Bombardier is consolidating its aviation operations into a single business unit, and plans to divest its aerostructures operations in Belfast and Morocco. The new aerospace structure will report to David Coleal, who heads the business jet operations, and reports to Alain Bellemare at the corporate level.
The new division will focus on the company’s key business jet products, the Global and Challenger lines, and the CRJ. The company’s commercial aircraft business has been in transition, with the CSeries
now majority owned by Airbus and the Q400 program sold. The remaining product, the CRJ, which evolved from the Challenger business jet, has now come full circle and is back to its roots.
Analysis
These moves by Bombardier will shrink the company into a more focus core, with two major lines of business, corporate jets and rail transportation. The divestiture of two aerostructures units, both of which are profitable, provides Bombardier an opportunity to focus on its core products. With major competitors like Spirit and Stelia (a unit of Airbus) growing significantly, the opportunity for a synergistic sale exists that will provide the cash needed to improve the Transportation group and fund programs under development, including the Global 5500 and 6500, within Aviation.
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