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Will the Bombardier CSeries Crack the Airbus-Boeing Duopoly? — Part One
As the Bombardier CSeries program gains traction and momentum, will this be enough to threaten the current Airbus - Boeing duopoly? (airwaysmag.com) Mais...
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I doubt it, Boeing and Airbus still will have a firm grip on large and long range, the Cseries (and maybe the MRJ) may impact the 737 and baby Buses but, the firm that is more likely to see sales lost is Embraer in my opinion. Of course, I'm sure time will prove me wrong.
Bombardier has designed and tested a first class product but now they have to switch gears and produce the aircraft reliably with controlled costs and deliver on a schedule to its customers. This is different than building a few prototypes for they have to orchestrate a smooth production from supply chain to construction to delivery. If they can do that and adapt the C-100 process to include the C-300 they will get the cash to move on, but this will take time.
But if they can transition, the PQ investment will do very well particularly if they can cut into their unemployment for it then becomes a twofer for them. Even if all the production goals are not me, the government will still recover most of its investment just from the employment. Folks should recognize that this province, while many of us don't agree with a lot their policies, have been very shrew and prudent investors in many Quebec enterprises like HydroQuebec which has consistently made money while at the same time offering low rates to Quebec consumers and making many small industries viable with lower energy costs. They sell 10% of New England's power to them to balance the lower costs.
But if they can transition, the PQ investment will do very well particularly if they can cut into their unemployment for it then becomes a twofer for them. Even if all the production goals are not me, the government will still recover most of its investment just from the employment. Folks should recognize that this province, while many of us don't agree with a lot their policies, have been very shrew and prudent investors in many Quebec enterprises like HydroQuebec which has consistently made money while at the same time offering low rates to Quebec consumers and making many small industries viable with lower energy costs. They sell 10% of New England's power to them to balance the lower costs.
Since they are being propped up by the peoples taxes country wide don't see why they wont under cut prices and sell AC. Seems like the logical thing to do don't let the true market speak let the tax dollars used to prop up a company speak not the first time.
They are not being propped up country wide. The Government of Quebec just bought an asset by picking up 49% of the company...the remaining stock is privately held in two groups A and B. The family own much of the A stock.The province like any other investor put the capital into the company by buying stock, undoubtedly diluting the value of some others but the market has not yet responded inappropriately. Both stocks dipped Friday and Monday but both have recovered over half of that today.
The family have only a thin margin of 1% of the stock. Half of that plus one share plus the PQ stock, management will be replaced. Sure there will be discounts but I can predict the province has hired someone that knows the industry thoroughly and will report if losses are too low and do not show the prospect of coming up. If they go under, the province eats its investment but is offset somewhat with unemployment savings and welfare costs.
The family have only a thin margin of 1% of the stock. Half of that plus one share plus the PQ stock, management will be replaced. Sure there will be discounts but I can predict the province has hired someone that knows the industry thoroughly and will report if losses are too low and do not show the prospect of coming up. If they go under, the province eats its investment but is offset somewhat with unemployment savings and welfare costs.
