BOMBARDIER is Getting AGGRESSIVE!!!
Click Like to Follow Fliegerfaust Facebook page to get the News ASAP / Share to share this post now.
11:59am November 22, 2015 - Montreal, Quebec, Canada
After I've told you on November 16 that Bombardier and the Caisse were in their final negotiation stretch, here's what I have to say about Bombardier and the Government of Canada in Ottawa. (http://www.fliegerfaust.com/bombardier-and-la-cais...)
Many analyst I've been speaking with are wondering WHY is Bellemare still asking support from Ottawa, how would the government of Canada be helping Bombardier? In keeping its entire current workforce in Canada? Some analysts fear if Bellemare is in fact saying he needs more money for the CSeries.
Here's my opinion. Bellemare said it; Bombardier has plenty of cash for CSeries (meaning CS100 and CS300) and to complete all its other "current" development projects, i.e. Global 7000 & 8000. The new Challenger is done and certified!
But… Why Ottawa? Why mentioning this during the conference call? Remember, Bellemare is still, and always will be, in a negotiating standpoint trying to get the best for his company, always did, always will…
There's expansion coming, expanding does not always mean "more" factories… it could also mean moving them elsewhere on the planet where cost are lower, closer to the intended main market of tomorrow, where huge orders and other government could help a lot. Thinking fast, the Q400 is too expensive to produce presently for Bombardier. How do you correct this? You see…
I think Ottawa might show up helping keeping jobs in Canada, the 5000 related to the Q400 in Downview for example. Ireland is well open to produce more parts for the CSeries. (http://flybyni.com/2015/11/22/bombardier-workforce-in-belfast-could-play-bigger-role-in-cseries/) There must be available space in Mexico (no Learjet 85 for the moment), basically the options are multiple.
Interesting to read: " Boeing's two leading unions, the IAM District 751 and SPEEA, are girding for a second try in the Washington State Legislature to retroactivity tie job retention to $8.7bn in tax breaks given by the state in 2013 in exchange for the 777X final assembly line and the airplane's wing production factory being located in Everett (WA)."
Ok, but "How" would Ottawa do it. I would say, and hope, that corporate structure changes are now done at Bombardier. If Ottawa comes out with some form of aid it would be in a newly created Aerospace funding program attach to keeping and creating jobs in Canada. This industry is "key" to Canada and Bombardier is the driver, the backbone, can't be without.
Basically, when we know how would Ottawa offers its help, the confirmation that of no more assets sales, the analyst will be able to get a clear view and calculate their short term company value.
After all this said… Bellemare is executing on each point of his action list.
What is next? AGGRESSIVE SALES!!!!!
I'm hearing that since CSeries is now certified pending Transport Canada "ruber stamp" in a few weeks, that Bombardier is Cash Full, clients are in line… This is what is NEXT on Bellemare's action list if you are asking me. Stay Tuned!