Friday, September 29, 2017

Will Boeing and Bombardier Ultimately Fly Together?

Boeing's case against Bombardier in the U.S. market for higher tariff rates has created ripples not only in North America but also in Europe, specifically in U.K.

CS300 Air Baltic

The aircraft at the center of the conflict is the all new design 110 and 130 seat CSeries that has proven its good economy with its composite wings and new Aluminum alloy fuselage. A lot of its economic performance comes from its 2 Pratt and Whitney GTF Geared Turbo Fan engines.
CS100 Swiss

Boeing has no airliner at the envelope of the CSeries after it discontinued the ex-McDonnell Donald MD-95 that it rebadged as Boeing 717. It has the Boeing 737 MAX 7 but this is heavier and bigger, and has not much of orders.
Boeing 717 Delta

Boeing has recently indicated its interest in buyouts and mergers after United Technologies' buying of Rockwell Collins, and Northrop Grumman buying Orbital ATK.
Future Boeing 737 MAX7

Boeing and Bombardier has very little overlap in their product lines. This opens the possibility of Boeing buying and merging with Bombardier.
  1. Boeing has no airliner offering below the MAX 7 where Bombardier has good airliners down to 50 seats.
  2. Boeing has no turboprop airliners and Bombardier has the Q400.
  3. Bombardier has financial capital needs, and also weak market success.
  4. Bombardier recently explored a buyout deal with Airbus.
With these, there is a potential synergy in a Boeing-Bombardier. Instead of going at each other.

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