Not long ago, Canadian aircraft manufacturer, Bombardier, was ruling the skies. It had the inimitable C Series that was itching to give Boeing and Airbus a run. But all that is now over…
Just three years ago, Bombardier was the third lagest manufacturer of commercial aircraft in the world with an enviable portfolio and a C Series aircraft that looked like taking on the mighty Boeing and Airbus.
Not anymore. First to go was the C Series earlier this year to Airbus (and rechristened the A 220) and now the sale of the Q400 has reduced the mighty Canadian aerospace giant to a side player in what now continues to be a duopoly. What was put together bit by bit through acquisitions is now being dismantled bit by bit through multiple sales.
The only thing left on the table — apart from its thriving business aviation portfolio — is the CRJ regional jet and its aerostructures unit. But all signs seem to indicate that the CRJ will eventually be divested as well although Chief Executive Alain Bellemare insists Bombardier remains committed to CRJs. But, he concedes the programme has been losing money and says Bombardier is keeping options open.
“Bombardier is well positioned with our rail, business aircraft and aero-structures business,” said Chief Executive Alain Bellemare during a conference call with analysts post the third quarter earnings. “In the future, this will be where we will deploy our capital to [ensure] strong return on investment.”
The company, said Bellemare, is “sharpening its focus on our biggest growth opportunities”.
This story is from the December 2018 edition of Cruising Heights.
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This story is from the December 2018 edition of Cruising Heights.
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