The Airbus announcement is here. Bombardier announcement is here. The table is a summary of the deal as reported by each firm.
The C Series program goes forward with Airbus running marketing and also exploiting its supply chain critical mass. Airbus will impact the Montreal aerocluster in a big way.
Notes from the briefing call. Italics reflect our view/understanding.
- Branding – no changes yet.
- (we don’t officially know what the aircraft that will be parked at the Farnborough Airbus chalet will be named)
- Sales – No combined efforts from BBD and Airbus. But new team starts July 1 on this. (we expect news at Farnborough)
- Supply chain – eventual desire is to double production. BBD will contribute to this. Ramp up expected to be difficult. Airbus to apply its expertise and power to drive down costs. No specific target number provided in terms of how much savings.
- To be able to double production sales must be increased. This is now an Airbus function which starts July 1.
- Part of this process requires corporate culture merging, which is an important target now.
- In terms of cost savings, the A320 program is a guide. They have identified which parts and suppliers, but they won’t name them now. (we expect UTC is at the top of the list)
- Future upsizing of CS – A320 and CS platforms are complementary. The plan is to integrate them. No clear answer on stopping A319 (need for ACJ) or A318.
- (we should not expect a CS500 anytime soon – Boeing can be expected to react negatively to such a move)
- Mobile FAL – production starting at rate four. Construction starts 2019 with deliveries to start 2020. The focus is on US market. Mirabel to remain primary FAL. The Mobile rate can increase depending on US demand.
- In terms of current production (BBD owned) such as Belfast, no changes envisaged.
- Airbus was complimentary about how BBD has managed the process to date.
Co-Founder AirInsight. My previous life includes stints at Shell South Africa, CIC Research, and PA Consulting. Got bitten by the aviation bug and ended up an Avgeek. Then the data bug got me, making me a curious Avgeek seeking data-driven logic. Also, I appreciate conversations with smart people from whom I learn so much. Summary: I am very fortunate to work with and converse with great people.
