RE:RE:bbd futureHave a great 2021 all. Better luck at the tables esp. with your BBD chips.
Lots of good ideas from Bomb2020. I feel that when Martel said they had too much capacity he was alluding to reducing their "fixed" costs - they seem to breakeven EBIT wise at grosso modo $900M per quarter. @ $5.5B annual sales, a 5% improvement or $275M would represent 7.6% of break-even (internal and external costs).//
I doubt the industry has much pricing power atm. Happy to maintain the backlog.//
For sure they should get back into commercial IF they can HIGHLY leverage the business jet development, service network and overall infrastructure... This was Bombardier's profit model for years.//
It is indeed critical to bring the debt and interest cost down asap because that cashflow gives confidence to markets that you can bring the debt down and fund new products. Esp concerned about Airbus getting into biz jet...as Andy Grove one of the greatest Managers of the 20th century said, there's the quick and the dead (get the debt and interest down) and only the paranoid survive (be leery of new business jet competitors).//
I'm still curious to see what they end up getting for BT. Originally AB said they would get up to USD$4.2B from BT (incl. the shares). Which at the time translated to Euro $3.88B. Exchange is 1.215 now so incl. the 350M Euro Q2 capital injection, that's USD$5.14B (incl shares). Sure there was legacy in 2020 but to a large extent, that was built into the original deal. We'll find out soon enough.//
And of course, I still feel that they should own as many shares of Alstom post closing as they can.