RE:RE:No CS500 for Bombardier? Read between the lines.....PinotBlanc - with all due respect to you and your comment about me wanting a quick trade, you completely miss my point. Look, Bombardier is in my blood. I've owned shares since the late 1980s. You know what happened in the 1990s and I have done very well. Got out of 2/3 of my position at $18, on the way down. Those shares had a cost of about $3.00 or less. I want Bombardier to grow and thrive for ever and I have not sold any shares since 2011 at $7.16 (it went to just over $8 in 2011).
My point is that without some sort of serious commitment and funding from the fed government, how do you expect Bombardier to thrive while competing with Boeing and Airbus who are each highly subsidised?
Bombardier should at least monatise a portion of that wing and patents, they are important assets for Bombardier. Focus on the CS100 and CS300 market and then get a royalty from Boeing on each CS500 +. sold.
Don't forget that Boeing does have a plan for a new airplane - they are talking about it with all this noise from Bombardier. My concern is that by the time Bombardier would be financially sound to fund and build the CS500, say 2020, Boeing could well be close to a new airplane to complete with the CS500. Then there is Airbus also. Bombardier does not have to build all sizes of airplanes.
How can Bombardier compete with governments with deep pockets and who want to support their own aerospace industry. At least the province of Quebec stood up without too much fuss. We love Bombardier! And despite Trudean being a Montreal guy, he's got his hands full with Alberta, Baie Street B.S., and many Canadians, many of whom just see it as corporate welfare.
Of course I want Bombardier to win on all fronts but we also need to be realistic. I think that Bombardier now has leverage and options and must be strategic in its growth plan. If you can sell airplanes with 20% + margins (Bizjets), why sweat building the larger airplanes?