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Jul. 05, 2019 11:49AM EST

Is Bombardier Inc. (TSE:BBD.B) Using Too Much Debt?

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July 5, 2019 - by simplywall.st

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that 'Volatility is far from synonymous with risk.' So it seems the smart money knows that debt – which is usually involved in bankruptcies – is a very important factor, when you assess how risky a company is. As with many other companies. Bombardier Inc. (TSE:BBD.B) makes use of debt. But is this debt a concern to shareholders?

Why Does Debt Bring Risk?

Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers...

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Take off of the first A350-900 for Lufthansa MSN074

A Tectonic Shift Towards Large Narrowbody : Airbus / Boeing

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December 19, 2019 - by Vincent Valery for leehamnews.com

There are now more firm orders for the Airbus A321neo than all the latest generation widebody programs combined: Airbus A330neo and A350, Boeing 787 and 777X. The largest Airbus narrowbody makes up 44% of all A320neo family orders, compared to 22% for the A320ceo family.

After peaking in 2015, twin-aisle aircraft now represent a smaller portion of all deliveries. Boeing will lower the future Dreamliner production rate from 14 to 12 per month, while Airbus did not proceed with an A350 rate hike.

Being at a later point in the cycle, economic slowdown, and trade tensions explain part of the lower demand for widebody aircraft. However, there are good reasons to believe something more fundamental is at play.

LNA wrote a few months ago that Trans-Atlantic market fragmentation is...

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General Aviation News - ›

Boeing

Giphy

Stop Hitting The Snooze Button, Boeing

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December 9 , 2019 - by Scott Hamilton for leehamnews.com

I know Boeing is preoccupied right now. But it has to get off the pot and decide to proceed with a new airplane.

We believe the New Midmarket Airplane is still required. But Boeing salesmen have also floated the concept of a new, single-aisle airplane to key players in the market. Either way, Boeing has to do something.

At least, that's how we see it at Leeham Co.

The order last week by United Airlines for 50 Airbus A321XLRs should be a wake up call.

It's not the only one Boeing has had.

Wake Up calls

Boeing was riding high from 2015 to October 29, 2018, when the Lion Air crash happened. Even then, the accident—involving an airline with such a spotty safety record that the European Union banned it from flying to Europe—was considered a one-off...

"Boeing has to do something"

A supplier to Boeing (and to Airbus) told me last week, "Boeing has to do something." It needs to proceed with a new airplane...

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Boeing Stock: Is It A Buy Right Now? This Is What You Need To ... ›

Who is visiting Fliegerfaust now... plus all visitors since December 25, 2018 14:56 - 19:56 UTC

Airbus

Bombardier is pushing forward with major multi-million pound plans which could extend its aircraft facility in Belfast by around 60%, Ulster Business can reveal.

Bombardier pushing forward with major Belfast factory extension

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December 8, 2019 - by John Mulgrew for ulsterbusiness.com

Full plans have now been submitted by the aerospace giant could see its Airport Road West site grow by around 31,000 sq m.

The wing production and assembly facility houses Bombardier's resin-infused composite aircraft wing manufacturing process for the Airbus A220 aircraft programme.

Bombardier employs around 3,600 people in Northern Ireland, including 1,000 working on the former CSeries jets, which have been rebranded as the A220, after Airbus took on a majority stake in the series.

The complete wings and fuselage components for the jet are made within the Canadian aerospace giant's Belfast operation, which is being sold off to...

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Breaking UK news and exclusives | The Sun ›

Boeing

The FAA has proposed a fine of $3.9 million on Boeing for this manufacturing defect Affecting 737 MAX and NG

Affecting over 300 Boeing 737 NG and MAX

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December 8, 2019 - by Dominic Gates for seattletimes.com

The Federal Aviation Administration (FAA) on Sunday issued a statement alerting airlines and international aviation regulators that certain wing parts on more than 300 Boeing 737s may have been improperly manufactured and must be replaced within 10 days.

Both older model 737 NGs and new 737 MAXs are affected and there appears to be no connection with the recent fatal MAX crashes in Indonesia and Ethiopia.

The FAA said the parts in question are the slat track assemblies, used to guide the movable control surfaces on the leading edge of an airplane's wings that deploy during takeoff and landing.

Manufactured by a Boeing sub-tier supplier, a batch of up to 148 parts with specific lot numbers are affected, the FAA said.

Because the parts have been...

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Boeing 737 Max: Is it safe? Why it's still grounded by FAA after crash ›

Airbus

Airbus and the European Union have not fully cured illegal subsidies on the A350... A380

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December 7, 2019 - by Scott Hamilton for leehamnews.com

The Trump Administration Tuesday threatened to increase the tariffs on European goods after a World Trade Organization (WTO) compliance panel concluded Airbus and the European Union have not fully cured illegal subsidies on the A350 and some residual "harm" to Boeing remains as the A380 program winds down.

The EU and Airbus criticized the conclusions as faulty.

The EU is expected to appeal by next Wednesday.

The Administration already imposed a 10% tax on the A320 family, the A330neo and A350 imported into the US.

So far, the A320 family assembled at Airbus' Mobile (AL) plant are exempt.

US airlines and lessors whose lessees are US carriers are required to pay the tax. Airbus and its customers are working the problem behind the scenes.

Summary

The EU awaits a WTO arbitration decision next spring and is prepared to retaliate with taxes on Boeing airplanes.
Airbus believes it will be in a stronger position than Boeing once the WTO acts.
US customers are liable for tax.

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What Trump's tariffs have cost the U.S. economy | PBS NewsHour ›

Airbus

The real reason Airbus is retiring its A380 superjumbo jet

Evolving technology and terrible timing stopped the Airbus A380 from ever really taking off

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by Sophia Epstein for wired.co.uk

The Airbus A380 is the world's biggest passenger jet plane – and the plane many might imagine when thinking of splurging on a first-class seat, getting a free business class flight with their company or even relaxing more than in many other planes in economy – the double-decker plane offers more comfort and stability than its rivals.

Sometimes this goes to the extreme. Private flat-bed suites, an up-in-the-air lounge and cocktail bar, personal mini-bar at each seat – Emirates even built shower spas on board of its fleet of the double-decker planes.

"We've developed the most passenger preferred aircraft in the world," Airbus head of business analysis and market forecast Bob Lange says.

So why has Airbus decided to kill it?

The main reason the company will halt production of A380 after 12 years, from 2021, is the low number of planes sold. "In the end, you have to face facts, and we...

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Bombardier Transportation

Bombardier trains assembly line

Bombardier To Phase Out Another 2500 Jobs

Cut 5000 jobs worldwide by 2021

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December 7, 2019 - by Dieter Fockenbrock for handelsblatt.com

One of the major suppliers of Deutsche Bahn, the locomotive engineer Bombardier, is apparently again facing a profound change.

According to information from business circles up to 2500 employees of the manufacturer of rail vehicles could be affected. The company did not want to comment on request.

Bombardier currently employs 8500 people in its German plants.

For Bombardier it would be the third restructuring plan within this decade. In 2016, the efficiency enhancement program removed a large proportion of jobs in Germany .

Of the 5,500 jobs to be embezzled worldwide, 2,200 were located in factories located mostly in eastern Germany.

These jobs should be phased out by 2020, according to a company agreement.

Just over a year ago, the corporate management stepped down. In the fall of 2018, Bombardier Transportation announced it would cut 5000 jobs worldwide by 2021.

There was...

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Boeing

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Boeing 737 MAX

FAA takes first steps for re-certification of the Boeing 737 MAX

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December 7, 2019 - by Scott Hamilton for leehamnews.com

The FAA issued a draft of the updated Master Minimum Equipment List (MMEL) for the Boeing 737 MAX 8 and 9 on its website yesterday. It's there to be commented on by anyone who has input to its content within 30 days.

This step is the first external sign the re-certification of the 737 MAX has begun.

Master Minimum Equipment List, MMEL

A Master Minimum Equipment List, MMEL, is the reference for the pilots if the aircraft can fly on when a fault has appeared on the aircraft. A modern airliner has many systems with redundancy and several other less important part systems that are not needed if the flight crew adapts the flying on the next leg so they can return to a home base from an outstation for example.

A good example of how this works is an item that changed between the first revision of the MMEL and the updated one,...

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Newsroom - An Update on the Boeing 737 MAX - American Airlines ... ›

Bombardier Aerospace

CRJ-1000 made by Bombardier now acquired by Mitsubishi

Garuda Indonesia to phase out its Bombardier CRJ1000s

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December 6, 2019 - by airlinerwatch.com

Jakarta, Indonesia - Indonesia's national airline operator Garuda Indonesia is looking for potential buyers for the six Bombardier CRJ1000ERs jets owned by the airline.

Garuda Indonesia started operating Bombardier CRJ1000s in 2012 and currently has 18 copies in its fleet. 12 aircraft are leased from the Nordic Aviation Capital.

Leased planes will be returned to the lessor. The CRJ1000s of the Asian operator. are 6.2 years old on average.

Garuda Indonesia primarily uses its CRJ1000s for...

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Original notes and articles

My name is Normand Hamel. After a 35 year career in aviation I retired in 2009 to better concentrate on my favourite activities: reading and writing. If you wonder what Run-up Pad means it refers to this special section of a run-up area on an airport that can be heated up in cold temperatures to prevent an aircraft from slipping forward when power is applied to test the engines. It also refers symbolically to the yellow pad I am using to write these articles for which I intend to bring our readers to contribution to test my ideas, like one would test an engine to make sure it works properly.

    
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It's Free! Subscribe To Fliegerfaust Newsletter

Is Bombardier Inc. (TSE:BBD.B) Using Too Much Debt?

Why Does Debt Bring Risk?

Wake Up calls

"Boeing has to do something"

Affecting over 300 Boeing 737 NG and MAX

Summary

Evolving technology and terrible timing stopped the Airbus A380 from ever really taking off

Cut 5000 jobs worldwide by 2021

Master Minimum Equipment List, MMEL

Most Read

Most Recent Faust's Notes

VIDEOS - Most Recent

PICTURES - Most Recent

Most Read