C-Series is what got them into the current life support stage that they're in right now.

The C-Series plan was just fine. The delays it went through were normal. A good chunk of them weren't even Bombardier's fault. Pratt added a lot of risk with a new engine. It was their simultaneously massive boondoggles on the Global Express and Learjet that sank them. Not too many folks outside aviation know how badly run and costly these other programs were:

Learjet 85 - Wikipedia

en.wikipedia.org

Bombardier Global 7500 - Wikipedia

en.wikipedia.org

There was also some serious strategic errors. As the saying goes, "You come at the King, you best not miss." Launching with the CS100 and CS300 was a massive mistake. Airbus and Boeing both knew the wing was sized to take on their bread and butter 150/160 seat birds (737-800/Max 8 and 320/320NEO). They knew what awaited them down the pipe and decided to kill the program in the crib. Had Bombardier launched with the CS500 and CS300, it could have easily had over 500 orders by entry-into-service. Believing that launching with a 110 seat bird meant that Airbus and Boeing wouldn't notice is just plain dumb. And that is a pure management mistake. Nothing at all to do with the fantastic engineering in the CSeries. Airbus is going to end up selling thousands of these airplanes, especially after they build the CS500/A220-500.

 

[AlbertC]

Bombardier Sees Demand for Luxury Jets Crumbling by at Least 30%

Bloomberg May 7, 2020

Bombardier Inc., which is betting its future on making private jets, is bracing for a drop of at least 30% in demand for luxury planes as the coronavirus pandemic hits this year’s sales.The company’s business-aircraft division already suffered “a significant slowdown in order intake” in March, Bombardier said in a statement Thursday as it reported results. While the order book for the marquee Global 7500 is “largely intact,” the manufacturer is cutting spending and deferring discretionary investments to shore up profitability at lower production levels.The weak demand outlook is raising the pressure on Bombardier’s new chief executive officer, Eric Martel, as the company exits its operations in commercial planes and rail equipment. Bombardier burned through $1.6 billion of free cash flow in the first quarter, with as much as half of that coming from slow orders for planes and trains, temporary factory shutdowns and the inability to deliver aircraft amid government travel restrictions.

Bombardier Sees Demand for Luxury Jets Crumbling by at Least 30%

(Bloomberg) -- Bombardier Inc., which is betting its future on making private jets, is bracing for a drop of at least 30% in demand for luxury planes as the coronavirus pandemic hits this year’s sales.The company’s business-aircraft division already suffered “a significant slowdown in order...

ca.finance.yahoo.com

 

[Amare]

And here they are again begging for more money from the government. All I know is this: the Federal government better not hand one more damn cent to this company. I'm not interested in having my money fund this woefully mismanaged company, and they should be allowed to bleed themselves dry and finally declare bankruptcy. It's over for them; there's no point injecting money into a sinking ship that wastes taxpayers money by essentially giving the ROI to other countries via their sell-offs.

Bombardier posts Q1 loss, seeking support if pandemic persists

Bombardier halted manufacturing activities in the second half of March in Canada and other countries.

calgarysun.com

 

[rbt]

Thunderbay plant gets a bit of work; 8 cab cars and 20 coaches,

Bombardier lands US$108 million transit contract for Thunder Bay plant

Coach manufacturer to assemble Bi-Level commuter cars for American West Coast transit authority

www.northernontariobusiness.com

 

[Allandale25]

Bombardier starts work on manufacturing ventilators

Read the full story and comment on Tbnewswatch.com

www.tbnewswatch.com

 

[urbanyimby]

Bombardier starts work on manufacturing ventilators

Read the full story and comment on Tbnewswatch.com

www.tbnewswatch.com

Bombardier sticks to their habit of being late

 

[AlbertC]

Bombardier exits commercial jet sector with closure of US$550M CRJ deal

June 1, 2020

MONTREAL — Bombardier Inc. has completed the sale of its regional jet business to Mitsubishi Heavy Industries Ltd. for US$550 million, cementing the plane maker's departure from commercial aviation following a three-decade run.

The sale of its CRJ aircraft series paves the way for Bombardier to focus on its one remaining income stream — private jets — as the company ramps production back up following factory closures during the COVID-19 pandemic, which cost the company up to US$800 million last quarter.

The deal adds sorely needed capital to a firm whose debt tops US$9 billion and whose backlog of business jet orders is falling as clients and companies rethink the value of a private plane purchase in a recession.

Bombardier exits commercial jet sector with closure of US$550M CRJ deal

MONTREAL — Bombardier Inc. has completed the sale of its regional jet business to Mitsubishi Heavy Industries Ltd. for US$550 million, cementing the plane maker's departure from commercial aviation following a three-decade run.The sale of its CRJ aircraft series paves the way for Bombardier to focus

ca.finance.yahoo.com

 

[AlbertC]

Bombardier cutting 2,500 jobs as business jet demand falls due to pandemic

June 5, 2020

MONTREAL — Bombardier Inc. will cut 2,500 workers from its plane-making division as demand for the company's main source of income — private jets — plummets amid a recession and falling travel demand.

Poised to take place throughout this year, the cuts will see 1,500 layoffs in Quebec and 400 in Ontario. Some 500 more are slated for Mexico, 40 in the United States, and about 60 outside North America, according to a Bombardier spokesman.

The announcement comes less than three months after Eric Martel took over as CEO from Alain Bellemare, under whose watch the plane-and-train maker moved to sell off its commercial aircraft and rail divisions to prop up a balance sheet weighed down with billions in debt.

Bombardier cutting 2,500 jobs as business jet demand falls due to pandemic

MONTREAL — Bombardier Inc. will cut 2,500 workers from its plane-making division as demand for the company's main source of income — private jets — plummets amid a recession and falling travel demand.Poised to take place throughout this year, the cuts will see 1,500 layoffs in Quebec and 400 in...

ca.finance.yahoo.com

 

[Admiral Beez]

MONTREAL — Bombardier Inc. will cut 2,500 workers from its plane-making division as demand for the company's main source of income — private jets — plummets amid a recession and falling travel demand.

Idiots. I predicted this pre-pandemic. Let’s see if my complete prophecy below comes to pass.

Ha. But seriously, they must be mad, if any economic downturn occurs, the first thing that goes is the corporate jet. My guess is before the end of this decade the BBR business jets, or a segment such as Learjet (producing only one model from the early 2010s and new projects now canceled) is sold off to again pay down debts incurred from some other harebrained scheme.

Learjet was already looking like a discounted sell off contender in 2016.

https://www.theglobeandmail.com/rep...-be-considering-learjet-sale/article31349388/

 

[AlbertC]

(Bloomberg) -- Bombardier Inc. is facing the boot from Canada’s main index as it slides toward irrelevance for equity investors.

The manufacturer’s share price has been below C$1 since early March, potentially making it ineligible to stay in the S&P/TSX Composite Index and in turn the S&P/TSX 60 Index of large companies.

To be included in the composite, a company must have a minimum volume-weighted average price of C$1 over the previous three months, as well as over the last 10 trading days of the month prior to the index provider’s quarterly review, according to S&P Dow Jones index methodology. For Bombardier, that average price is now sitting at about 53 Canadian cents for the three months leading up to June.

Bombardier, Once a Canadian Champion, Risks Exile From Index

(Bloomberg) -- Bombardier Inc. is facing the boot from Canada’s main index as it slides toward irrelevance for equity investors.The manufacturer’s share price has been below C$1 since early March, potentially making it ineligible to stay in the S&P/TSX Composite Index and in turn the S&P/TSX 60...

ca.finance.yahoo.com

 

[drum118]

EU to decide on Alstom- Bombardier deal by July 16