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LAXintl
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Bombardier Seeks Investors For All Business Units

Fri Oct 02, 2015 5:24 pm

Financial troubles getting worse. Time to sell the furniture...


Canada’s Bombardier Inc. is exploring the sale of a stake in any of its business areas, not just its rail unit, to ensure it can finish development of its delayed CSeries jet.

The Montreal-based company has hired investment bankers to look at a variety of financing options, the sources said, including selling aerospace or rail assets in full or in part, forming joint ventures or bringing in private equity investors.
One source familiar with the company’s thinking said Bombardier hoped to secure some additional source of cash, through the sale of a business unit or another arrangement, perhaps with a Canadian government, before its third-quarter earnings report on Oct. 29.

Spokeswoman Isabelle Rondeau said on Wednesday that plan had not changed.

“Everything is on the table,” said the source familiar with the company’s thinking. “They’re aggressively looking worldwide for some sort of capital infusion. At the end of the day, they need more cash to keep the CSeries going, because the future of the company depends on that plane.”

Asked about Bombardier seeking investors in other units, Rondeau said it “is exploring initiatives” in general.



Bombardier seeking investors for all business units: sources
http://www.theglobeandmail.com/repor...ess-units-sources/article26606557/

Bombardier Exploring Business Unit Sales To Raise Cash to Fund CSeries Jet
http://www.finalternatives.com/node/31833

=

Also does not help having had multiple management shakeups the last few years as the company continued to drift deeper in a hole without strong leadership to steer the ship as its other biz and commercial aircraft sales also floundered.
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mercure1
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RE: Bombardier Seeks Investors For All Business Units

Fri Oct 02, 2015 5:43 pm

Unfortunately C-series is the project that is pushing BBD over the edge.

In last couple of years they have built incredible mound of debts as they burn through cash at massive rate.
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N14AZ
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RE: Bombardier Seeks Investors For All Business Units

Fri Oct 02, 2015 6:55 pm

Ouch, that doesn't sound well... I guess it won't be long until a Chinese investor knocks at Bomardier's door and says "Ni haow!"
 
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Polot
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RE: Bombardier Seeks Investors For All Business Units

Fri Oct 02, 2015 7:02 pm

Quoting mercure1 (Reply 1):
Unfortunately C-series is the project that is pushing BBD over the edge.

It's unfortunately not just because of the C-series. There is also the "suspended" Learjet 85 program and the Global 7000/8000 which I believe is now "under review."

Bombardier has burned through a lot of cash in their aerospace programs in the past couple of years and currently has yet to put any of these new jets in customer's hands.
 
planemaker
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RE: Bombardier Seeks Investors For All Business Units

Fri Oct 02, 2015 7:43 pm

Quoting N14AZ (Reply 2):
Ouch, that doesn't sound well... I guess it won't be long until a Chinese investor knocks at Bomardier's door and says "Ni haow!"

They already have, early last month, but BBD turned them down... Bombardier rejects Chinese offer for railway unit
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RE: Bombardier Seeks Investors For All Business Units

Fri Oct 02, 2015 9:51 pm

Quoting Polot (Reply 3):

The L85 was a mismanaged disaster. How much did they write off? I only worked FBW testing on one protect, but I could recommend a few people who could have done it better. Same with C-series. I do not know what is up with the Global 7k, 8k.

Three programs was two more than Bombardier could handle.

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LAXintl
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RE: Bombardier Seeks Investors For All Business Units

Fri Oct 02, 2015 11:06 pm

Reuters reporting BBD in negotiations with Canadian public pension plans(already one of BBDs largest shareholders) to persuade them to take a larger stake in the company though such deal may prove unpopular ahead of an Oct. 19 federal election.
BBD stock lowest point since 1991.

http://www.reuters.com/article/2015/...-a-exclusive-idUSKCN0RW2IA20151002
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Tangowhisky
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RE: Bombardier Seeks Investors For All Business Units

Sat Oct 03, 2015 1:39 am

Quoting LAXintl (Reply 6):
Reuters reporting BBD in negotiations with Canadian public pension plans(already one of BBDs largest shareholders) to persuade them to take a larger stake in the company

I think that is the only option the family wants. It is not interesting for big private investors given that the family want to have majority of the voting shares. Governments as investors, well that's different.

Quoting lightsaber (Reply 5):
The L85 was a mismanaged disaster. How much did they write off? I

$1.4B write-off along with 1,000 job cuts.

Quoting lightsaber (Reply 5):
Three programs was two more than Bombardier could handle.

That's what happens when auto execs got hired
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dc10lover
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RE: Bombardier Seeks Investors For All Business Units

Sat Oct 03, 2015 2:29 am

I see no future for Bombardier.
Why endure the nightmare and congestion of LAX when BUR, LGB, ONT & SNA is so much easier to fly in and out of. Same with OAK & SJC when it comes to SFO.
 
BHXLOVER
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RE: Bombardier Seeks Investors For All Business Units

Sat Oct 03, 2015 10:17 am

Quoting DC10LOVER (Reply 8):

At least not without a drastic cutback and a return to doing what they do best.

Terrible shame if it happened, but maybe the C Series is a project too far.

If I were the public pension plans, I would steer well clear of any extra exposure.
 
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RE: Bombardier Seeks Investors For All Business Units

Sat Oct 03, 2015 10:32 am

It's worth noting that Bombardier employ 5500 people in N Ireland, which is going though one of its regular states of political crisis at the moment, most of whom are depending on the success of the C series going forward...
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YXXMIKE
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RE: Bombardier Seeks Investors For All Business Units

Sat Oct 03, 2015 10:59 am

Quoting DC10LOVER (Reply 8):
I see no future for Bombardier.

Excellent insight there, very thorough and well thought through....I'll admit that I'll at least take Planeamkers incessant negativity over that...at least he say's something.

It's going to be a struggle cash flow because of the massive mess they've made between the three very expensive programmes. I do believe that they will get out of this and it'll be a mixture of existing products (e.g. Q400, CRJ) and their new portfolio (e.g. C Series) which help them move forward.

Just in the last few days they've managed to get orders for more CRJ's and big airlines like WS have also said that they will be looking to expand their existing Q400 fleet further. So there will be cash coming in and a major injection of cash will be what's needed to get them over this fairly substantial hump right now.

CRJ Orders - http://business.financialpost.com/ne...ers-for-up-to-16-crj-regional-jets

WS Story where they mention growing the regional fleet - http://business.financialpost.com/ne...is-changing-as-it-expands-globally

Quoting planemaker (Reply 4):
They already have, early last month, but BBD turned them down... Bombardier rejects Chinese offer for railway unit

I'm not sure how much you follow Canadian politics and in particular what happened the last time China went after a fairly large company which was deemed of important strategic value. That was when CNOOC took over Nexen of Calgary for $15.1CDN. At the time the Canadian Government clearly stated that deals like that going forward would be under a serious level of scrutiny so I wouldn't surprise me if the government stepped in and told BBD that they would block that deal...just my thought but it does go in line with what has been said in the past.
http://globalnews.ca/news/398065/cno...gary-oil-and-gas-producer-nexen-3/
 
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RE: Bombardier Seeks Investors For All Business Units

Sat Oct 03, 2015 1:32 pm

Technically, if Bombardier received a very large order of say... 100 CS300s. Would that be enough to secure their future? Would deposits for 100 aircraft be enough cash injection to move forward?
 
marktci
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RE: Bombardier Seeks Investors For All Business Units

Sat Oct 03, 2015 1:53 pm

The Quebec government has also stepped forward to provide some backing for Bombardier (in words now and potentially with guarantees down the road, if necessary).

Part of the problem now is that potential customers know that Bombardier has no leverage. Bombardier needs sales and any potential customers will likely wait on the sidelines until they can get the best (i.e., most desperate) deal possible. This backing by the province will help to swing some leverage back to Bombardier's side.

http://montrealgazette.com/business/...id-premier-philippe-couillard-says
 
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RE: Bombardier Seeks Investors For All Business Units

Sat Oct 03, 2015 1:58 pm

Quoting N14AZ (Reply 2):
I guess it won't be long until a Chinese investor knocks at Bomardier's door and says "Ni haow!"

Funny saying that with a German flag by your name.
 
planemaker
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RE: Bombardier Seeks Investors For All Business Units

Sat Oct 03, 2015 3:15 pm

Quoting LAXintl (Reply 6):
Reuters reporting BBD in negotiations with Canadian public pension plans(already one of BBDs largest shareholders) to persuade them to take a larger stake in the company though such deal may prove unpopular ahead of an Oct. 19 federal election.
BBD stock lowest point since 1991.

BBd thought they had the upper hand during the last financing but the Caisse has BBD over a barrel this time...
'
Bombardier seems not to grasp the dire straits it’s still in

Quoting Tangowhisky (Reply 7):
That's what happens when auto execs got hired

The problems started years before Arcamone was hired.

Quoting YXXMIKE (Reply 11):
Planeamkers incessant negativity

If there is anything positive to say, I acknowledge it. But there has never been a compelling business case for the CSeries, and why people continually ignored the overwhelming facts is frankly inexplicable.

Quoting YXXMIKE (Reply 11):
I'm not sure how much you follow Canadian politics and in particular what happened the last time China went after a fairly large company which was deemed of important strategic value.

My point was that the Chinese had already come knocking. However, since you missed my point I will point out that the offer was only for the rail unit... not BBD. And anyone familiar with BBD will know that the rail unit is of little "important strategic value" to Canada since the vast majority of assets are not even in Canada.

Quoting marktci (Reply 13):
Part of the problem now is that potential customers know that Bombardier has no leverage.

BBD never had any leverage with potential customers.
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mercure1
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RE: Bombardier Seeks Investors For All Business Units

Sat Oct 03, 2015 4:14 pm

Quoting YXXMIKE (Reply 11):
Just in the last few days they've managed to get orders for more CRJ's and big airlines like WS have also said that they will be looking to expand their existing Q400 fleet further. So there will be cash coming in and a major injection of cash will be what's needed to get them over this fairly substantial hump right now.

But I wonder if any of those sales are even profitable. BBD is to the point they are almost building white-tails and can deliver a new order in mere 6-months, so the sales folks have to be out there offering incredible bargains to simply move frames.

Its amazing to compare BBD vs Embraer or ATR with such divergent order books.

Quoting JetBuddy (Reply 12):
Technically, if Bombardier received a very large order of say... 100 CS300s. Would that be enough to secure their future? Would deposits for 100 aircraft be enough cash injection to move forward?

BBD might needs 1000's of sales to dig itself out.

Remember the 'profit' on a plane might be only a few percent of the price and BBD has billions in debt assuming BDD even makes a profit on its pricing. So only a tiny fraction of the money can go towards reducing the mountain of debt accumulated at the company.
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Tangowhisky
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RE: Bombardier Seeks Investors For All Business Units

Sat Oct 03, 2015 10:22 pm

Quoting planemaker (Reply 15):
The problems started years before Arcamone was hired.

It was Guy Hachey (ex auto exec and yes he hired Mike another auto exec) as COO of Aerospace at the tiller pushing the 3 programs to the board. Any seasoned executive that understand the technical risks and monumental task at managing three programs with hundreds of suppliers would not have done such a thing. The board is just as guilty.
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planemaker
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RE: Bombardier Seeks Investors For All Business Units

Sun Oct 04, 2015 4:23 pm

Quoting Tangowhisky (Reply 17):
It was Guy Hachey

The problems existed long before Hachey arrived at BBD..

Quoting Tangowhisky (Reply 17):
pushing the 3 programs to the board.

Not only was the L85 launched before Hachey arrived at BBD but the Board had also already ATO'd the CSeries before he arrived at BBD.
Nationalism is an infantile disease. It is the measles of mankind. - A. Einstein
 
Tangowhisky
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RE: Bombardier Seeks Investors For All Business Units

Sun Oct 04, 2015 11:46 pm

Quoting planemaker (Reply 18):
The problems existed long before Hachey arrived at BBD..

Why don't you read the posts before trying to sound so smart. I was commenting to

Quoting lightsaber (Reply 5):
Three programs was two more than Bombardier could handle.

Hachey joined in 2008 when the L85 was just launched, then he pushed the CSeries, followed by the Global 7000/8000. Yes the company had other problems, but I was responding to another point.
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planemaker
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RE: Bombardier Seeks Investors For All Business Units

Mon Oct 05, 2015 12:09 am

Quoting Tangowhisky (Reply 19):
Why don't you read the posts before trying to sound so smart. I was commenting to

First, you quoted and responded to me not Lightsaber, in your Reply 17 and thus I replied. Second, I did indeed read your reply to me, and as I already pointed out, it is incorrect. Here is your Reply No. 17 to me:

Quote:
It was Guy Hachey (ex auto exec and yes he hired Mike another auto exec) as COO of Aerospace at the tiller pushing the 3 programs to the board.

Hachey did NOT push the L85 nor the CSeries to the Board as they were already approved by the Board before he arrived.
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RE: Bombardier Seeks Investors For All Business Units

Tue Oct 06, 2015 8:13 pm

According to Reuters Airbus have been offered "majority stake in CSeries jet".

Quoting Reuters Aerospace News:

Bombardier (BBDb.TO) has approached European planemaker Airbus (AIR.PA) about selling
a majority stake in the Canadian company's CSeries jet in order to shore up its depleted
balance sheet, people familiar with the matter said.

Under a proposed tie-up, Airbus would help Bombardier complete development of the troubled
aircraft in exchange for a controlling stake in the program, effectively ending Bombardier’s
independent efforts to break into the 100- to 160-seat airplane market dominated by
Airbus and Boeing (BA.N).
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rotating14
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RE: Bombardier Seeks Investors For All Business Units

Tue Oct 06, 2015 8:49 pm

Quoting JetBuddy (Reply 12):
Technically, if Bombardier received a very large order of say... 100 CS300s. Would that be enough to secure their future? Would deposits for 100 aircraft be enough cash injection to move forward?

I think most narrowbody aisle buyer/lessors have already made up their minds on the C-Series.
 
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mercure1
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RE: Bombardier Seeks Investors For All Business Units

Tue Oct 06, 2015 8:54 pm

If I was Airbus I would acquire them and quietly eliminate the program - ala Boeing and the 717.
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LAXintl
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RE: Bombardier Seeks Investors For All Business Units

Tue Oct 06, 2015 9:45 pm

Quoting mercure1 (Reply 23):

If I was Airbus I would acquire them and quietly eliminate the program - ala Boeing and the 717.

If that is the case, Mr. Boeing probably be happy to lend Airbus some money for the acquisition.

Returning to a more steady, two OEM market be beneficial to both.
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LAXintl
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RE: Bombardier Seeks Investors For All Business Units

Tue Oct 06, 2015 10:50 pm

Airbus says no longer talking...

Airbus Group SE (stock exchange symbol: AIR) confirms that it has been exploring business opportunities with Canada-based Bombardier Inc. and that such discussions are no longer being pursued.

http://www.airbusgroup.com/int/en/ne...airbus_group_adhoc_bombardier.html

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mercure1
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RE: Bombardier Seeks Investors For All Business Units

Tue Oct 06, 2015 11:28 pm

Well so much for that idea.
I figured politics would derail the idea anyhow.
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Amiga500
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RE: Bombardier Seeks Investors For All Business Units

Wed Oct 07, 2015 10:24 am

The BBD board (inc. "the family") really really screwed up around the turn of the millennium.
 
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LAXintl
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RE: Bombardier Seeks Investors For All Business Units

Wed Oct 07, 2015 5:10 pm

Bombardier shares in big decline - down 14% as of 12noon Eastern.

Bombardier shares sink as Airbus talks fail, focus turns to funding woes
http://www.thefiscaltimes.com/latest...rbus-talks-fail-focus-funding-woes

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mercure1
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RE: Bombardier Seeks Investors For All Business Units

Wed Oct 07, 2015 9:41 pm

If anyone listen to airplane geeks podcast this week as guest they had DR. Kevin Michaels VP at ICF International the big transportation consultancy.

He makes some very interesting comments about BBD.

Basically BBD has two big problems as we know.
1) Financial liquidity
2) strategic.

Financial is quite and dire as company is burning $600-800mil per quarter in cash and in about 3 quarters will be out of money even with the new billions in loans it arranged in February.
He also states very interestingly, for every C-series delivered due accounting requirements, BBD will book a cash loss for the first several years, so starting to deliver aircraft will not help with finances, they will actually create a bigger loss.

On strategy he says with dismal results in the bizjet sector and other commercial models that are not selling either, has left BBD with very bad set of cards, and now entire division future being being gambled.

As far as outcomes, he sees two scenarios for BBD short of them simply throwing in the towel and walking away from Aerospace and shutting things down before they run out of cash.

1) Sale of aerospace division to another party - but to whom is the big question, as its a big risk and financial commitment and BBD is not really bringing anything unique to the buying party.
2) Take over / bailout by Canadian government, but this still does not solve long term strategy problems BBD has with its poor product line up and costly projects
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Tangowhisky
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RE: Bombardier Seeks Investors For All Business Units

Thu Oct 08, 2015 1:59 am

Quoting mercure1 (Reply 29):
1) Sale of aerospace division to another party - but to whom is the big question, as its a big risk and financial commitment and BBD is not really bringing anything unique to the buying party.

There is more upside in BBD's Aerospace business than the Transportation. With the Chinese muscling in the rail business, there is way too much capacity worldwide coupled with governments with no money or will to spend a great deal in rail. The Aerospace business still has a successful Business Aircraft portfolio that is reasonably profitable. I don't see anyone really interested in the Commercial aviation business, so BBD needs to make it work,

Quoting mercure1 (Reply 29):
2) Take over / bailout by Canadian government, but this still does not solve long term strategy problems BBD has with its poor product line up and costly projects

There is quite a bit of news leaking that the Quebec pension fund (Caise de depot placement Quebec) would be the investor to bring in the much needed liquidity. There are hurdles to make this happen including the family share ownership structure, but the Caise de depot is the most viable option. As far as poor product lineup is concerned, it is mainly in Commercial Aircraft business. They will try and milk the CRJs/Q400s as long as they can with minimal investment, but invest heavily in the CSeries platform (CS500, CS700, etc.).
Only the paranoid survive
 
mrocktor
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RE: Bombardier Seeks Investors For All Business Units

Thu Oct 08, 2015 10:33 pm

Quoting planemaker (Reply 15):
But there has never been a compelling business case for the CSeries, and why people continually ignored the overwhelming facts is frankly inexplicable.

Truth. You (and I) have been saying there is no gap between existing "regional jets" and narrowbodies since this program was announced.

The CS does not cover the 70-100 seat range, and does not cover the 150-200 seat range, so any airline will continue to need "regional jets" and 73x/A32x series airplanes side by side with the CS. It would be idiotic to add a third fleet type for marginal performance improvement in that middle range.
 
Tangowhisky
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RE: Bombardier Seeks Investors For All Business Units

Fri Oct 09, 2015 1:28 am

Quoting mrocktor (Reply 31):
It would be idiotic to add a third fleet type for marginal performance improvement in that middle range.

Swiss have A319/A320/A321, and will get rid of the BAe's and add the CS100/CS300 to their fleet. The new fleet will have two aircraft types with a high degree of overlapping capacity ranges. What Swiss are doing is actually quite clever.

I can see them in the future buying more A321s (neo) and keeping the sub 150 seat capacity with the CSeries and my guess is that they will be a launch customer for a CS500.

Why? Because as I have been saying for a while Boeing and Airbus neo/MAX variants are getting heavier over their ceo (Current Engine Offer) models. While the new models will have some fuel burn improvements, their heavier weights will mean new pilot pay rates when the next round of labor negotiations take place.

The A319neo MTOW is 166.4k lbs, while the CS300 MTOW is 148.9k lbs. The A319neo is already 5,0000 lbs heavier than the A319ceo according to Airbus specs. Going to the top of the A320 family, the A321neo weighs 206.1k lbs.

So if Swiss stayed with only the Airbus types (A319neo, A320neo, A321neo), then the base rate for the entire fleet would be based on the highest weight: A321neo at 206.1k lbs. So by splitting the fleet with the CSeries and A321neo, they end of saving huge with the combined lower pay rate and lower fuel burn over an all Airbus family.

The only problem with the E2-Jets is that they do not fly 3,000 nautical miles with 130-150 pax.

Swiss/Lufthansa know what they are doing, and others will take notice. After all, let's not forget how airlines like to copy other's successful business models.

[Edited 2015-10-08 18:30:48]

[Edited 2015-10-08 18:31:23]
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mercure1
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RE: Bombardier Seeks Investors For All Business Units

Fri Oct 09, 2015 1:52 am

Quoting Tangowhisky (Reply 32):
What Swiss are doing is actually quite clever.

Swiss is doing what papa Lufthansa is allowing it to do.

Quoting Tangowhisky (Reply 32):
Swiss/Lufthansa know what they are doing, and others will take notice

I'm not so sure. Remember Swiss did not order these planes, but were assigned them by Lufthansa Group.

Frankly so much has happened to change circumstance in the last 6-years at LH Group with Eurowings, CityLine, Air Dolomiti and mainline seeing major changes while SN Brussels and Austrian coming into the fold and Swiss having changed quite some also, the commercial need and reality within the group is certainly very different 2009.

So 2009's fleet solution, might no longer be the same answer in 2016 when these aircraft finally enter service.
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Flighty
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RE: Bombardier Seeks Investors For All Business Units

Fri Oct 09, 2015 2:20 am

This isn't only about C series. It is about their decision making process in general.

As noted... Boeing and Airbus each had cash cushions on which to take a huge gamble. Airbus' gamble was similarly mis-targeted, too.

If BBD hadn't made so many other mis-steps too, they would have enough cash to pull this off.

BBD will need to sell out to China, and clearly govt of Canada will be leery to see that. In any event, Canada export financing would have to be key. So the govt has to step up.

Quoting Tangowhisky (Reply 30):
BBD needs to make it work,

To really sell, they need to stretch the fuselage. The ac can make billions. But they need to get in the market.

[Edited 2015-10-08 19:21:13]
 
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LAXintl
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RE: Bombardier Seeks Investors For All Business Units

Fri Oct 09, 2015 2:35 pm

The family will kill this company.

While happy to take outside money, but wont diminish their super voting shares.


Bombardier on the hunt for partners but founding family opposes diminished control
http://www.theglobeandmail.com/repor...ge-on-dual-shares/article26730552/

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LAXintl
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RE: Bombardier Seeks Investors For All Business Units

Fri Oct 09, 2015 6:12 pm

Its rare someone will be willing to put equity in without some control on return.
So either the family loosens their grip, or they can ride things and out and risk a wipe out.

Of course all this news about the future and viability of BBD aerospace will only makes it harder on the BBD sales folks. Who is going to commit to an order particularly a large one if their the growing risk the company selling you something might not be here to deliver?
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planemaker
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RE: Bombardier Seeks Investors For All Business Units

Sat Oct 10, 2015 3:20 pm

Quoting mrocktor (Reply 31):
Truth. You (and I) have been saying there is no gap between existing "regional jets" and narrowbodies since this program was announced.

The CS does not cover the 70-100 seat range, and does not cover the 150-200 seat range, so any airline will continue to need "regional jets" and 73x/A32x series airplanes side by side with the CS. It would be idiotic to add a third fleet type for marginal performance improvement in that middle range.

You have been prescient and consistent. Here one of your posts from 5 years ago...

Quote:
It is a fact that the CSeries is a high risk program. It is the first clean sheet design BBD has ever done (as opposed to taking over other companies or modifying existing products). It is a clean sheet airliner with a clean sheet engine - both of which introduce innovative technological features.

It is a fact that the market segment the CSeries is targeted at is a niche market. The traditional narrowbody market (which originally contained this segment) has been pushed upwards and today is in the 140 to 200 seat range. The large "regional" jet segment (responsible for the aforementioned pushing) today occupies the 70 to 110 seat range. The CSeries is optimized to sit right between these segments.

That is factual. Now for the interpretative part of the post.

A high risk program begets caution from all parties. It is no surprise that customers are few at this time, that everyone is leaving themselves a way to walk away from the deal, that no one wants to be launch customer. Once BBD have a prototype flying a lot of this caution will abate - I expect orders to increase from that point onward.

The market niche and value proposition is a more complex issue. Personally I think that by not covering the "large RJ" range OR the "traditional NB" range completely the whole CSeries concept has shot itself in the foot. "Regional" operators would see themselves adding a fleet type at the top of their capacity range (and keeping their CRJs or E-jets), network operators would see themselves adding a fleet type to the bottom of their capacity range (and keeping their 739s, A321s, 757s).

As such, 15% cost advantage or not, the CSeries does not solve any fleet planning problems. It can offer a tactical opportunity for economy but not a strategic move that can pay off at the highest scale (which both the original 737 and the first CRJs did). Though arguably a technological breakthrough, this is why I don't see the CSeries as a game changer.

Ultimately BBD will bring the CSeries to market, because they cannot afford not to (and because the canadian tax-victim is footing 1/3 of the bill). When the product actually exists, there will be orders. From a company standpoint, if the program ultimately generates enough sales to reach break even (purely from an accounting standpoint - lets not get into whether the tax-victim gets his money's worth out of his share) count that as a win. BBD is keeping its commercial aviation division alive, right now that is their main goal.

With the inevitable squeeze when the all new 737 and A320 are launched, the clock is ticking.
Nationalism is an infantile disease. It is the measles of mankind. - A. Einstein
 
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LAXintl
Topic Author
Posts: 23967
Joined: Wed May 24, 2000 12:12 pm

RE: Bombardier Seeks Investors For All Business Units

Sat Oct 10, 2015 5:05 pm

The Quebec government is preparing a special exemption for Bombardier that will allow it to reduce its employee pension funding obligations by $40-million for the tax year.

http://www.theglobeandmail.com/repor...nding-obligations/article26747354/

=
From the desert to the sea, to all of Southern California
 
Tangowhisky
Posts: 667
Joined: Thu Jun 29, 2006 2:26 am

RE: Bombardier Seeks Investors For All Business Units

Tue Oct 13, 2015 12:58 am

Quoting Flighty (Reply 34):
BBD will need to sell out to China, and clearly govt of Canada will be leery to see that

BBD has extended its hand to the Chinese in giving contracts for pretty much all their commercial aircraft, and especially on the CSeries, and the Chinese in return have ordered some CRJs, and no CSeries.

BBD have opened up manufacturing operations in Morocco and Mexico, and not an iota of orders by their regions or the countries since the operations began.

These operations were supposed to bring sales not just lowering their manufacturing costs which the later take time to get the cost benefits to kick in.

This whole story about approaching Airbus is insane, and to expect that Airbus would keep this business "exploration" under wraps after they said no thanks no matter what legal confidentiality documents were signed, is even more naive. Airbus is exploiting this.

Quoting LAXintl (Reply 36):
Of course all this news about the future and viability of BBD aerospace will only makes it harder on the BBD sales folks

I think there is some tensions at corporate headquarters between the top two guys. It does not seem to me that the Airbus investment was Bellemare's doing.
Only the paranoid survive
 
Amiga500
Posts: 2486
Joined: Tue Mar 03, 2015 8:22 am

RE: Bombardier Seeks Investors For All Business Units

Tue Oct 13, 2015 8:11 am

Quoting Tangowhisky (Reply 39):

I think there is some tensions at corporate headquarters between the top two guys.

Beaudoin?

The man is an idiot.

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