Bombardier $5B, $6B or $7B Co?One thing to keep in mind, is that if EM decides to maintain production (esp 7500) at a higher level and allows the backlog to be similar to its peers (rather than higher), you get a lot more EBITDA. That's because Bombardier has a very high fixed cost. The revenue above $1B on a quarterly basis is high % (30%?) pure contribution to EBIT. Well what matters when you borrow is Debt to EBITDA. You either lower the denominator or increase the numerator. If you can do both, you can extricate yourself from the vicious cycle of high debt, low EBIT and high interest costs to one of low debt, high ebit and low interest costs.
As John Maynard Keynes said, in the long run we're all dead.