The problems mount at Bombardier. Every promising piece of news – entry into flight testing of the CS300 in February – is outweighed by the bad: rumours of a further delay to CS100 first delivery, and now an admission by third-largest customer, Ilyushin Finance, that it is re-evaluating its commitment to the CSeries.
The company – controlled still by the family that transformed it from snowmobile maker to global aerospace and rail transportation combine – is at least not in denial, having brought in industry heavyweight Alain Bellemare to replace a Beaudoin, and with a clear mandate to take firm and decisive action.
The former UTC executive’s broom has begun to sweep, with the latest high-profile exit that of commercial aircraft head Mike Arcamone. Bellemare is determined to bring in new talent with fresh perspectives after a five-year spell in which Bombardier has failed to gain market traction with its flagship programme.
Ilyushin Finance chief Alexander Rubtsov could, of course, be taking advantage of Bombardier’s stricken position to improve his bargaining leverage, given the worsening economic circumstances in Russia where he will be hoping to place most of his aircraft.
However, the Canadian firm can ill afford to lose one of its four big customers. Macquarrie, Republic Airways, Ilyushin Finance and Lufthansa account for more than half of total CSeries orders. It seems unlikely that – even with a debut at June’s Paris air show – other blue-chip operators are waiting in the wings.
For Bombardier to restore confidence, it must do three things. Above all, it has to keep flight testing on track. Second, it should urgently agree terms with a launch customer. It takes months to prepare an airline to introduce a new aircraft into service and Bombardier is losing valuable time. Third, it must find a way to sell the CSeries to new buyers. If Bombardier’s four largest customers are becoming restless, it will not be enough to simply convert options to keep production on pace.
Bellemare’s job remains the toughest in aerospace, but the markets have not abandoned Bombardier yet. Moody’s has just raised its liquidity rating, based on the fact that, though up to its neck in debt, Bombardier has at least got cash to get the CSeries to certification.
That done, it is simply a matter of convincing airlines that this is an aircraft that can do a job for them, and ensuring a smooth entry into service. While that would not solve all Bombardier’s woes, making a success of the CSeries would at least allow Bellemare and his team to focus on the bigger picture.
Source: Flight International
