MONTREAL – After making headlines several times in 2018, Bombardier could be in the heart of the economic news again this year, but this time, for better reasons, say experts.
If the quebec-based company has often made about her in a negative way in the last few months – taking control of the C Series by Airbus, high salaries of its leaders, the controversies surrounding its government subsidies, the year has however ended on a positive note, which could continue into 2019.
According to Louis Hébert, professor from HEC Montreal, the year actually ended on a “momentum” for Bombardier with the commissioning, in December, of its business aircraft Global 7500, of which all the copies are sold until 2022.
The professor, Mehran Ebrahimi, department of management and technology, UQAM, agrees, saying that with the Global 7500, “Bombardier has just dethrone the aircraft Gulfstream Aerospace”.
“The technology of this aircraft is so advanced that even its competitors will take several years before they catch up with the progress,” says Mr Ebrahimi.
The multinational is targeting annual revenue of 8.5 billion US $by 2020, derived in large part by the global sales of the Global 7500. This model, as well as the new Global 5500 and 6500, are able to compete with the products of Gulfstream Aerospace, the manufacturer’s rival to the american business jets as demand for airliners continues to grow.
Mr. Ebrahimi acknowledges that Bombardier “has not managed to make the C Series a commercial success, despite the technological success of the program”, but he hopes to see this “black period” fade in 2019.
Mr. Hébert believes that 2019 will mark a “year of recovery” for the manufacturer of planes and trains in quebec – whose image had been unfairly tarnished.
“Contrary to what you think, Bombardier is not so subsidized it,” he said.
It goes even further, arguing that the company would even be at a disadvantage compared to its competitors.
“For example, look at the number of billion euros that the French State has invested in Alstom, shows-t-it. Siemens, which has survived the worst scandal of corruption that can exist because they have been protected by the German State; Boeing benefits from the military to subsidize his civil aeroplanes; the same thing on the side of Airbus; Embraer, which has always been supported by the brazilian State.”
“If Bombardier is far from being out of the ordinary,” he says.
The strategic program of Alain Bellemare will also be monitored in 2019, ” added Mr Ebrahimi.