Can Bombardier Fly With the Big Boys?Issue 02-08-16 |
The market for aircraft is cyclical, and timing can be critical when launching new planes. A few years ago when fuel prices were high, the prospect of a highly fuel-efficient jet from Canada-based Bombardier seemed promising. While Bombardier had competed successfully with Brazil's Embraer SA in the market for regional jets, the move to larger 100-plus seat aircraft brought it in direct competition with Boeing and Airbus. Bombardier's launch strategy had it targeting a number of regional airlines worldwide, and it did not try to compete for large orders (with significant discounts) from major airlines.
That entire launch strategy has now been called into question, as orders for Bombardier jets has fallen significantly behind target, placing severe finanical strain on the company. While Bombardier may be a small company in the global aircraft industry, it is a big company in Quebec and Canada and may fall into the "too big to fail" category for the government.