Airline assets and lessor assets: Bombardier and Embraer

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Introduction

Bombardier invented the regional jet. Despite some sales these days, the CRJ was eclipsed by the Embraer J-Jet. Bombardier photo.

Bombardier invented the regional jet. Despite some sales these days, the CRJ was eclipsed by the Embraer J-Jet. Bombardier photo.

Oct. 10, 2016, © Leeham Co.: Regional aircraft are much riskier assets for lessors than mainline aircraft. Until recently, Bombardier and Embraer were the only two regional jet Original Equipment Manufacturers (OEMs). Today, the Sukhoi SSJ100 and the Mitsubishi MRJ90 join BBD and EMB in this arena.

Summary

  • Bombardier’s regional jets CRJ series enjoyed a good life with airlines and lessors, but fell into disfavor as fuel prices spiked.
  • BBD’s CSeries was ordered by four lessors, but two of them have question marks.
  • Embraer’s E-Jet found good homes with lessors, but some worry about supply-and-demand in the secondary market.

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