10-15-2015, 07:27 AM
Embraer chose wisely, by not taking on Airbus and Boeing in that niche of the plane marketplace. Bombardier is finding out that taking on giants can be painful.
Fuel costs far less, Airbus and Boeing are upgrading their existing options, as well as discounting and adding incentives that Bombardier cannot afford to match. Airbus and Boeing won't help Bombardier, neither will Embraer. Moreover, the Beaudoin family's hubris will stop Bombardier from taking the necessary steps and eating humble pie. With effective control of voting, options are becoming choked off.
The Caisse wanted a change of 10:1 voting for class A shares to 6:1. With Bombardier burning cash at a profligate rate with an empty order book for the CSeries, the most likely option I see to salvage Beaudoin family pride is a compromise on some sort on voting privileges in return for more direct and indirect provincial and federal subsidies in the form of debt and equity investment.
So, a government bailout.
Fuel costs far less, Airbus and Boeing are upgrading their existing options, as well as discounting and adding incentives that Bombardier cannot afford to match. Airbus and Boeing won't help Bombardier, neither will Embraer. Moreover, the Beaudoin family's hubris will stop Bombardier from taking the necessary steps and eating humble pie. With effective control of voting, options are becoming choked off.
The Caisse wanted a change of 10:1 voting for class A shares to 6:1. With Bombardier burning cash at a profligate rate with an empty order book for the CSeries, the most likely option I see to salvage Beaudoin family pride is a compromise on some sort on voting privileges in return for more direct and indirect provincial and federal subsidies in the form of debt and equity investment.
So, a government bailout.