Now Unlock To All : The Airbus A100 (CRJ) - Insider Update Part 3
6:30 (10:30 UTC) - August 29, 2018 - by Sylvain Faust for Fliegerfaust
It has been a while since I wrote a comprehensive update about Bombardier, the Airbus A220, the Q400, CRJ...
Trying to organize all the info from multiple sources, I will be covering the Global, Q400, CRJ, Bombardier Transportation, Airbus, L-3 MAS, F-35, CF-18, Dassault, Boeing…
In Part 1 I mentioned the Plan B according to sources for Bombardier and its Global aircraft production after leaving Downsview. Did you know that Bombardier is planning for production of 9 aircraft per month?
In Part 2 I covered what the plan is for the Q400 at Bombardier.With who Bombardier is currently negotiating to sell the program and where the final assembly would be made.
Close to September 12-14 you can expect to see the A220/CSeries FTV3 MSN 50003 flying to its final destination at St-Hubert airport YHU/CYHU. More on why here.
Today: the CRJ and the Learjet.
According to what I was told, once more, in line with the divestiture of the CSeries, what used to be the "high-end" commercial aircraft product for Bombardier, exiting the Commercial Aircraft business is a very rational strategy. With the Q400 in negotiation for a new owner (see part 1) Bombardier is left with the CRJ looking for a new master.
After having sold the CRJ Bombardier would then be able to concentrate on businesses that make good profits, i.e. transportation, business aircraft, aerostructures and engineering services, specialized aircraft... Bombardier would also begin to make a profit selling A220 components to Airbus (wing, cockpit, fuselage, engineering/modifications…).
As for the Business Aircraft division, there's one aircraft program that should see a change soon. More on this lower. Back to the CRJ.
The New Airbus A100
Airbus would be acquiring for free the CRJ program in whole or in part according to what I was told. Really? Airbus commitments would be to further push the sales and including the CRJ in their product line-up renaming the CRJ as the A100.
The 3 CRJ currently being made by Bombardier would be renamed A100-700, A100-900 and A100-1000 replacing the CRJ-700, CRJ-900 and CRJ-1000. Do you believe this? Take it or leave it, that's what I was told. Leave your comments at the bottom or the Fliegerfaust Facebook page.
Airbus would move out its production from the current factory in Mirabel to make 100% of the space available to the A220 assembly.
The CRJ production would remain in Quebec for a certain minimum number of years, even though the Airbus factory in Mobile, Alabama is considered. Airbus would be building a small hangar next to the current Airbus A220 Mirabel factory to accommodate the CRJ assembly, I mean, the A100
What's in for Bombardier? First, it would mark the completion of the strategic plan of totally leaving the Commercial Aircraft business, CSeries gone, Q400 gone, CRJ gone.
Bombardier, as with the CSeries, would then also become a supplier like with the A220/CSeries but to a smaller extent. It would be closing its "Commercial Aircraft" division saving all its associated production, operational, sales and marketing expenses. Lean and Clean...
The wings of the CRJ are already made at the assembly plan. Bombardier is the maker of the aircraft cockpit at Ville St-Laurent/Montreal.
Airbus could also implement enhancements to the CRJ (then A100) by upgrading its engine providing better operating cost for its owners.
Stay tuned for more on this…
The End of the Learjet?
An executive decision has to be made. With Bombardier quasi non-existence of orders, it is time for action.
On January 15, 2015 Bombardier suspended the development of the Learjet 85 and also cut 1000 related jobs concentrating its money to the CSeries and Global 7000/8000 projects. The LJ-85 made of a composite structure did its maiden flight 9 months earlier, on April 9, 2014 from the Learjet home base in Wichita, Kansas.
It is a few months later that the management at Bombardier made it public that the company cancelled the Learjet 85 project with a US$ 1.2 billion write-down off the books of the company for a total project loss of US$ 2.6 billion. The Learjet 85 was supposed to enter into service in 2012.
As reported in THE GLOBE AND MAIL 2 years ago, August 16, 2018
"We think divestiture is an increasingly plausible option" for Learjet, Cowen and Co. analyst Cai von Rumohr said in a research note to clients this week. "Because Bombardier doesn't plan any new Lear models, Lear's revenues and profits will be in a long-term slide as the in-service population [of aircraft] declines, with the value of its business also eroding over time."
Learjet, which sells two similarly sized models known as the Learjet 70 and 75, has seen its market share decline from 60 per cent in 2015 to 33 per cent through this year, Mr. von Rumohr said. The two jets contribute less than $300-million (U.S.) to Bombardier sales and hold no opportunity for growth, he said.
With the very low Learjet sales, with no new buyer for the program, Bombardier, according to a source, would be preparing to shut down the Learjet completely while servicing the existing aircraft currently on the market. How much of a write down would it represent in the company books?
What would the Learjet facility in Wichita then be use for if so? Remember what I wrote in Part 1?
I must say, it is "Moving" at Bombardier Transportation… but that's for Part 4
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Sylvain Faust, Fliegerfaust
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