The Cseries was a write down the lear was a WRITE OFF. Now that project was retarded, I have to admit there is no justifying spending 2.6B on a mid size jet. For that kind of dosh you would be able to deliver a supersonic jet.
Hey brother can you spare a $billion to bailout Bombardier?
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They went from inventing the snowmobile to the 3rd largest civil aerospace company on the planet. Please point out any similar Canadian success. BTW BBD is the lynch pin of Canadas entire aerospace strategy, and if you understand how big that industry is relative to the size of Canada, you would consider it one of the greatest successes of govt industrial policy in modern history. The next most successful Canadian venture being Maple Syrup followed by Ice Wine. ...lol
To summarize, bbd is canada greatest gem. It is really the pinnicle. It has made some errors, it is in a difficult business, but the potential is HUGE. The Cseries over 20 years could represent as much as 150-200B of Canadian GDP, that is simply enormous and something Canada should hold on to with both arms. I am not saying a carte blanche, but if any business is worth saving in Canada BBD is definitely one.
OK, platitudes.... Doesn't really matter what I'm wishing for, matters what Canada is going to do.... So far, not much. If the answer to not having a single viable industrial company on the global stage is infrastructure projects and welfare programs.... Can I introduce you to Greece....
You forgot rapid transit systems.
Okay, but how's it fairing recently? I suppose China subsidizes its industries. It's been mentioned here that the U.S. govt subsidizes its defense industry.
Doesn't Bombardier have any blasted plants outside of Quebec?
If the Brits and French need to pool their efforts to compete in the global mid-sized commercial airline industry what makes you think an eco my smaller than California can compete.
Someone said good money after bad, that might be harsh, getting a 50% stake for only $1b after the company writes down $3.2b looks like a fire sale.
The strong Canadian dollar of the last 5 years hurt BBD for sure, but it was still profitable. It needed a new product to move beyond the regional jet market, and that is Cseries. It has still been mostly profitable each quarter, but of course the Cseries and Global 7000 are the great hope for the future. They build the Q400 and Global business jets in Toronto.
They make Dash-8's and Q400's in Toronto. That used to be called DeHavilland Canada.
So it's in the interest of Ontario to throw a little money into the operation. If Bombardier had to sell the Q400 production to foreign interests, they would rapidly end production, retrieve all the patents and intellectual value, and promote a foreign type. At the same time, lay off everybody. This scenario has happened already, especially to pharmaceutical companies. Something similar happened to Nortel: it was liquidated and its valuable patents were auctioned off to the highest bidder, all foreign.
Problem is nobody is interested in their planes. According to Globe and Mail they haven't had a C series order for over a year.
I agree.
But any free money for bbd must come with strings and the number 1 is no more dual share class structure.
Sure
I will start
http://www.cnn.com/2011/09/19/opinion/kotlikoff-us-debt-crisis/
Don't get too cocky
I believe airbus sells more commercial planes than Boeing actually so you may be on to something.
Mind you I prefer flying in a Boeing passenger plane as opposed to airbus. I like supporting the underdog
Haven't "we", (aka the Canadian taxpayer), been bailing out BBD for years????
I really haven't been following, but I seem to recall this reoccurring story as far back as when I was a kid, and my dad complaining about it.
And don't they still have a very successful snow and sea "doo" & ATV division?
I really haven't been following, but I seem to recall this reoccurring story as far back as when I was a kid, and my dad complaining about it.
And don't they still have a very successful snow and sea "doo" & ATV division?
That would be the plant that can't supply the subway cars the TTC ordered and as a result they are now being sued by City of Toronto, the few cars that were delivered were sent back with defects.
These are fire sale prices, that is why there is a buy back clause where the Bomber can buy it back in better times. At pre-set prices.
You can call it a bail out, but the Fed/Prov governments have always gotten their money back while protecting jobs.
The world is in recession, The aviation industry goes through times of low and high demand. A few years ago when the BRIC countries were doing well, demand for new aircraft were high.
If Bomber is left to die, it would be the Avro Arrow all over again.
