After months of “commercial discussions” Bombardier and Triumph have reach an agreement in which Bombardier takes over Triumph’s wing production for its flagship business jet in Red Oak, Texas. Triumph had long reported a cash strain from the Global 7500’s wing development, and some industry analysis speculated that this contract would end similarly to Triumph’s recent agreement to return G650 wing manufacturing to Gulfstream in Savannah, GA.
With Bombardier making a strategic push to grow its Aerostructures business, and a desire to de-risk the ramp-up of the Global 7500, this acquisition is a logical conclusion and ticks several key boxes in Bombardier’s strategy.
The Global 7500 wing design and performance are now locked in, and the aircraft has been certified and its first aircraft delivered. The wing is a unique design, helping the aircraft to offer both M.925 performance and steep approach capabilities on an aircraft that is the size of a typical regional airliner.
Bombardier now takes control of a key risk element in the Global 7500 ramp-up. With a plan to increase production to 40+ units in 2021, Bombardier has the opportunity to both manage the production ramp-up and reduce costs for this key aircraft component.
The fit with Bombardier’s Aerostructures business also makes this a strategic acquisition. Bombardier is already manufacturing the wing for the A220 using an industry-leading resin transfer molding process for its composite construction. The addition of the Global 7500 wing will mean that Bombardier will produce two of the most talked about wings in the industry that help make the A220 and Global 7500 market disruptive aircraft.
The Bottom Line:
Bombardier’s Aerostructures business, adding another wing to its portfolio, is well positioned to continue to be a major player in the industry, and with its unique expertise, potentially grow as its serves both Bombardier Business Jets and Airbus as a supplier for future programs. Triumph couldn’t make the G650 or Global 7500 programs work profitably for them, and the return of wing manufacturing home to the OEMs was a logical, and perhaps inevitable, solution that fits well with Bombardier’s strategy.