Assessing turmoil at Bombardier: it doesn’t stop at CSeries

  • The Wall Street Journal takes a look at Bombardier.(Subscription required.)
  • "“We did not fully expect and prepare” for the competitive response, said a Bombardier executive. Its studies concluded re-engining the A320 and 737 made no economic sense and was unlikely to happen," The WSJ writes.
This is an incredibly naive assessment by BBD. We co-wrote in a study in 2009 that concluded Airbus and Boeing had no choice but to reengine their A320 and 737 families, about 18 months before Airbus launched the A320neo and two years before Boeing launched the 737 MAX. The WSJ piece is a good look at the program and competitive situation. We take a critical look at the turmoil below. Subscription Required Introduction Jan. 9, 2015: The sudden departure of the sales chief at Bombardier Aerospace, the second time in 13 months, underscores the continuing turmoil at the multimodal transportation company and the drag its commercial aerospace unit has been and continues to be. Summary
  • Key sales people departed in 2014.
  • CSeries sales still anemic.
  • Q400 down to 10% market share.
  • CRJ struggling.
  • Falling oil prices gives reasons to put off committing to CSeries.
  • Airbus viewed CSeries as a threat.

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