If Bombardier Sells Its Business Jet Unit, Here’s Who Might Buy It
if anything were to happen, it would be the aviation unit that would be broken up rather than transportation
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January 20, 2020 - by Brian Foley for forbes.com
Bombardier had a bad day at the office Thursday, with its stock plummeting 32% after the company warned that its second-quarter earnings would be substantially worse than forecast and said that it was reassessing its partnership with Airbus on the A220 and was pursuing alternatives to pay down debt.
While exactly how the latter might be done was never revealed, one possibility would be to take an existing page out of their old playbook, a page which by now is worn and tattered from repeated use, and sell yet another business unit.
By now all that's really left are just two divisions - business aviation and transportation.
Bombardier hinted at exiting its commercial airliner business, which suggests that if anything were to happen, it would be the aviation unit that would be broken up rather than transportation.
Once the commercial Airbus A220 program is gone, all that would be remaining in the aviation business would be the business jet division. While that business could still conceivably stand on its own, Bombardier could always decide to cut ties with that too.
It wouldn't be a seller's market for Bombardier if it decided to unload its business jet division. There have been only around 700 worldwide business jet deliveries each year for the past decade.
The market hasn't been growing and is hampered by having 40 models of business jets competing for those finite sales...