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SUMMARY: Canada’s charter airlines struggle, CanJet Airlines (owned by IMP) future in serious doubt while Air Transat limps along in its recovery, but Air Canada’s Rouge is growing and on its heels. Meanwhile the 3 ultra low cost airline candidates struggle to raise money, with Jet Naked (Enerjet) lost its 3 star ULCC (ultra low cost carrier) executives and now Enerjet is being sued by them for breach of contract. Meanwhile, NewLeaf Travel Co. Inc. ties up with Flair airlines to operate 2 x B737-400’s for it, IF and WHEN it raises sufficient start-up capital. Over in Vancouver, Canada Jetlines orders 5 and options another 16 Boeing B737Max7’s before it even has start-up financing in place ?? Interesting developments in this segment, and worth watching, as Canada needs a ultra low cost airline (ULCC) to offer low cost air travel to Canadians. Canada is the ONLY large country left without a LCC, and is controlled by a duopoly. Troubled CanJet Airlines has the potential to be a ULCC and save itself from doom, but right now it looks like no ULCC will start-up in Canada this year and CanJet will most likely be shut down, leaving NO low cost champion in Canada, and 34 million Canadians are prisoners to only 2 airlines domestically, a country that is only 2% smaller than all of Europe put together !

The first 4 months of 2015, have brought mixed results for some of Canada’s airlines. In big trouble is one of Canada’s leisure and ad hoc charter airlines, Halifax based CanJet Airlines, owned by IMP Group International, a diversified conglomerate owned by the Rowe family, that now employs 4,500 employees in 6 Divisions in Aerospace … Continue reading

ABSTRACT: Bombardier announces its 4th round of lay-offs in 17 months, another 1,750 employees are let go on top of 5,200 laid-off already. The sacred “CASH COW” of Bombardier Aerospace, the high margin Ultra-Long Range Global brand is facing a softening in its market segment. The Bombardier Global brand (the $52M G5000 and $62M G6000) keeps Bombardier Aerospace alive, generating $4.5B (on 80 deliveries) in revenue in 2014 (43% of Aerospace revenue, 60% of Business Jet revenue with only 27% of deliveries). New competition from the Gulfstream’s G500/G600 and the Dassault Falcon 8X is threatening Global sales and margins at a time when Bombardier is bleeding cash certifying the CSeries and its new Globals ($75M G7000 and $71M G8000). Presently Bombardier Commercial has only 90 CRJ’s in backlog (18 months of production) and only 52 Q400’s in backlog (26 months of production), while the CSeries with $5.3B in deferred program costs and big price discounting by Airbus, Boeing and Embraer, will see every CSeries sold at a HUGE loss for many years to come. Now Bombardier is looking to sell its rail unit to raise cash, and in all seriousness all of this leaves the new Global 7000 and 8000 as the only hope for a brighter future at Bombardier Aerospace, and the possibility of a future Chinese acquisition of Bombardier Commercial (aka “Combardier”) is very real.

Once again Bombardier has acknowledged that things are not well with the world’s only plane and train manufacturer, and will lay-off another 1,750 employees on top of the 5,200 already announced since January 21, 2014. The big hit will be in Montreal (completions) with 1,000 employees, Toronto (assembly) with 480 employees and Belfast, Ireland with … Continue reading

ABSTRACT: Canadian Coast Guard (CCG) buys 7 Bell 412EPI’s for $C 155m by a sole source contract with Bell Helicopter that was to create jobs in Canada, 20 days later Bell announces 300 layoffs in Mirabel plus the news it will produce the new $1.2 m Bell 505 JetRanger X in Louisiana, and not in Mirabel where Bell JetRangers have been produced since 1986. The Bell 412EPI CCG order follows another CCG order worth $C 172m in May, 2014 for 15 Bell 429’s. The Canadian Government has forked out $C 327 million of Canadian taxpayers money in 12 months for 22 Bell helicopters, and Canadians got NO competition, NO tangible discount, NO new jobs, NO new production and NO industrial offset program, but we got layoffs and a snuff on the Bell 505 program, whose the genius behind this deal ? oh yes of course, Public Works and Government Services Canada (PWGSG). Bell says it has to layoff due to “global commercial orders and deliveries in the medium market continue to be significantly below forecast”, don’t believe it, 178 commercial deliveries in 2014 was one its best years ever, Bell’s problem lies in not having a helicopter in the growing and lucrative large commercial helicopter segment and having relied too much on military orders (62% of its revenue), now the US Department of Defense is significantly decreasing its budget, and Bell is worried, just like UTC’s Sikorsky division, finally no wars and these OEM’s struggle ! proof that the military industrial complex is still very real, some businesses need and want war to make profits, sad no ?

Though it has received little notice, last week’s announcement by Bell Helicopter (one of 5 subsidiaries within Textron Inc., NYSE:TXT), that it will layoff 300 workers at its Mirabel, Quebec plant and another 800 will be “downsized” globally. ————————————————————————————————————————————————————————————- Seven of these new Bell 412EPI helicopters will be join the Canadian Coast Guard (CCG) starting … Continue reading