Bombardier Sale: Financially pressed Bombardier sold its military training unit to Canadian supplier CAE for C$19.8m. It’s not a big cash infusion into BBD, but at this point every little bit helps.
Last week, before today’s CAE announcement, UBS issued an update on its BBD coverage, in which it wrote in part:
We continue to see BBD’s equity as over-valued, even after sell-off, given significant off-balance-sheet liabilities on top of also significant on-balance-sheet debt, pension deficit, and supplier/government advances. In all, we estimate BBD’s net debt to be greater than 8x EBITDA, problematic given our forecast for another three years of free cash outflows and big upcoming debt maturity in 2016.
MC-21 forecast: Irkut thinks it will sell 1,000 MC-21s over 20 years, according to this article.
“A322” seen by pilot: A US Airways pilot sees Airbus building an “A322,” a true Boeing 757 replacement and long-range airplane, according to his special contribution to Aviation Week. A small stretch and a new wing, with other improvements, would truly give a long range, single aisle airplane with even more capability than the 757, he writes.