DBEA55AED16C0C92252A6554BC1553B2 Clicky DBEA55AED16C0C92252A6554BC1553B2 Clicky
May 26, 2024
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[UPDATED] Yesterday Bombardier Commercial Aircraft announced that their SVP Sales, Marketing and Asset Management had left the company for “personal reasons”.   Mr. Jones was a ten year veteran at Bombardier and took over his former position in December 2013. He was well known for bringing Bombardier’s business jets into the Russian market.

This departure of another senior executive from Bombardier no doubt has some wondering what is happening.   Mr. Jones’ departure was preceded by that of his predecessor Chet Fuller.  Recently the company laid off many senior people in a major reshuffle.

Vendors and customers are probably having some anxiety over another senior management changes, particularly in marketing.   Is this concern valid?

The short answer is yes. Given the delays in the CSeries and the follow on negative press, Bombardier management looks less than stable. But before ascribing too much to this news consider a few items.

  • Personal reasons probably mean just that. Gary Scott and Chet Fuller also left for personal reasons.
  • If Mr. Jones’ departure was planned by Bombardier, they would have had a replacement ready. Since they don’t, it probably means Mr. Jones made this decision.
  • Mr. Jones departure could be for any of a host of reasons. None of which really impact the company.
  • Bombardier Commercial Aircraft had a very good 2014 – orders were up over 90% compared with 2013 (which was an awful year) and over 11% more than 2012. Indeed the company had a great December with 48 orders. Orders for 2012 were 138, 2013 was 81 and 2014 looks to be 154.

The stock market took this news in its stride yesterday and the stock closed higher.

2015-01-09_13-46-47We would suggest that those who immediately jump to the most negative conclusions wait for more information.

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