Premium #221 – Can Bombardier’s New “All-In” Strategy for the CSeries Succeed?

The new management team at Bombardier appears to be on a mission to secure as many orders for the CSeries as possible, to build both backlog and momentum for the program.  While these orders may come at lower prices, as rumored with the Air Canada and Delta deals, Bombardier recognizes that it needs “critical mass” to enable it to achieve scale economies that will enable the aircraft to be profitable with lower margins.  In a nutshell, the new strategy at Bombardier can be summarized in two words – “all in”.

Airbus and Boeing have been taking turns beating up on Bombardier in recent campaigns, from EasyJet to Vueling to United, the prices we’re hearing in the market certainly don’t match what economic theorists would expect from a duopoly.