Nov. 12, 2018, © Leeham News: The writing had really been on the wall for the past few years, regardless what the corporate line was: Bombardier was one day going to sell the Q400 program or shut it down.
Better to sell it and get at least some money out of it, no matter how small.
Bombardier agreed to sell the program to British Columbia-based Viking Air for a mere $300m–$250m, net of fees.
Ditto the CRJ program. It’s on life support. It’s a design dating to the 1980s, the passenger experience has long been eclipsed by the Embraer E-Jet and it will be also by Mitsubishi’s MRJ when this jet finally comes on line in 2020. Read more
Nov. 8, 2018, © Leeham News: Bombardier today announced the sale of its slow-selling, aging Q400 turboprop program to Canada’s Viking Air.
Viking previously purchased out-of-production Bombardier/de Havilland aircraft programs, including the Twin Otter, Beaver and CL-415 firefighting bomber.
Twin Otter production was restarted. The Beaver was not an is not in the cards to be restarted. The CL-415 was limping along, and no longer a contributor to Bombardier’s cash flow and profits.
“The Company entered into definitive agreements for the sale of the Q Series aircraft program and de Havilland trademark to a wholly owned subsidiary of Longview Aviation Capital Corp. for approximately $300m,” Bombardier said in a press release. It also announced the sale of other assets for $800m. The two deals are expected to close in the second half of 2019.
The low price reflects the struggles the Q400 has had for years. Bombardier lost money on the Q400 in recent years.
Bombardier also said it is considering its options for the aging, struggling CRJ program. Read more
Oct. 22, 2018, © Leeham News: Bombardier has a firm backlog of 67 Q400 turboprops. ATR has a backlog of 256 through Oct. 20, according to the Airfinance Journal Fleet Tracker.
Bombardier has 83 CRJ jets of all models in backlog. Embraer has 442 orders for all E-Jet models. Mitsubishi has 213 firm orders for its MRJ70/90.
This is just an 11% market share for the CRJ.
These figures illustrate why the market doubts Bombardier’s long-term future in commercial aerospace.
June 18, 2018, © Leeham News: Bjorn Fehrm on Thursday wrote (behind the paywall) that Embraer seems to be selling the E190-E2 short when it comes to range.
Embraer’s published range is 2,850nm. But Bjorn discovered that the range is truly 3,250nm, fully 14% more than the advertised range.
I laughed out loud when Bjorn told me of this discrepancy.
Why would Embraer short-change the E190-E2’s range?
The answer was obvious to me.
May 28, 2018, © Leeham News: Bombardier and Airbus may clear regulatory approvals next month, allowing for consummation of the latter’s acquisition of 50.01% of the CSeries program.
If all works, this will be well in advance of the Farnborough Air Show that begins July 15. Industry eyes will be on the FAS to see what orders might be announced by Airbus for the CSeries, which reportedly may be renamed the A210 and A230 for the CS100 and CS300 respectively.
As May fades to June, Bombardier has beefed up its skyline quality, but there are some orders that are in doubt, including a big one for 40 airplanes.
March 31, 2018 © Leeham News: The first Embraer E2 jet will be delivered April 4, to Norway’s Wideroe Airlines.
The E190-E2 seats 114 passengers in one-class, 29-inch pitch and 106 at 31-inch pitch, putting it at the low end of the 100-150 seat sector that is often maligned as a Bermuda Triangle for airplanes of this size.
The E190-E2 competes with the Bombardier CS100, a 110-seat airplane in one-class. Neither Airbus nor Boeing have a competing product. Each offers a larger airplane in the 125-150 sector, the A319neo and 737-7 MAX respectively. Embraer and Bombardier offer the E195-E2 and CS300 in this sub-sector.
March 12, 2018 © Leeham Co.: Embraer isn’t planning any new airplane any time soon, but studies about a turboprop and an electric airplane are underway.
The current focus is on introducing the Ejet-E2 into service, however. The E190-E2 goes into service next month. The E195-E2 follows next year and the E175-E2 in 2021.
Studies about the electric plane, with 50 passengers or less, perhaps are more esoteric than pending reality. Airbus and Boeing also are studying this concept.
The prospect of a turboprop may be more rooted in reality, however.
March 5, 2018, © Leeham Co.: News emerged last week that Embraer is considering a new jet family smaller than its current E2 line.
Embraer recognizes it needs a second family of airplanes to complement the E2. It’s been considering reentering the turboprop market, but demand is limited.
Restarting a sub-76-seat jet is not without risk, however.
March 1, 2018, © Leeham Co. Three industry professionals raised the question whether the Middle of the Market sector requires one aircraft type or two.
One raised the prospect Boeing might have to undertake concurrent aircraft development, as it did with the 757 and 767.
Richard Aboulafia, a consultant with The Teal Group, Ron Epstein, aerospace analyst for Bank of America Merrill Lynch and Kevin Michaels, president of AeroDynamic Advisory, made their remarks at the annual conference of the Pacific Northwest Aerospace Alliance last month in Lynnwood (WA).