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Bombardier Inc. T.BBD.A

Alternate Symbol(s):  BDRXF | BDRAF | BDRBF | T.BBD.B | T.BBD.PR.B | T.BBD.PR.C | T.BBD.PR.D | BDRPF | BOMBF

Bombardier Inc. is a Canada-based manufacturer of business aircraft with a global network of service centers. The Company is focused on designing, manufacturing and servicing business jets. The Company has a worldwide fleet of more than 5,000 aircraft in service with a variety of multinational corporations, charter and fractional ownership providers, governments and private individuals. It operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. Its robust customer support network services the Learjet, Challenger and Global families of aircraft, and includes facilities in strategic locations in the United States and Canada, as well as in the United Kingdom, Germany, France, Switzerland, Austria, the United Arab Emirates, Singapore, China and Australia. The Company's jets include Challenger 350, Challenger 3500, Challenger 650, Global 5500, Global 6500, Global 7500 and Global 8000.


TSX:BBD.A - Post by User

Bullboard Posts
Comment by jammerhon Mar 22, 2010 11:59am
207 Views
Post# 16909446

RE: aircraft build time? - Timothy

RE: aircraft build time? - TimothyHi Timothy, you ask an interesting question. Here's my thoughts:

"Airlines have pushed out orders of new planes for economic reasons and may be getting squeezed by aging fleets that require replacement. Regardless of who 'wins' the order, these aircraft are not sitting on a shelf for them to just pick one and have it delivered tomorrow."

There's no "may be" about it. Airlines are looking at aging fleets which now need replacing. This demand builds and really doesn't go away because they're delaying buying. That's demand that is beginning to resurface as the overall economy recovers and some of the more successful airlines (ie with more resources in terms of financial strength), begin to place their orders.

They have great incentive to do so not only because new aircraft are more fuel efficient and less much expensive to operate, but also because current interest rates are exceptionally low. Interest rates are expected to begin rising eventually, and airlines which postpone ordering new aircraft will likely pay higher financing costs. It will also take them longer to benefit from the new lighter, stronger airframes and aerodynamic changes which should prove to be a strong advantage.

" The C series is in some state of production presently, and assembly efficiency may be less, but what is the time frame with out a back log calculated in, for an order placed to actually build that aircraft once they start to assemble it ?"

It isn't quite accurate to suggest C Series is in a state of "production" yet. It might be more accurate to say its in a state of development. Completely new aircraft programs, which are commonly referred to as "clean sheet designs" like this usually require many years of research and development. C Series is expected to go into production at the end of 2013.

I don't recall any estimates regarding just how long it will take to produce a single aircraft once production begins. Bombardier has made good progress cutting waste and improving productivity of its plants by moving to lean production techniques.  Rates of production generally vary depending on how much demand a manufacturer has for an aircraft, and how much demand it expects - based on the state of the overall economy, and the projections  for that particular model.

Bullboard Posts