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Bombardier Aerospace

Corporate Address
Bombardier Aerospace:
400 Côte-Vertu Ouest
Dorval, Québec
Canada H4S 1Y9
Website
http://www.bombardier.com/en/aerospace.html

Bombardier is a global transportation company, headquartered in Montréal, Canada. It is present in more than 60 countries on five continents and is active in the manufacture of products, systems and the provision of services for the aviation (commercial and business jets) and rail transportation sectors. The division responsible for the company's aircraft manufacturing and related services is Bombardier Aerospace. The division is headquartered in Dorval, Quebec and ranks as the world’s third largest civil aircraft manufacturer, employing of 37,700 people. Its aircraft range includes:

  •  Business aircraft - Learjet, Challenger and Global aircraft families;
  •  Commercial aircraft - new C Series program, CRJ Series and Q-Series aircraft families;
  •  Amphibious aircraft - Bombardier 415 and Bombardier 415 MP aircraft;
  •  Jet travel solutions - Flexjet;
  •  Specialised aircraft solutions - Bombardier aircraft modified for special missions;
  •  Aircraft services and training - aircraft parts, maintenance, comprehensive training, technical support and publications, and online services.

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133 total articles

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WestJet prepares to lock in unit revenue growth to outpace cost inflation in 2017

9-Nov-2016 10:00 PM

Canada’s second largest airline WestJet believes it can attain a positive unit revenue result in 1Q2017, joining many other North American airlines in outlining specific timeframes for the reversal of negative trends. Unlike performance of most airlines in the region that are predicting sequential improvements from 3Q2016 to 4Q2016, WestJet’s performance will worsen during the last three months of 2016. The factors driving WestJet’s deeper unit revenue decreases include timing of the year-end holidays, competitive capacity pressure in warm weather markets, and fare matching of the start-up competitor ULCC NewLeaf.

Although WestJet believes it will make an important turn in its unit revenue performance in early 2017, it faces some cost inflation for the full year as it adds a larger number of smaller Bombardier Q400 turboprops, which have higher operating costs but in fact also help drive bottom line profitability. Although at this point WestJet cannot forecast its unit revenue performance for FY2017, its goal is to post unit revenue growth that outpaces unit cost increases.

Spirit Airlines expresses cautious optimism about pricing improvement in the sagging US market

2-Nov-2016 8:15 PM

Similarly to the largest US global network airlines, the ULCC Spirit is welcoming signs of a modest improvement in the US pricing environment. The company’s decline in total unit revenues year-on-year in 3Q2016 slowed to single digits – compared with some of the steepest decreases recorded among US airlines for the past year. If the overall trends in the US market stick Spirit’s sequential unit revenue improvements should continue, reflected in projected further improvement in 4Q2016. However, unlike some US airlines, Spirit is not offering a specific timeframe for a return to positive unit revenue.

Spirit also posted sequential improvement from non-ticket revenue declines in 3Q2016. The airline has been battling soft pricing in baggage fees tied to lower ticket prices. It has been in the process of incorporating ways to shore up non-ticket revenue, including adopting more dynamic pricing of its ancillary products.

Throughout 2016 Spirit has retained a number of smaller-gauge Airbus A319s as it adopts a pivot in its network strategy – to smaller markets. Looking forward, the company is not ruling out talks with other manufacturers about its long-term fleet needs, reasoning that with Airbus’ strength among low cost airlines other airframers are ultimately going to act aggressively to secure new business.

Air Canada Part 2: Financial progress makes investment grade metrics more tangible

6-Oct-2016 10:32 PM

A decade ago it would have been unheard of for Air Canada to contemplate reaching an investment grade credit rating. The airline had emerged from bankruptcy protection, but was still struggling financially. It would teeter on the verge of another formal restructuring before setting out on a course to restructure its financial foundation – a process that has allowed the airline to improve its balance sheet and leverage.

Air Canada’s leverage targets for YE2018 will not meet the general proxy for an investment grade rating; however, its lower capital commitments and debt refinancing could create an opportunity for achieving that status beyond 2018.

Attaining an investment grade credit rating likely remains a longer term goal for Air Canada as its major financial goals in the short term remain paying down debt that is creeping up due to a fleet renewal, as well as funding growth to drive long-term shareholder value. More meaningful shareholder returns will likely occur once the company reaches what it deems as acceptable progress in debt management, and reaches a certain maturity level in growing its international network.

This is Part 2 in a two part series on Air Canada. Part 1 dealt with long haul LCC subsidiary, rouge.

Garuda Indonesia Part 4: revised fleet plan leads to new narrowbody and widebody orders

25-Jun-2016 10:00 AM

Garuda Indonesia is close to completing a new 10-year fleet plan outlining narrowbody and widebody growth. An overdue order for new generation widebody aircraft, along with a top-up order for 737 MAX narrowbodies, is expected by the end of 2016, potentially at the upcoming Farnborough Airshow.

The new fleet plan supports an ambitious plan to expand Garuda’s international network – both regionally and in the long haul sector. Garuda is also striving to strengthen its domestic position further with narrowbody growth.

According to CEO Arif Wibowo, the group's new overall strategy is: “To dominate the domestic market, expand regional where the opportunities are and subsidise long haul growth.” This is the fourth and final part of a comprehensive series of analysis reports published by CAPA on the Garuda Indonesia Group.

The US Big 3 work to preserve their unit cost performance as labour talks heat up

17-Jun-2016 8:08 PM

The paradox of margin expansion and unit revenue contraction will continue for most US airlines into 2Q2016 as those companies work to alleviate investor concern and set a course for a positive unit revenue trajectory. But maintaining favourable unit costs is key for the continued margin expansion forecast by the three large US airlines – American, Delta and United.

Although fuel prices have been rising, energy costs remain below historical levels, which is helping American, Delta and United to keep their unit costs in check. Excluding fuel, each airline has varying forecasts for 2016 driven by different inputs, including rising labour costs and profit-sharing.

American’s unit costs during the past year have been affected by labour contracts it reached with pilots and flight attendants in 2015. Delta and United will also likely need to weather labour cost increases as both companies are in the process of negotiating contracts with different employee groups. Many US airlines face uncertainty in their cost performance in the future as they work towards favourable contract terms that preserve their efforts to contain costs. And so the wheel turns.

ULCCs, hybrid airlines in the Americas. True LCCs start to look like a vanishing species

3-Jun-2016 3:31 PM

During the mid-2000s the term hybrid business model entered the North American aviation business vernacular as low cost airlines became more sophisticated, adding elements to their strategy outside the boundaries of the traditional low cost blueprint pioneered by Southwest Airlines. Fast forward to 2016, and the term hybrid is becoming outdated, as low cost airlines in North America have adopted many of the same product attributes as full service airlines, and as those airlines have blended in many low cost elements.

North American airlines can now be categorised into four business models – full service airlines; low cost, high value airlines; ultra-low cost airlines; and Southwest, which still aspires to the low cost paradigm but does not offer the product attributes of more upscale low cost airlines. jetBlue has pushed the boundaries of low cost product evolution with its successful Mint experiment, featuring a fully lie-flat business seat, but no other North American low cost airline has (yet) decided to follow suit. Canada's low cost model, WestJet, has hybridised, adding a regional fleet in Westjet Encore, expanding its competitive bandwidth against its main domestic opponent and going long haul on the Atlantic.

In the less mature Latin American aviation market, the low cost airline model is still evolutionary, with the exception of Mexico where three low cost airlines and one full service airline are competing to lure passengers from bus travel. Brazil and Colombia also have low cost airline representation, but the spread of the business model is generally slower in South America, partially due to challenges from the cumbersome regulations that the start-up companies face in bringing their visions to fruition.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.