RE:RE:RE:China, no deal, again Politics, BBD=PoliticsYes government block the deal but there was no protest and no interest from the Chinese. AB knew that and so did bombardier. You cant just use Chinese as buyer to prop a price up when they are not interested. AND CDPQ is in it to make money for itself. Wouldn't you want to see high retuens if you were vested in CDPQ? Deal with AB gave bombardier chance to stay in and recuperate its cost. Bombardier wasn't able to stay in the partnership because they didn't have money to invest. AB gave $1 and few hundred million to eventually buy out the program. They could have cared less about c series either and walk away. Now they are stuck with 2 assembly line and not enough orders. AB could have happily sold a319neo now they have an orphan aircraft that has no familiarity with any AB product. It defeats the purpose of common parts, training, maintenance etc for them. But regardless they join forces with bombardier. Yeah yeah yeah they can stretch the a220 but it will cost them more to integrate it into European assembly line. And still deal with parts and training dissimilarities. It will cost AB more to make a220 work but for them having a220 will cost boeing 100x more. Again all business move nothing political. Bombardier debt is coming from c series program. Even with learjet right off bombardier without debt from c series would be on solid ground. Lack of funding caused q400, and crj to loose market advantage and rail divsion took short cuts and are now paying for it deerly. Bombardier bet the company on c series and they lost. Now they are picking up pieces to make it functional again. All of this is business decision nothing political.
joeman wrote: You just said it yourself, The government blocked the CSeries deal with the Chinese. They would not have tried to make a deal if it wasn't better than the 1$ airbus fiasco. Meanwhile CDPQ committing usury, what is worse, greedy CEO or greedy CDPQ, innept govt and a regulatory that prevents making lucrative business deals?
stockitnow wrote: 1st of all the CEO is not in prison. She is under house arrest in her luxurious mention in Vancouver. 2nd of all the government stopped bombardier from selling to the Chinese. Bombardier didn't have a choice. At first i too was puzzled but selling to Chinese would have caused thousands of jobs lost as Chinese would have transferred every job to china. The c series would be build in china with Chinese suppliers. Quebec aerospace industry would have taken a major blow. 2nd the Chinese while showed initial interest never protested or care to come with better bid. From their prospective they have comac c919 and while c series is advanced most of the fuel savings comes from the engines. So Chinese realized very quickly that c series is not worth it for them. In the future they will have their own home build aircraft with western gtf. Chinese got all the technology they needed from the AB FAL so they dont need c series. Its very easy to think Chinese will come in with big money and buy whatever they want. But they are not stupid, they only buy what benefits them. Its not politics its business.
joeman wrote: China, USA and Canada are in the middle of a political battle revolving around Hawei and the chinese CEO of Hawei that is in prison and the two political prisoners in China directly related. Until this is resolved, no major deals with China will be made. This is a national security issue with the 5 eyes, (5 i's) , USA, Canada, Australia, Britain and New Zealand. The Hawei 5g issues are a sticking point, none of the 5 i's will break solidarity , and do not expect China to make friendly deals between now and when this ever gets resolved (if ever).
This more than anything is probably why Bombardier was not able to up the ante higher for the BT deal or the Airbus /CSeries deal. CSeries would have gotten way more money from China than these double crossers from AirBus or the others at Boeing.