• Thanks for stopping by. Logging in to a registered account will remove all generic ads. Please reach out with any questions or concerns.

Seeking an excuse to spend Defence $$ on a Bombardier plane

Ostrozac

Army.ca Veteran
Reaction score
366
Points
930
CBH99 said:
They aren't manufactured in Quebec?  Good to know.  I didn't know Bombardier manufactured aircraft outside of Quebec.

Bombardier purchased de Havilland Canada from Boeing in 1992, including the manufacturing facility at Downsview in North York. They assemble business jets and the Q-Series Dash 8 there. Bombardier also assembles Learjets in the US, and has major parts manufacturing facilities in Mexico and the UK.
 

Oldgateboatdriver

Army.ca Veteran
Reaction score
695
Points
910
Similarly, the Bombardier Transport division builds trains, subways and tramways in six different countries, including Canada, the US and Mexico. With two different provinces for Canada: Quebec and Ontario. Other than the Toronto subway problem, they have numerous and larger sales around the world in that field. And BTW, the Toronto subway trains: They are assembled at the Ontario plant of Bombardier, from parts made at the Mexico facility. But to solve the problems, they had to bring in the Quebec management (La Pocatiere plant) in to straighten out the Ontarians. So  ;)

Bombardier is actually the number one manufacturer I exclude the oil fields as they are resources industry - not manufacturing, but in the oil field, they would rank third, at about 55% of the size of Suncor) in Canada for size, which few people realize - bigger by itself than the next two.
 

MarkOttawa

Fallen Comrade
Fallen Comrade
Reaction score
147
Points
710
Bye bye CRJ and how many jobs at Mirabel?

Why Mitsubishi Heavy May Want Bombardier's Money-Losing CRJ Regional Jet Line

Bombardier may be close to completing its exit from the airliner business, confirming Wednesday morning that it’s holding talks with Mitsubishi Heavy Industries to sell its once-mighty CRJ regional jet line. For Mitsubishi Heavy, which has struggled to make the climb from an aircraft component supplier to a jet maker, the deal may be less about the money-losing CRJ than acquiring its extensive service network.

Tokyo-based Mitsubishi Heavy is years behind schedule on the MRJ, a twin-engine regional jet that was initially expected to be launched in 2013 with Japanese airline ANA. With certification of the 90-seat version believed to be on track for 2020, acquiring the competing CRJ program would solve the knottiest remaining problem for Mitsubishi: product support and maintenance, says Richard Aboulafia, an aerospace analyst with Teal Group. “They have no experience at that, and no infrastructure,” he says.

...unclear whether Mitsubishi would want to keep producing the CRJ, scope clauses or no, given its unprofitability. The company could choose to fulfill current orders and wind it down, says Aboulafia.

Beyond the CRJ maintenance network, Mitsubishi could benefit from adding experienced engineers from the Bombardier program who could aid in developing the MRJ and in the complicated regulatory certification process...
https://www.forbes.com/sites/jeremybogaisky/2019/06/05/its-not-the-planes-that-mitsubishi-heavy-is-after-in-eyeing-purchase-of-bombardiers-crj-regional-jet-line/#606dbefe4443

So CRJ line shuts down, lots of job losses. Airbus says to feds and Quebec:

Gosh, all those CRJ jobs gone now that Mitsu is going to stop making the plane [having got all it can to finally get MRJ into shape]. Wouldn't it be a pity if we didn't get the new RCAF fighter contract for the Eurofighter, with some assembly etc. for Bombardier, and had to move all those A220 jobs to Alabama as soon as we legally can.

Have a nice day.

Mark
Ottawa
 

MarkOttawa

Fallen Comrade
Fallen Comrade
Reaction score
147
Points
710
Bombardier out of commercial airliners business:

Bombardier exits commercial aviation with $550-million sale of regional jets to Mitsubishi
News of the deal sent Bombardier shares up as much as 5 per cent

Bombardier Inc said on Tuesday it will sell its money-losing regional jet business to Japan’s Mitsubishi Heavy Industries Ltd (MHI) for US$550 million in cash, in a deal marking the Canadian plane and train maker’s exit from commercial aviation.

Montreal-based Bombardier had combined its aviation units to focus more on profitable business jets and passenger rail cars, after facing a cash-crunch in 2015 while bringing its flagship commercial jet to market.

News of the deal sent Bombardier shares up as much as 5 per cent in morning trade.

As part of the deal, which is expected to close in the first half of next year, the Japanese firm will also take over a US$200 million debt.

“We see the transaction as positive as it generates a return better than we had anticipated and ends the company’s exposure in a program which we believe was a drag on earnings,” AltaCorp analyst Chris Murray said in a note.

“In addition to Bombardier focusing on its core business jet and rolling stock/transportation businesses, the potential leverage reduction associated with this spinoff could be greater than we had anticipated,” Citi analyst Stephen Trent wrote in a note.

Bombardier will continue to assemble its regional jet planes (CRJ), but will stop making the aircraft in the second half of 2020, after it finishes delivering its remaining orders [empasis added].

CRJ’s profitable aftermarket sales, engineering expertise and heavy maintenance centres in the United States, would be useful for Mitsubishi, which is trying to develop and certify its delayed regional jet program, the MRJ.

“It’s an important step for us as a whole,” said Dan Lochmann, a spokesman for MHI.

About 1,600 people work on the CRJ program, including production employees as well as employees who provide aftermarket services. About 40 per cent of employees are in Canada.

Mitsubishi is “committed” to Bombardier’s workforce such as engineers and customer support workers, Lochmann said by phone from Japan. He could not comment on CRJ production workers [emphasis added].

Lochmann could not say whether Mitsubishi would set up a facility at Mirabel for the engineering staff.

The deal would be a boost for Japan’s civil aviation ambitions, even as Canada exits the market for commercial jetliners with less than 100 seats.

Bombardier and Mitsubishi had previously said they were holding talks over the regional jet program, confirming a report in industry news site The Air Current.

Mitsubishi is trying to develop its long-delayed MRJ regional jet program, which has been rebranded as “SpaceJet.”

The Japanese firm is trying to certify the plane, which has been delayed by several years with its first customer, ANA Holdings Inc, now expecting delivery in 2020 rather than in 2013 as originally planned.

Bombardier’s production of regional jets is expected to stop in the second half of 2020, following the delivery of the current backlog of aircraft.

Shares of Bombardier have risen 7.9 per cent this year compared with a 15.4 per cent increase in the main Toronto Stock Exchange index.
https://business.financialpost.com/transportation/airlines/bombardier-to-sell-regional-jet-program-to-mitsubishi-for-550-million-in-cash

More:

...
The contract stipulates that the Japanese manufacturer take over the maintenance, support, refurbishment, marketing and sales activities for the jets, including services and support facilities in Montreal, Toronto, Bridgeport, West Virginia and Tucson, Ariz.

All in all, the CRJ business has about 1,600 employees worldwide. The plan is for Mitsubishi to keep about 1,200 of them.

One key asset Bombardier is not selling as part of the deal is the main CRJ manufacturing facility in Mirabel, Que., along with the roughly 375 people who work there. The company will need that plant and those workers to  continue to supply spare parts and manufacture the jets until the sales backlog of 42 jets has been cleared, which is expected to last until the second half of next year...
https://www.cbc.ca/news/business/bombardier-mitsubishi-1.5188779

What then for 375 production workers?

Mark
Ottawa
 

Fishbone Jones

Army.ca Relic
Subscriber
Donor
Reaction score
1,781
Points
1,060
With luck, this'll mean taxpayers won't be on the hook for any more free, forgivable loans to the Laurentien Elitists that own and operate Bombardier.
 

Good2Golf

Moderator
Staff member
Directing Staff
Subscriber
Mentor
Reaction score
12,021
Points
1,360
Fishbone Jones said:
With luck, this'll mean taxpayers won't be on the hook for any more free, forgivable loans to the Laurentien Elitists that own and operate Bombardier.

They still make business jets, trains, skidoos, Sea-doos and motor-trikes...lots of potential for taxpayers to still get in on the action.  :nod:

Regards
G2G
 

Spencer100

Army.ca Veteran
Reaction score
1,375
Points
1,040
Bombardier is now just corporate jets and trains

BRP is Sea Doos, Ski Doos, and CAN AM different company now

Viking (Longview) is all of DHC 02-08 plus water bomber.  They are building the Twin Otter and just got an order for 5 new build water bombers, plus the end of the Dash 8 production orders

Mitsi will be the CRJ they want the engineers, service division

Airbus is A220 the old CS100
 

Good2Golf

Moderator
Staff member
Directing Staff
Subscriber
Mentor
Reaction score
12,021
Points
1,360
Spencer100 said:
Bombardier is now just corporate jets and trains

BRP is Sea Doos, Ski Doos, and CAN AM different company now

Viking (Longview) is all of DHC 02-08 plus water bomber.  They are building the Twin Otter and just got an order for 5 new build water bombers, plus the end of the Dash 8 production orders

Mitsi will be the CRJ they want the engineers, service division

Airbus is A220 the old CS100

Ah, thought BRP was a subsidiary.  Happily stand corrected, although disappointed I can get a taxpayer/subsidizer discount on a Sea-Doo...  :(
 

MarkOttawa

Fallen Comrade
Fallen Comrade
Reaction score
147
Points
710
Look increasingly like there will soon no longer be any Bombardier Aviation on which to spend federal money:

1) Airliners:

Airbus likely to acquire Bombardier's remaining stake in A220 passenger jet -sources
https://business.financialpost.com/pmn/business-pmn/airbus-likely-to-acquire-bombardiers-remaining-stake-in-a220-passenger-jet-sources

2) Bizets and rail:

Bombardier in advanced talks to sell core units as debt woes loom
https://www.theglobeandmail.com/business/article-bombardier-in-talks-to-sell-either-of-its-main-businesses-as-it-tries/

3) Earlier, De Havilland and Canadair designs:

Family control preserved Bombardier’s independence but at huge cost
https://www.theglobeandmail.com/business/article-family-control-preserved-bombardiers-independence-but-at-huge-cost/

Mark
Ottawa
 

dapaterson

Army.ca Relic
Subscriber
Donor
Reaction score
11,577
Points
1,090
Their sole remaining business line will be extorting bailouts from government.
 

Good2Golf

Moderator
Staff member
Directing Staff
Subscriber
Mentor
Reaction score
12,021
Points
1,360
Global 6000 x 5 to replace CC-144 VIP fleet.  Don’t count BBD out of the game, yet!
 

Spencer100

Army.ca Veteran
Reaction score
1,375
Points
1,040
CS Series to Airbus
Dash 8 to Viking
CRJ to Mitsubishi
Shorts and Structures to Spirit aerosytems
And it looks like the Global and lear lines to Textron according to WSJ this week. 

This is the end of a true Canadian Aerospace Champion and the slow death of aerospace industry in this county.  Sure there will be some plants and other engineering work but for all intents the home grown industry is over.

We are watching the
 

MarkOttawa

Fallen Comrade
Fallen Comrade
Reaction score
147
Points
710
And a fuller account of Bombardier's auguring in at this post--which of rail or bizjets will survive (and remember rail biz is mainly outside of Canada)?

The End of Bombardier as We Know It–the All in the Family Debacle
https://mark3ds.wordpress.com/2020/02/08/the-end-of-bombardier-as-we-know-it-the-all-in-the-family-debacle/[/color]

Mark
Ottawa
 
Top