![]() ![]() ![]() To that end, Martel, 53, has shored up Bombardier’s balance sheet, paying down debt with proceeds from the sale of its massive transportation division, in a deal that closed early this year. Shuttering Learjet, which helped Bombardier become one of the world’s major players in business aviation, is a step meant to show Bombardier’s genuine commitment to just one market - high-margin business aircraft.Īs to viability, an unspoken factor in Bombardier’s upside potential is the increase in demand for its products if it can remove the fear among buyers that Bombardier someday won’t be around to stand behind its planes. It must work hard to prove that it can be a sustainably viable enterprise. And it is facing competition from several new entrants in the light-aircraft segment.Īfter years of failed promises and near-death experiences, Bombardier is a “show me” company. That exit from the small, or “light-aircraft,” segment of the business-jet market leaves Bombardier with just two families of planes - its mid-sized Challenger series, and its large, long-range Global aircraft program.īut for Martel, Learjet is not an ideal fit with the new Bombardier. To be even more certain of that, turnaround CEO Éric Martel, an electrical engineering graduate from Laval University who took office in April 2020, announced in February that Bombardier will discontinue production of the firm’s iconic Learjet series this year. for global market-share leadership in medium- and large-sized business planes combined, at about 40 per cent each in 2020.Īnd after a gruelling half-decade of shedding several albatrosses, a focused Bombardier now caters exclusively to a select group of rich buyers. defence contractor General Dynamics Corp. And it is tied with the Gulfstream division of U.S. That’s down just 3 per cent from the same period a year earlier, at the start of the pandemic.īombardier is the market leader in mid-sized business aircraft. Bombardier has strengthened its chronically worrisome balance sheet.Īnd at the end of its latest fiscal quarter, March 31, 2021, Bombardier had a healthy order backlog of $10.4 billion (U.S.). The firm’s financial performance is improving, despite pandemic challenges that have hit aviation especially hard. The new Bombardier is a pure play in business aircraft, a sector that held up well during the pandemic and is expected to post strong post-pandemic growth. Without attracting much notice, shares in the long-struggling transportation firm have soared in value more than fivefold in the past year. ![]()
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