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Learjet

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UPDATE: Well, things are really BAD with Bombardier and the CSeries program, as in desperation the company has offered to sell it to Airbus and Embraer for for next to nothing, a desperate plea and MAYDAY signal for help in selling the CS100/300 ! the program is in MAJOR trouble, worst than anyone thought possible. The fact that Airbus and Embraer said NO to the program and confirming there are serious production problems with the aircraft has to be scary for customers, airlines, investors, employees and any would be ‘white knight’. Its worst then I imagined, and when industry ‘guru’ Richard Aboulafia of Teal Group says “Bombardier should pull the plug” and “that this is the beginning of the end for the very troubled program”, as I have always advocated it is time to start talking to Comac (China) about “Combardier” or pull the plug on the program. Comac is very interested in Bombardier, the two OEM’s already cooperate on commonality between the CSeries and the C919, and they need each other, one needs money the other needs industry know how and experience, and Bombardier is the only commercial jet airliner manufacturer in the world one can buy today. Bombardier (TSX:BBD.B) rose last week on news that United Airlines may buy a fleet of 100+ seat airliners if its pilots agree to a 2 year contract extension, its a ‘game’, Delta’s CEO Richard Anderson tried the same thing this July with a 60 aircraft/$US 4.0 billion order/ ‘carrot’ with his pilots, they rejected his deal, and he cancelled the order, relax we are very far away from any major US airline order. Bombardier investors are hard-up for any good news, stock is very volatile right now and I am looking for it to break the $1.00 mark before Christmas. Latest launch of the Q400 “combi” is troubling to me, up to 50 passengers in the front and 9,000 lbs of cargo in the back through a small 1.72m x 0.71m door ?, its a weight and balance operational nightmare on a 32.81 meter long “teeter totter” (aka seesaw), good luck with that ! Bombardier needs money, lots of it by mid-2016, look for it to sell Learjet for sure, and then a part of Aerostructures and Engineering Services, part of Transportation, “pause” the new G8000 program and bring in the Quebec government through Caisse (2nd largest pension fund in Canada) and Quebec’s public pension manager, poor pensioners in Quebec ! These are truly dark days for Bombardier, the next 10 weeks will determine its future one way or another.

The last time I wrote about Bombardier was September 15, 2015 and I was thinking at the time, it cannot get worst, but here I am 24 days later and I am seriously worried about the viability of Bombardier’s viability as a going concern, as the bad news just keeps getting worst, the fact Bombardier … Continue reading

ABSTRACT: Bombardier Aerospace is changing its top management for the better and hopefully mediocrity within it’s ranks is on its way out at all levels, new CEO Alain Bellemare has ditched his President of Commercial Aircraft, Mike Arcamone and replaced him with Fred Cromer (ex-President of ILFC) while Swiss Global Air Lines will be the CSeries launch customer in 3Q/2016. The CSeries still has many issues ahead, flight testing schedule will change, entry into service (EIS), deep price discounting by Boeing and Airbus (40% to +50%). A major slow down in demand for business jets in China and Russia spells trouble for the Global brand, while Russia’s IFC is reviewing its order for 32 CS300’s and another 75 orders are highly questionable (in fact 44% of orders are questionable), just as more CSeries orders are badly needed, especially a BIG North American customer. Future of Learjet is up in the air, as some big changes are a must for restructuring the company, as stock price languishes below CAD$ 3.00 since February 10th and compared against it’s peers Bombardier financial performance is very poor, how long will it remain the world’s only manufacturer of trains and planes ? The good news is that there is change, and with that comes hope for everyone, new people bring new ideas, new enthusiasm and new energy, Bombardier for too long did the same things over and over again, expecting different results and off course failed to produce different results, now I see a some light at the end of the dark tunnel for Bombardier Aerospace, in the end success in business is ALL about having the right people in the right positions !

For the regular readers of my Blog, you know that I have been very critical of Bombardier Aerospace for some time, and I do take pride in the fact that I believe I was spot on for calling for BIG changes at the top. Back on January 20, 2015, I was the first to call … Continue reading

Bombardier Aerospace is finally reorganizing, 1,800 employees will be laid off on top of the 1,700 laid off in January, last week’s Farnborough Air Show was disappointing with only 5 Q400 orders booked and Embraer’s E2 line launched only 13 months ago has surpassed the 5 years of “Game Changing” CSeries sales efforts by 75 aircraft (278 vs 203), something is seriously wrong in Montreal.

Well, the news out of Bombardier Commercial Aircraft just got worst with the announcement that, Mr. Guy Hackey, CEO/President of Bombardier Aerospace since 2008 will “retire” due to organizational changes, that may see up 1,800 employees laid off on top of the 1,700 laid off in January, the bad situation with the CSeries is terms … Continue reading