Suck it Boeing

[ICEMAN!]

Score one for the good guys

http://www.cbc.ca/beta/news/business/bombardier-boeing-tariffs-1.4505114

[sledderj]

 

Didn't Bombardier sell the C Series to Airbus for basically nothing and Airbus is moving some of the production to Alabama?  All after taking bailout cash from the Canadian Government?  

Sounds like a big win.....  

 

 

 

[Frostynuts]

It,s certainly not a win for Canada. These Queerbec motherfukkers have been sucking on the federal governments tit for the last 20 fukking years, which comes directly from every taxpayer in Canada. IF they had to make it own their own, they would of went belly-up long, long, ago.

I,ve never seen such an arrogant bunch. They even had the nerve to give many managers bonuses, right after they got the last federal handout.

Nothing like taking the cash, and kicking every taxpayer in the nuts, as soon as they cashed the cheque. And shortly they will be back for another hand-out. Just like welfare cases, once you got the system figured out, the cycle never stops. LOL

[ArcticCrusher]

How many Junior Achievers got it wrong?

 

https://www.theglobeandmail.com/investing/markets/stocks/BBD-B-T/

[ICEMAN!]

6 hours ago, sledderj said:

 

Didn't Bombardier sell the C Series to Airbus for basically nothing and Airbus is moving some of the production to Alabama?  All after taking bailout cash from the Canadian Government?  

Sounds like a big win.....  

 

 

 

It is a big win for everyone.  Bombardier has landed several big orders for the C Series since the deal with Airbus.  They also get the backing and expertise of a well established aerospace company.  It’s a good plane and in the end, 50% of something is better than 100% of nothing.

 

[Anler]

No wonder skidoo makes the best snowmobiles. 

[ArcticCrusher]

7 hours ago, ICEMAN! said:

It is a big win for everyone.  Bombardier has landed several big orders for the C Series since the deal with Airbus.  They also get the backing and expertise of a well established aerospace company.  It’s a good plane and in the end, 50% of something is better than 100% of nothing.

 

I agree.

[jammin]

3 hours ago, Arctic Cat Destroyer said:

No wonder skidoo makes the best snowmobiles. 

Says a Polaris owner   

 

[Carlos Danger]

Boeing is buying Embrer air out of Brazil so the future is still bleak for the Bombardier C series as it will compete with current and future versions of the most popular commercial plane ever made the 737 and it will compete with the new offerings from Embrer which is basically the same.

[sledderj]

6 hours ago, ArcticCrusher said:

I agree.

 

I'm curious how the math works myself.  Bombi has sunk 6 billion into the C-Series.  They basically gave a controlling half to Airbus and Airbus has the option to buy the remainder in the next 7 years.  So they and the QC government now own a 3 billion dollar asset (maybe) and half the profits on any aircraft sold.  They spent 6 billion, so they need the profits to cover the costs plus make a profit.  They estimate the total market to be 6000 jets in the next 20 years, of which they probably can realistically get 1/3? of maybe?  So 2000 jets at 30 million each is only 6 billion in total revenue.  That only covers what they spent so far.  For that revenue, they still have the cost of actually building 2000 airplanes and expected profits.  

Even if Airbus exercises their option to purchase the outstanding half in a few years, the profits they are going to make on these first few hundred planes won't be enough to come close to paying the money invested so far.  Seems like Bombi just bought themselves some time to me.     I hope the repayment terms on the Canadian Government loan are quick.  

[ICEMAN!]

51 minutes ago, sledderj said:

 

I'm curious how the math works myself.  Bombi has sunk 6 billion into the C-Series.  They basically gave a controlling half to Airbus and Airbus has the option to buy the remainder in the next 7 years.  So they and the QC government now own a 3 billion dollar asset (maybe) and half the profits on any aircraft sold.  They spent 6 billion, so they need the profits to cover the costs plus make a profit.  They estimate the total market to be 6000 jets in the next 20 years, of which they probably can realistically get 1/3? of maybe?  So 2000 jets at 30 million each is only 6 billion in total revenue.  That only covers what they spent so far.  For that revenue, they still have the cost of actually building 2000 airplanes and expected profits.  

Even if Airbus exercises their option to purchase the outstanding half in a few years, the profits they are going to make on these first few hundred planes won't be enough to come close to paying the money invested so far.  Seems like Bombi just bought themselves some time to me.     I hope the repayment terms on the Canadian Government loan are quick.  

Don’t forget about the thousands of high paying jobs and spinoff industries, parts, service etc etc.  It all adds up to a ton of money and is good for everyone.  An aerospace industry doesn’t survive without government help.