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Airbus, Bombardier End CSeries Talks
Airbus and Bombardier have each confirmed that the two companies had explored “certain business opportunities” together but have since ended talks following a report by Reuters that Bombardier had offered a majority stake in the CSeries to the European airframer. Both companies said they wouldn’t comment further, but Bombardier noted that it would continue to explore “initiatives” such as a possible participation in industry consolidation. (www.ainonline.com) More...
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I think this aircraft must be killing Bombardier. 2 years late, and sluggish orders and robbing Peter to pay Paul by selling off other parts of the business to raise cash. A number of years ago, they had the opportunity to go ahead with the C-Series at the same time that Embraer was introducing it's 170/175 series of regional jet. At that time Bombardier decided not to pursue it. A fatal mistake in my opinion. Embraer has enjoyed considerable success with its 170/175/190/195 series of regional jets and found the market for them. Now they have about a 10 year jump on them and it is going to be very difficult for Bombardier to penetrate that market, even it was ready for EIS tomorrow. A day late and a dollar short as they say. Shame as it's probably a good aircraft, but likely destined to be an "also ran".
On our local TV here in Quebec there was talk of trying to get Chinese partners, and, of course, government involvement.
It doesn't make any sense that Bombardier would approach Airbus and offer them a majority stake in the program. Any such deal would require regulatory approval which would take some time and could be blocked. The Quebec government has made given repeated assurances that they will come to Bombardiers aid if they are in a cash crunch. Bombardier is so close to realizing their dream. It would be a tragedy to throw in the towel know they are so close. The C Series is the most advanced single isle jet in the world. I think the crash in oil prices hurt sales since airlines don't feel pressure to buy fuel efficient jets in this environment.
It may be the most advanced jet but for whatever reason, no sales is no sales and the development of it has gutted resources and it's core business. Greed.
The Beech Starship was the most advanced aircraft of its type, see how well that turned out. Eclipse was the first VLJ, didn't end well either. In aviation tried and true beats innovative every time.
This is good. Not a good deal for Bombardier.
Interesting that talks broke off shortly after light shined on them. Maybe they should put that particular rock back down.
