Bombardier Inc. T.BBD.A

Potential revenue stream

[stockitnow]

I am not saying the following is going to happen, but there is a better chance of it happening now then before.  But alot is dependent on market condition.

With CRJ under Mitsubishi and now no direct competition between Mitsubishi and Bombardier.  Both dont have C series and Spacejet to compete against each other and EMB only one in regional market.  There is room and airlines preference to have another OEM for competition.

Mitsubishi has the services and after sales of CRJ but no new airplane.  Bombardier has the airplane but no appetite and regional market presence.

Global 8000 is ideal replacement for new regional jet.  Few tweaks like removal of self supporting equipment used for charter bizz jet and ultra long operations (reduces weight too), de rated engine (GE got this covered),  and new wing for short regional flights. This will make Global 8000 airframer and excellent RJ.  Minimum tooling and ramp up cost will be required plus both Mitsubishi and Bombardier can split cost.

Bombardier takes care of design and build, and Mitsubishi sales and marketing.  Aftermarket sales can be shared as thats where regular revenue will come from.

Bombardier took Challenger jet original jet and stretched it into CRJ series.  Global 8000 needs no stretch so R&D will be low.

Again this might not happen but potentially is there.  Embraer doesn't have money to bring any new airplane for RJ as they are tired with new turboprop design.  And they have pricing pressure form Airbus for E2 series, Bizz jet competition from Cessna and lower end Gulfstream and Bombardier.

If it does then there is another revenue stream.  This is would be 4 to 5 years out as current RJ have that many years to go before heavy replacement cycle kicks in.

[clubhouse19]

Your post struck a chord with me. I wonder how feasable it would be to convert the present global into a regioinal commercial jet with the added speed and design ? Just throwing this up there ..way to early to contemplate I would say.  Defence is the easiest track to take..

[BBDB859]

I was thinking of that too, not too long ago Stock. The Joint Venture with Mitsu would be ideal. It's just that the Bomber does not want the added monitary expense that would be associated to the manufacturing side, from the Commercial Aircraft side right now. 5 Years from now maybe.

[flamingogold]

The juciy margins and repetitive revenue is in after service. If BBD gets involved I would want them to get that business, not Mits. Otherwise, they are better to focus on high margin biz jets clients, military and their after sales centres.

[PabloLafortune]

How much savings can there be to change the wings and engines? Why not just convert the 8000 to commerical operations and lower the sales price such that the profit is the same as it would have been had you gone ahead and changed the wings and engines? If you're afraid of cannibalizing business jet sales and resale values, just subsidize the lease as long as the aircraft is used for commerical

[stockitnow]

You are wrong in all your assumptions.  Its all about the wings.  Global 75/8000 wings are designed for long range high altitude cruise in thin air.  RJ wings are designed for short haul hops. Compare Global 7500 fuselage length to CRJ and they are about same.  But wing span for CRJ is about 20 feet shorter.  Engines are also lower thrust on CRJ by alot.  CRJ

[HopefulJuan]

For them to release such good news as Q4 early tells me they have good news in store for the earnings call.

[Nordico]

I also think you should lay off the coke with this G8000 RJ idea. A big Global is way more expensive than a Challenger stretch; would be uneconomical and far too expensive for regional airlines vs. buying standard regional jets.

[stockitnow]

Before covid there were discussions that Mitsubishi might restart CRJ production with Bombardier building it for them. Like i said on my first post, this might not happen with Global jets.  But it was when Bombardier was building CRJ that the sp was flying very high.  They were the money maker not the bizz jet so imagine the margins on CRJ.

[BBDB859]

Stock sorry I didn't clarify that when I said that, I had the same thought as you, about Mitsu & the Bomber JV, when I first replied to u. But my thought went slightly in a diferent direction. I thought that. Since Bombardier had already monotized the sale of the CRJ to Mitsu, and Mitsu stopped working on their Spacejet design. Why not work with the Bomber's technology to push forward

[stockitnow]

All good no worries.  I think its atleast 5 years out for such a decision if any.  Airbus and Boeing are not in RJ only Embraer and Chinese not much of threat outside of China.

[PabloLafortune]

So stockit, if I understand correctly this would be more or less a 5500 on an 8000 fuselage at a lower price than an 8000? Would that not have biz jet potential as well? Personally, I don't see a problem of re- entering commercial space market so to speak if Mitsubishi is taking on all the business risk associated with dealing with the airliners. Basically Mitsubishi is the customer, it's

[stockitnow]

More similar to CRJ 700/900 but yes you can do CRJ5500 as well as a derivative. Once the wing and engines are changed you basically reduce the capability of the bizz jet and the cost comes down.  Mainly because of engine cost and on-board equipment that are used to make bizz jet self sufficient during ground handling and flying further.  Some fuel tanks, and associated structures and

[PabloLafortune]

I'm not going to reply you on the technical stuff stockit as this is totally out of my lane LOL and above my paygrade but I do believe there is a business opportunity for Bombardier here if they can fully leverage existing infrastructure and human capital under acceptable business terms (where Bombardier tended to lose their shirt in the past - taking deals that were money losing propositions

[Nordico]

Pablo can you lay off the coke please.