|Quoting r2rho (Reply 62):|
Not so much IMO. Blowing budget & schedule is the norm nowadays, nothing to be surprised about. The problem was pursuing too many development programs (Global 7/8000, Learjet 85, CSeries) in parallel, while the existing product lines (CRJ, Q) were are dying away, so that no cash flows in. Airbus developed the A350 and poured tons of money to fix the A400M while in parallel the A320 & A330 were selling in record numbers - cash was always flowing in. Same for the Boeing 787 troubles - 777 and 737 kept selling like hotcakes, cash was flowing in. BBD did not have that during CSeries/G7/8000/L85 development, and that's the problem they're in now.
As for the unproven market, the lack of sales is not necessarily an indication of unproven market; the sales are decided by other factors, a few of which have been pointed out:
Yep. Early 2000s BBD sat on their hands and watched the regionals load up on CR2s. When that started tapering, they decided to stretch it again and again. See how well the CRJ1000 has sold....
Same with the Dash. The classics stopped selling so they canned them and went all Q400. It sold alright at first, but it's going the same way as the CRJ's.
BBD should have updated the classic Dash rather than stopping production in 2006(?)
They also should have stopped stretching the CRJ after the 700/900. The 1000 must have cost them a fortune, it seemed like it was in development forever.
Meanwhile, they've sold off the rest of the DHC portfolio, so no income there anymore. CRJ's are winding up in the desert at a crazy rate, so they must face declining revenue from that program. And the Q400, well, after the SAS saga, it's never really recovered, except for domestically, with PD
Encore and QK
ordering them since 2005.
Rather than upgrading the aircraft, BBD has merely offered an 86 seat config, and a combi config. Maybe good for 5 or 10 orders each. Wise use of resources? Doubtful.
I'd lovelovelove to see the Cseries be successful; I'm firmly of the opinion of the more aircraft types around the better. However, if we don't start to see some orders appear after they're in revenue service for a bit, I'm going to be pretty pessimistic.
Remember, this is, realistically, Bombardier's first ever airliner. Everything else they've inherited and stretched. (Canadair, DHC, Shorts,Lear) They've never started with a blank piece of paper and a goal.
Same goes for their rail division...Lohner-Rotax, Adtranz, Pullman, Budd etc. (I'm not super up to date on their rail division, but they only got into the business through acquisitions)
The other issue I see with Bombardier is the Beaudoin/Bombardier family. Their CEO stepped down in February..where'd he end up? Executive Chairman of the Board. Replacing his father. At least the new CEO isn't blood related. Though it must be difficult to report to the guy who used to have your job and really didn't seem to know how to do it.
Regardless, the Quebec government will undoubtedly throw some cash their way. They'd never let Bombardier fail. Too much pride in the company. Now might be a great time to load up on some shares...