From Wikipedia, the free encyclopedia
|Headquarters||Dorval, Quebec, Canada|
|Revenue||US$10.5 billion (2014)|
Number of employees
|34,100, at year end 2014|
|Slogan||"Ingenuity in Flight"|
Bombardier Aerospace (French: Bombardier Aéronautique) is a division of Bombardier Inc. The company competes with Brazilian rival Embraer for the title of the third largest aircraft manufacturer after Boeing and Airbus. It is headquartered in Dorval, Quebec, Canada.
- 1 History
- 2 Government assistance
- 3 Comac collaboration
- 4 Aircraft
- 5 Facilities
- 6 Production
- 7 Gallery
- 8 See also
- 9 Notes
- 10 References
- 11 External links
After acquiring Canadair in 1986 and restoring it to profitability, Bombardier in 1989 acquired the near-bankrupt Short Brothers aircraft manufacturing company in Belfast, Northern Ireland. This was followed in 1990 by the acquisition of the bankrupt Learjet Company of Wichita, Kansas, builder of business aircraft, and finally the money-losing Boeing subsidiary, de Havilland Aircraft of Canada based in Toronto, Ontario in 1992.
The aerospace division now accounts for over half of the company's revenue. Bombardier's most popular aircraft currently include its Dash 8 Series 400, CRJ100/200/440, and CRJ700/900/1000 lines of regional airliners. It also manufactures the Bombardier 415 amphibious water-bomber (in Dorval and North Bay), the Global Express and the Challenger business jet. Learjet is also a subsidiary of Bombardier based in Wichita.
Bombardier had been in discussions with Mirabel, Quebec (near Montreal) and, in 2008, with Kansas City, Missouri for a $375 million US assembly plant, for its future CSeries aircraft, which Bombardier is marketing as a replacement for aging DC-9, MD-80, and early, smaller versions of the Boeing 737.
This new jet, which offers 110-seat and 130-seat versions, competes with the Boeing 737 Next Generation 737-600, 737-700, Airbus A318, Airbus A319, and Embraer 195. Bombardier claims the CSeries will burn 20% less fuel per trip than these competitors, which would make it still about 8% more fuel efficient than the Boeing 737 Max scheduled for introduction in 2017.
The launch customer for the CSeries, Lufthansa, has signed a letter of intent for up to 60 aircraft and 30 options. The manufacturing complex in Montreal will be redeveloped by Ghafari Associates to incorporate lean manufacturing of its CSeries aircraft.
Also in March 2011, Bombardier signed a memorandum of understanding (MOU) with China's ICBC Financial Leasing to provide advance aircraft payment financing for Bombardier customers worth $8 billion.
In January 2012, Bombardier began manufacturing simple structures such as flight controls for the CRJ series from a transitional facility near Casablanca, Morocco, its first facility in Africa. On 30 September 2013 it broke ground on its permanent facility, due to open late 2014.
In October 2012, a joint development deal between Bombardier Aerospace and a government-led South Korean consortium was revealed, to develop a 90-seater turboprop regional airliner, targeting a 2019 launch date. The consortium would include Korea Aerospace Industries and Korean Air Lines.
In November 2012, the company signed the largest deal in its history, with Swiss luxury aviation company VistaJet, to deliver 56 Bombardier Global jets for a total value of $3.1 billion. The deal includes an option for Bombardier to manufacture and sell an additional 86 Global jets, which would value the entire transaction at $7.3 billion.
In April 2013, Canada's Porter Airlines placed a conditional order for 12 CSeries planes, with options for another 18. However, this was conditional on the Billy Bishop Toronto City Airport (on an island just off downtown Toronto) allowing jets to use the facilities and on a 550-metre extension of a runway. Studies underway included an environmental assessment, master planning exercise and preliminary runway design. In 2015, the Government of Canada announced that it would not approve a change to allow jets at the airport and the proposal was shelved.
In January 2014, the parent company cut 1,700 employees from Bombardier Aerospace to save costs due to a 19 percent drop in orders in 2013.
In July 2014, Bombardier reorganized its corporate structure in response to its underperformance. President Guy Hachey retired and Bombardier Aerospace was split into three divisions: business aircraft, commercial aircraft and aerostructures and engineering services. As part of the corporate overhaul, 1,800 jobs were cut. In its year end statement, Bombardier Aerospace reported that it had reduced the number of employees by 3,700 in 2014, delivered 290 planes in 2014, and had orders for 282 more; the company also claimed "strong long-term potential".
On October 29, 2015 Bombardier announced a US$4.9-billion third-quarter loss and took a $3.2 billion writedown on the CS series in the third quarter. Bombardier also said it would cancel its Learjet 85 program, taking another US$1.2-billion writedown and cancelling the 64 outstanding orders. Particularly because of the CSeries, the company's debt had reached approximately $9 Billion. Bombardier shares fell 17.4 per cent on that day, perhaps because the CSeries had not recorded a single firm order since September 2014.
As of 21 December 2015, the company had only 243 firm orders for the CSeries but the US $2.5 billion in cash infusion - $1 billion from the provincial government plus a $1.5 billion investment from the Caisse de dépôts et placements du Québec - was keeping Bombardier Inc. (the parent company) adequately funded and optimistic. At that time, the federal government had not yet made a decision as to whether a grant will be provided but Prime Minister Justin Trudeau told the media on 11 December that he is well aware of the importance of the aerospace sector to the country's economy.
After a very long and expensive development process, costing $5.4 billion (US) to date, and including a $3.2 billion (US) writeoff, the smaller (110-125 seat) CS100 version of the CSeries received initial type certification from Transport Canada on 18 December 2015. At the time, the company had only 243 firm orders and letters of intent and commitment for another 360, with the most recent in September 2014.
Most of these were for the CS300 model. The latter is expected to receive certification in approximately six months. The first CS100 is expected to be flying by mid-2016 in Lufthansa colours. “Certification is a great thing, but 2016 is going to be critical for orders,” analyst Chris Murray, a Managing Director with Alta Corp, told Bloomberg Business. Fred Cromer, president of Bombardier’s commercial aircraft unit hinted during a press conference on 21 December 2015 that price cuts - or other incentives - may be offered during negotiations in order to jump start sales. (List price for the CS100 is $71.8 million and for the CS300, it's $82 million, US.) In addition to attractive prices, customers “are going to want support, they are going to want spares, they are going to want training,” he explained. While Cromer would not offer specifics, his comments about the possibility of an "aggressive deal" were widely published world-wide and that is likely to plant the seed about discounting in the minds of potential purchasers.
In an attempt to boost its profit margin, Bombardier Aerospace announced on 12 January 2016 that it would cancel deals with its third party sales agent (Tag Aeronautics). The company also said it would cancel 24 firm and 30 optional orders for its planes, hoping to resell those aircraft later, without paying a sales agency fee.
Marketing of the CSeries was adversely affected by production delays and stiff competition in early 2016. Although Delta Airlines said it was seriously looking at the Bombardier offerings, some analysts believe that Delta may be swayed by competitors offering deep discounts. And on 20 January, United Continental Holdings Inc. announced that it had ordered 40 Boeing aircraft instead, the 737-700. Aside from ready availability of a series already in full production, the purchase of Boeing vs. Bombardier planes was financially prudent. Since United already flies 310 of the 737 series, there will be a savings in terms of pilot training and in the amount of spare parts that will need to be stocked. Air Canada announced it would purchase up to 75 CS300, a larger variant of CSeries planes, on February 17, 2016. Prior to this announcement, there were no orders for CSeries planes since 2014.
The C-series program will have positive cash flow after approximately 200 planes are delivered. David Tyerman, an analyst with Canaccord Genuity, commented the difficulty in winning orders illustrates market difficulties faced by Bombardier and questions how profitable the next C Series order they win will be for them. According to Bjorn Fehrm of the aviation consulting firm Leeham Company, the first 15 CSeries planes produced in 2016 each cost Bombardier $60 million to make, but will sell for only $30 million.
On April 28, 2016, Bombardier and Delta Air Lines announced a sale of 75 CS100 firm orders and an additional 50 on options. Industry observers believe that a substantial discount was provided making the final sale at $24.6 – $28.7 million price per aircraft. This large order from a major carrier could help Bombardier to break the Boeing/Airbus duopoly on narrowbody aircraft. The first craft purchased by Delta should go into service in the first quarter of 2018.
Also on 29 October 2015, the Quebec government announced that it would invest US $1 billion (roughly CAD $1.3 billion) to save the struggling series and protect jobs  in what some called a "risky gambit".
That would give the province a 49.5% interest in the limited partnership that will control the assets, liabilities and obligations of the CSeries program. Media reports initially suggested that Bombardier had also asked Ottawa for a repayable loan of $350 million  but it became clear that the province expected the federal government match its $1 billion loan in return for a near 50 percent stake in the CSeries jets project. There would be "unbelievable pressure" on this government to help the company, Ian Lee, an economics professor at Carleton University’s Sprott School of Business, predicted. Aid was definitely essential, because the project has saddled Bombardier with debt, forcing it to into a struggle to raise cash in order to keep it afloat.
Both the provincial and federal contributions would be in the form of a repayable loan but it is questionable whether they would ever be repaid according to independent economist Mark Milke. In fact, Milke also referred to the bailout loans as "corporate welfare" in the Globe and Mail of November 4, 2015.
A few days after his swearing-in, on 10 November 2015, Prime Minister Justin Trudeau told the Canadian Labour Congress that Bombardier Inc. must make a "strong business case" for federal aid. Trudeau agreed that the company exemplified important high value manufacturing "... an extremely important part of Canada for years to come. Aerospace is a great example of that, as is the auto sector and others"  but made it clear that the government's decision would be based on the best interest of Canadians, not on "emotion, politics or symbols".
Finally, in April 2016, the Federal government offered an aid package to the company but as of April 15, had not divulged the amount or conditions it imposed. On that date, some media reported that Bombardier had rejected the offer but an unnamed source advised Reuters that in fact, negotiations were still underway. On April 14, 2016, Bombardier shares were at a six month high based on rumors that Delta had ordered CSeries jets. On April 28, the order for 75 aircraft, with an option for 50 more at a later date, was confirmed by Delta. However, George Ferguson, senior airlines and aerospace analyst at Bloomberg Intelligence, told the Toronto Star that his calculations indicate that "Bombardier sold the CSeries for $4 million on average per plane less than what it costs to make". The company continued to request a $1 billion aid package from the federal government.
Government subsidy controversy
Brazil and Canada engaged in an international, adjudicated trade dispute over government subsidies to domestic plane-makers in the late 1990s and early 2000s. The World Trade Organization decided Brazil ran an illegal subsidy program, Proex, benefiting Brazilian plane-maker Embraer from at least 1999-2000, and that Canada illegally subsidized its indigenous regional airliner industry.
On 24 March 2011, Shanghai based Comac and Bombardier Inc. signed a framework agreement for a long-term strategic cooperation on commercial aircraft. The intention is to break the near-duopoly of Airbus and Boeing.
Products included in the programme include:
- Learjet 35
- Learjet 55
- Bombardier Learjet 40 XR
- Bombardier Learjet 45 XR
- Bombardier Learjet 60 XR
- Bombardier Learjet 70
- Bombardier Learjet 75
- Bombardier Learjet 85
- Bombardier Challenger 300
- Bombardier Challenger 30X
- Bombardier Challenger 605
- Bombardier Challenger 850
Bombardier Global family
In 2010, Bombardier launched an updated family of long-range business jets:
- Bombardier Global 5000
- Bombardier Global Express XRS
- Bombardier Global 5000 (with Global Vision Flightdeck)
- Bombardier Global 6000
- Bombardier Global 7000 Entry into service 2016
- Bombardier Global 8000 Entry into service 2017
- Bombardier CRJ100/CRJ200 (50 passengers)
- Bombardier CRJ700/CRJ900/CRJ1000 (70-100 passengers)
- Bombardier CSeries (100-160 passengers) Entry into service 2016 
- BRJ-X (Bombardier Regional Jet eXpansion) - introduced 80-110 seat jetliner in 2005 and revived by CSeries program
Unmanned Aerial Vehicles
Bombardier Aerospace has manufacturing, engineering and services facilities in 27 countries. The production facilities are located in Canada, the United States, the United Kingdom (Northern Ireland), Mexico and Morocco.
- Montreal Trudeau International Airport - Headquarters. Challenger 300, 605 and 850 final assembly and flight test. Global family interior completion.
- Montréal Mirabel International Airport - CRJ700/CRJ900/CRJ1000 and CSeries final assembly and flight test.
- Saint-Laurent, Quebec - Product Development Centre. Cockpit and aft fuselage manufacturing facility.
- Wichita, Kansas - Learjet family final assembly and flight test.
- Downsview Airport - Bombardier Dash 8 and Global family final assembly and flight test.
- North Bay Airport - Bombardier CL-415 final assembly and flight test.
- Querétaro, Mexico - Aircraft component manufacturing facility for Learjet 85, Challenger 605, CRJ700/CRJ900/CRJ1000 NextGen, Q400 NextGen and Global 6000/7000.
- Belfast, Northern Ireland - Aircraft fuselage, engine nacelle, wing manufacturing and assembly facility.
- Casablanca, Morocco - Flight controls for CRJ planes.
Bombardier Aerospace fiscal or calendar year delivery of regional, business and amphibious aircraft:
- Canadair - predecessor aerospace company (once part of Canadian Vickers and General Dynamics) acquired by Bombardier Inc. that became the core of Bombardier Aerospace
- de Havilland Canada - former Canadian unit of the British de Havilland Aircraft Company and later as part of Boeing
- Viking Air - Canadian manufacturer that purchased the type certificates from Bombardier for all discontinued de Havilland Canada designs (except for the Dash 8 Series 400), allowing Viking to build and sell them
- Learjet - American company now subsidiary of Bombardier
- "Aerospace Directory." Bombardier Inc. Retrieved on December 4, 2010. "400 Côte-Vertu Road West Dorval, Québec Canada H4S 1Y9." Address in French: "400, chemin de la Côte-Vertu Ouest Dorval (Québec)."
- "Inc. - Bombardier - Home". Bombardier. 2011-02-25. Retrieved 2011-03-02.
- A New Bombardier Jet Draws Only Tepid Demand Jet New York Times, July 14, 2008
- — Farnborough, U.K. Aerospace (2008-07-13). "Bombardier Press Release, July 13, 2008". Bombardier.com. Retrieved 2011-03-02.
- "Bombardier awards contract to Ghafari to redevelop CSeries Aircraft Manufacturing Complex". ATW Online. 2010-08-16. Retrieved 2010-08-16.
- The Globe and Mail
- "Bombardier signs financing deal with China's ICBC Financial Leasing". Calgary Herald. Retrieved 6 March 2011.
- Bombardier Aerospace Breaks Ground on New Moroccan Manufacturing Facility
- Choi Kyong-Ae (8 October 2012). "South Korea Consortium in Talks With Bombardier About Developing Passenger Plane -Source". Wall Street Journal. Retrieved 10 October 2012.
- Susan Taylor (January 21, 2014). "Bombardier cuts 1,700 jobs to save cash after jet delays".
- Kristine Owram (26 July 2014). "Bombardier’s aerospace restructuring takes a page from train division". Retrieved 22 August 2014.
- Lu, Vanessa (24 November 2015). "We’re being selective, Bombardier says of CSeries customers". Toronto Star (Toronto, Canada). Retrieved 25 November 2015.
- no by-line.--> (11 December 2015). Reuters. Thomson Reuters http://www.reuters.com/article/canada-bombardier-idUSO8N0WT01J20151211?type=companyNews. Retrieved 22 December 2015. Missing or empty
- "Plane truths". The Economist. ISSN 0013-0613. Retrieved 2016-02-19.
- Lu, Vanessa (18 December 2015). "Bombardier’s CSeries jet certified for commercial service". Toronto Star (Toronto, Ontario). Retrieved 19 December 2015.
- Tomesco, Frederic (21 December 2015). BloombergBusiness. Bloomberg LP http://www.bloomberg.com/news/articles/2015-12-21/bombardier-sees-aggressive-c-series-pricing-amid-order-drought. Retrieved 22 December 2015. Missing or empty
- no by-line.--> (18 December 2015). "Bombardier receives CSeries certification from Transport Canada". CBC News. CBC/Radio Canada. Retrieved 19 December 2015.
- Van Praet, Nicolas (13 January 2016). Globe and Mail (Toronto, Ontario) http://www.theglobeandmail.com/report-on-business/bombardier-ending-sales-contract-with-tag-aeronautics/article28141297/. Retrieved 21 January 2016. Missing or empty
- Reuters (19 January 2016). "Delta Airlines considering purchase of Bombardier C Series jets". Globe and Mail (Toronto, Ontario). Retrieved 21 January 2016.
- Van Praet, Nicolas (21 January 2016). "Bombardier snubbed as United to buy 40 Boeing jets". Globe and Mail (Toronto, Ontario). Retrieved 21 January 2016.
- Bloomberg (21 January 2016). "Boeing beats Bombardier to United airliner sale". Toronto Star (Toronto, Ontario). Retrieved 21 January 2016.
- "ANALYSIS: Delta Becomes the Largest CSeries Customer". Airways News. April 28, 2016.
- Evans, Pete (April 28, 2016). "Bombardier secures Delta order for up to 125 new CSeries jets". CBC News. CBC/Radio Canada. Retrieved April 28, 2016.
Airline consultant Pierre Jeanniot agrees that Delta is likely getting a discount of as much as 40 to 50 per cent on the planes for the public vote of confidence they are giving to Bombardier.
- Wingrove, Josh; Deveau, Scott (April 15, 2016). "Bombardier Said to Reject Aid Proposal From Canadian Government". The Washington Post. The Washington Post. Retrieved April 15, 2016.
A spokesman for Innovation Minister Navdeep Bains, who is leading the review of Bombardier’s request, declined to comment on the government offer
- Lampert, Allison; Ljunggren, David (April 15, 2015). "Canada gov't in 'constructive' talks on Bombardier aid: minister". Reuters Canada. Thomson Reuters. Retrieved April 15, 2016.
Federal government officials have said they do not want to imitate the structure of a separate 2015 deal the province of Quebec struck to support the CSeries, which some felt did not impose enough conditions on the company.
- Lu, Vanessa (April 28, 2016). "Despite Delta’s order, Bombardier wants Ottawa’s help". The Star (Toronto, Canada). Retrieved April 29, 2016.
- "COMAC and Bombardier Sign Strategic Agreement on Commercial Aircraft" (Press release). Bombardier. 24 March 2011. Retrieved 25 June 2011.
- Jon Ostrower (1 April 2011). "Many questions surround Bombardier/Comac partnership". Flight Global. Retrieved 25 June 2011.
- "NBAA: PICTURE: Bombardier reveals new Global business jet family". Retrieved 2010-10-17.
- — Atlanta Aerospace (2010-10-16). "Bombardier Grows Its Flagship Global Family with Two New Jets: the Global 7000 and Global 8000 Aircraft". Bombardier.com. Retrieved 2011-03-02.
- Bombardier postpones CSeries entry into service until 2015 16 January 2014, retrieved 13 March 2014
- aerospace.bombardier.com - Worldwide Presence
- aerospace.bombardier.com - About Us
- Bombardier in Canada
- Bombardier in the USA
- Bombardier in Ontario
- "Bombardier Inaugurates Learjet 85 Aircraft Component Manufacturing Facility in Queretaro, Mexico". Reuters (Press release). Bombardier. 21 October 2010. Retrieved 14 May 2012.
- aerospace.bombardier.com - Bombardier in Mexico
- belfast.aero.bombardier.com - Capabilities
- Bombardier Aéronautique Maroc : Démarrage de la production à Casablanca dans une usine provisoire L'Usine Nouvelle, 8 February 2013
- Bombardier Posts Record 370 Aircraft Deliveries.
- Bombardier Announces That Bombardier Aerospace is On Target With 370 Aircraft Deliveries.
- Annual Report Year Ended January 31, 2003 - Bombardier.
- Bombardier Delivers 329 Aircraft for Fiscal Year 2004/05: Second Consecutive Year of Increased Deliveries.
- Bombardier aircraft – Fiscal year 2005/06 deliveries.
- An Exceptional Year for Bombardier Aerospace in Terms of Deliveries and Orders: 361 Aircraft Delivered and 698 Orders Placed in Fiscal Year 2007/08.
- Bombardier Aerospace Delivers 353 Aircraft and Records 378 Net Orders in Fiscal Year 2008/09.
- Bombardier Aerospace Bombardier Aerospace Delivers 302 Aircraft in Fiscal Year 2009/10.
- Bombardier Aerospace Delivers 244 Aircraft in Fiscal Year 2010/11.
- Bombardier Aerospace Delivers 233 Aircraft and Receives Orders for 481 Aircraft in 2012.
- Bombardier Aerospace Delivers 238 Aircraft and Receives Orders for 388 Aircraft in 2013.
- Bombardier Aerospace Delivers 290 Aircraft and Receives Orders for 282 Aircraft in 2014. from 2014 annual report
- Bombardier Aerospace Orders/Deliveries from 2015 annual report
- Commercial Aircraft and Airline Markings by Christopher Chant.
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