Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
Imagine Bombardier And Embraer Join Forces?  
User currently offlineAirCanada014 From Canada, joined Oct 2005, 1507 posts, RR: 0
Posted (8 years 2 months 2 weeks 1 day 5 hours ago) and read 2268 times:

Hello all


We've been talking about how good the EMB jets are and that Bombardiers Cseries dropped. Also we've been talking about the comfortable EMB vs CRJ 705/900 and that everyone prefer EMB over CRJs. Its a shame Bombardier can't come up with newer and improvement product but it would be nice down the road if they can. I was just thinking, just use your imagination. What would you think if Bombardier decides to partnership with EMB to create a new RJ in few years from now with seat ranges from 80-120 with good range up to 2500nm?. I would like to see BBD continue making RJs to compete or work together with Embraer. I hate to see their aerospace going down.

Your comments are appreciate please. No bashing thread for both companies please. Pros and Cons are ok.

2 replies: All unread, jump to last
 
User currently offlinePdpsol From United States of America, joined Feb 2004, 1088 posts, RR: 6
Reply 1, posted (8 years 2 months 2 weeks 1 day ago) and read 2207 times:

AirCanada014,

While you are not the first person to suggest a hypothetical "partnership" between BBD and ERJ, this is the first time I have come accross this topic on a.net. There are a couple of alternatives one can contemplate [of course, there are many other variations one could consider]:

1. An acquisition of one company by another. A stock-for-stock deal would simply be a "merger", with the target's shareholders receiving ownership in the combined company.

2. Creation of a new company [a joint venture] dedicated to a new 110-130 seat commercial project with investments by both BBD and ERJ á-la CFM [with both GE and SNECMA as shareholders] or Airbus [both BAE and EADS are shareholders].

Option #1 appears rather unrealistic give the BBD's dreadful corporate governance and control by the Beaudoin/Bombardier families. Also, BBD's stock value is a disaster now and, even in a stock-for-stock deal, BBD's shareholders would obtain a small position in the combined firm.

Option #2 may be a remote possibility, but, what's the incentive for ERJ to do this? While BBD has made a failed effort to enter the 110-130 seat market with the C-Series, ERJ does not appear to be interested in challenging Boeing or Airbus.

So, while one could consider some sort of "partnership" between BBD and ERJ to further consolidation and create some scale and efficiencies in the process, such an arrangement does not appear likely in the near future.

Should Russia liberalize its aerospace company ownership laws [unlikely], perhaps BBD as well as investors from India and China, could invest directly in the RRJ project as a shareholder.

Who knows? Anything is possible.


User currently offlineDEVILFISH From Philippines, joined Jan 2006, 4696 posts, RR: 1
Reply 2, posted (8 years 2 months 2 weeks 21 hours ago) and read 2163 times:

Quoting Pdpsol (Reply 1):
a hypothetical "partnership" between BBD and ERJ

Only so we could continue to have A+B vs Br+E wars! But that would be lopsided, come to think of it - wouldn't it?



"Everyone is entitled to my opinion." - Garfield
Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
What Are Your Thoughts Of SQ And QF Join Forces? posted Mon Mar 6 2006 01:16:52 by AirCanada014
Sahara Airlines And AA Join Forces posted Tue Jul 12 2005 15:52:40 by Cloud4000
USAirways Express Orders Bombardier And Embraer posted Mon May 12 2003 15:15:46 by Boeing757/767
Bombardier And Embraer To Start Wide A/C? posted Mon Jun 3 2002 06:04:37 by Ibizajet A330
Gulf Air Talking To Bombardier And Embraer posted Tue Mar 26 2002 13:13:53 by GF-A330
Will Boeing And Airbus Join Forces? / 1000th Post! posted Sat Mar 17 2001 21:41:59 by Singapore_Air
Boeing And BAe Systems Join Forces posted Fri Mar 18 2005 01:01:51 by 777ER
DHL And NZ Post Join Forces posted Tue Dec 21 2004 11:44:19 by 777ER
AN And SQ Set To Join Forces posted Tue Oct 9 2001 14:43:04 by RAAFController
Lufthansa And Embraer - Will It Never Happen? posted Sun Jun 26 2005 11:54:24 by TheSonntag