I really hope Bombardier can get a lot of money from Mitsubishi if this discussion results in a sale.
However, I still do not understand a bunch of aspects.
- Bombardier is losing money with its CRJ unit, but Mitsubishi can generate profit with it. What's the logic here?
- MRJ90 will get certified only in 2020 if everything goes as planned, it can still be delayed by another year. What's the point of acquiring a service network today?
Anyway, I hope the deal closes soon, but I still do not know the real benefit Mitsubishi can extract from these remains.
If it happens then it is a very good thing for Bombardier's stock. So, I cross my fingers.
I'll start by repeating my own post previously about the possible benefits of acquiring the CRJ program:
- Massive support market. Lots of CRJs flying that need maintenance, spare parts etc. 1950 frames delivered per 31st of March 2019.
- Industrial knowhow and patents.
- Production lines and a skilled workforce.
- A complete product with orders on the books. 51 frames in the order book per 31st of March 2019.
- A fat rolodex with 68 operators / customers
- R&D costs already paid for.
- Option to further develop existing CRJ and modernize it.
- Option to shelf CRJ program and retool for MRJ production.
The reason for the acquisition might not be to sell more CRJs and to generate a profit from that frame itself. It could be just to take over all the infrastructure, knowhow, technology, patents, skilled workforce and customer rolodex.
Those are things that take years to build from scratch. Mitsubishi needs all of this.
2020 is just 6 months from now. 2021 is not that far off in the horizon. If they decide to buy the CRJ program, it will take months to finalize. So why not start now?