Flight International – 11 June 2019

fiightglobal.com 11-17 June 2019 | Flight International | 45

PARIS

Bombardier

Whatever the strategic options, business aviation “is where we are putting our chips”

Ronald Kabuubi/AP/Shutterstock

Guillaume Horcajuelo/EPA-EFE/Shutterstock

Salvatore Di Nolfi/EPA-EFE/Shutterstock

branding the CSeries as the A220.
With its flagship now in Airbus’s hands,
Bombardier used Farnborough to shift atten-
tion back to the CRJ, a product that had argua-
bly languished, with few updates, as it devel-
oped the CSeries. At the show, Bombardier
rolled out an updated CRJ cabin called At-
mosphere, with upgraded lighting, larger toi-
lets, and overhead bins capable of accommo-
dating large carry-on bags. But despite a ritzy
Atmosphere unveiling, Bombardier an-
nounced only one aircraft deal at the show:

the sale of four CRJ900s to Uganda Airlines.

The CSeries deal might have been a one-off

sale, but instead proved a first step towards a

broad divestiture by Bombardier of its com-

mercial aircraft assets. In November last year

Bombardier announced it was selling the

Dash 8 programme, including the venerable

Q400 and assets related to other variants of

the turboprop line, to Longview Aviation Cap-

ital, parent of airframer Viking Air, for $300

million. After the closure of that deal, only the

CRJ remained in the commercial portfolio.

COST-CUTTING

But Bellemare conceded last year that

Bombardier loses money each time it sells a

CRJ, vowing to embark on a cost-cutting initi-

ative while exploring more radical steps. “We

will also continue to actively participate in

the regional aircraft market,” Bellemare said

at the time. “In terms of exploring strategic

options it is something that is always on the

table.”

Several times since, when asked about the

CRJ, Bellemare peppered his answers with

that phrase – “strategic options”.

Bombardier’s shift away from commercial

aviation continued this year. In May it an-

nounced a combination of its commercial and

business aircraft units into a single division

called Bombardier Aviation. “We want to

focus on business aircraft going forward,” Bel-

lemare told investors. “That’s where we are

putting our chips.”

This raised the question, what will happen

to the CRJ? Speaking ahead of the 5 June dis-

closure, Schonland envisaged several possi-

bilities, including Bombardier bringing down

the shutters on the CRJ line after filling exist-

ing orders. But airlines have a stake in the

CRJ’s future too, he noted. The programme’s

demise would leave Embraer with a near mo-

nopoly over regional jet sales, at least until

Mitsubishi Aircraft begins delivering its MRJ.

To avoid that scenario, US airlines, which op-

erate the vast majority of the global CRJ fleet,

might step in with CRJ orders to keep compe-

tition alive.

Mitsubishi’s interest might have been as

much in the customer base as the potential of

manufacturing new aircraft. The CRJ pro-

gramme’s value lies largely in servicing and

supporting the worldwide fleet, which Bom-

bardier has accomplished through an envia-

ble global services network, Schonland notes.

And which companies need global sup-

port? Newer entrants, noted Schonland, like

Mitsubishi Aircraft, perhaps even China’s

Comac – maker of the ARJ21 and C919.

“If you are an OEM trying to enter this busi-

ness, what you [want] is a global support net-

work, ready to go,” Schonland said.

This month's revelation seems to have an-

swered that question. ■

Bombardier’s only deal at

Farnborough 2018 was with

Uganda Airlines for four CRJ900s

CSeries was rebranded the

A220 after programme’s

acquisition by Airbus