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ABSTRACT: Bombardier takes another credibility hit, stock drops 25% in one day as investor confidence is shaken and they are selling, another senior executive departs, the Learjet 85 is “paused” with a $US 1.4 billion write down, certifying 4 new jets at once costing $US 6.9 billion was “nuts”, the Q400 and CRJ’s programs are near their end, another 1,000 employees are to be laid off on top of 2,000 last year, corporate credit rating cut, talk of a Q400 and CRJ assembly line in China, only 243 firm orders for the CSeries after 78 months of effort, and probably 100+ will NOT take delivery, Alenia a major CSeries subcontractor sues for $US 121 million, CSeries EIS not till 2016, low fuel prices diminish the fuel efficiency argument for CSeries, while it’s launch customer is a secret ? sell Commercial Aircraft Division to China’s COMAC and create Combardier ? capital markets worried about liquidity and management, Business Aircraft Division now discounting some aircraft, Learjet cannot survive on only 33 Learjet 70/75 sales (+/- $US 335 million) a year, is it doomed ? sell it off ? with a cashflow of only $US 800 million in 2014 will Aerospace have the cash to complete certification and produce the $US 1 billion Global 7000/8000 business jets and the $US 4.5 billion CSeries ? time for an outsider as CEO – again ?

Bombardier, the world’s only plane and train manufacturer continues to disappoint shareholders, employees and customers, and on Wednesday, January 15th, we saw the wall crash down, when Bombardier stock (TSX:BBD.B) crashed downwards by 25.85% in one day ($US 1.8 billion in market capitalization) on volume of 57 million shares, to $CAD 3.07 from $CAD 4.14, ouch … Continue reading

SUMMARY: Russia’s United Aircraft Corporation (UAC) changes its CEO/Director General as the manufacturer struggles with the SSJ-100 regional airliner, deliveries to Belgium’s VLM Airlines and Switzerland’s Comlux Aviation could not have come at a worst time for EU/US and Russian relations, Russia is very committed to having Russians flying on Russian airliners, but at what price ? the SSJ-100 deliveries began in April, 2011 and only 84 have been delivered by the end of 2014, with 13 in storage and 3 international airlines and 1 Russian airline having gone bankrupt operating them.

Troubled United Aircraft Corporation (UAC), which since 2006 controls all the aircraft manufacturers and design bureaus in the country,  is changing its leadership. The new CEO/General Director is Deputy Industry and Trade Minister Mr. Yury Slyussar as he replaces Mr. Mikhail Pogosyan who has held the post since February 2011. You can read more about … Continue reading

ABSTRACT: MAYDAY ! Russian Ruble (RUB) half its value of a year ago and oil prices at a 6 year low of $US 48/barrel while Russia needs the Brent oil price at $US 105/barrel to balance its budget and EU/US sanctions in place with more to come, the Russian airline industry is feeling the pain, Transaero Airlines asks for and gets State Aid while UTAir is also in line for a bail out, will national flag carrier Aeroflot and others be next ? how will the commercial aircraft industry move forward with the Sukhoi SSJ-100 and Irkut MC-21 under these harsh economic times in Russia ?

The deteriorating economic situation in Russia and the political tensions from its annexation of the Crimea and support for separatist rebels in Eastern Ukraine is causing huge problems for the Russian aviation industry, and Russia is no busy bailing out its airlines, 2nd largest Russian airline Transaero Airlines and smaller UTAir are getting state aid … Continue reading

SUMMARY: Russia’s civil aerospace industry and life after the annexation of Crimea and a new Cold War. Now EU/US have applied 4 rounds of economic sanctions, now its time to add Russia’s Aerospace industry to those sanctions, VLM Airlines plan to bring the Sukhoi SuperJet 100 to Western Europe, appropriate at this time ? and what is the future for Russia’s 6th placed civil aviation industry with a weak Ruble and oil below $50 a barrel and with less than 1% of the global commercial aircraft market (in $ terms) ? will the Irkut MC-21 (to be re-designated as Yak-242 in 2016) even fly now ? Russia now scrambling to have Russians flying on Russian airliners, Bombardier can’t dump the Q400 program fast enough on the Chinese, while ATR can’t build the ATR-72-600 fast enough with 280 in backlog and 160 firm orders in 2014 alone ! While Turkey looks to stretch the AN-158 to 120 seats.

The Russian economy is taking a beating these days, the 4 rounds of EU/US sanctions have hurt a bit but the big hurt comes from falling oil prices (below $US 54 a barrel today) which accounts for 75% of Russia’s exports and the Ruble (RUB) is now down 50% to only 58.5 RUB to one … Continue reading