COMAC and Bombardier today signed a framework agreement to establish long-term strategic cooperation on commercial aircraft. This collaboration will leverage the synergies and strengths of both companies to develop mutually beneficial projects.
This long-term strategic cooperation agreement is based on both COMAC’s and Bombardier’s desire to build on the potential complementary nature of their products and respective expertise. This includes exploring collaboration in their marketing, customer relationship and customer support strategies to help each other increase overall market share in emerging and mature markets.
The PR announced that both parties will also evaluate possibilities for cooperation with regards to C919/CSeries aircraft program commonalities, joint procurement as well as collaboration on future Bombardier and COMAC product lines.
This last paragraph is worth noting. Then pay attention to two quotes from the PR also.
“COMAC is pleased to work closely with Bombardier to efficiently identify areas of mutual collaboration and explore future endeavours. Both our companies have specific strengths that, when combined, will enhance the competitiveness of our respective aircraft programs and businesses as a whole,” said Mr. Zhang, Chairman of COMAC.
“This agreement represents another important step in the strengthening of our relationship. We believe that this collaboration will generate positive results for both the C919 and CSeries aircraft programs. It also opens the door to further cooperation on any other projects that would be mutually beneficial,” stated Pierre Beaudoin, President and Chief Executive Officer of Bombardier Inc.
It would seem that COMAC has found a western partner and Bombardier has a deal with China at the highest levels of its budding aerospace industry. In our view this is very important news.
The Chinese need help learning how to sell their new aircraft in the west, as well as guidance on how to refine their models for export markets. Bombardier will provide that expertise.
Over the long term, the Chinese will learn how to market aircraft in the west from Bombardier, who can earn additional revenue providing customer support, maintenance, spares and other support for the C919 in North America and Europe, where they already have world class facilities. China gains expertise through this cooperation, and Bombardier gains greater access to the China market. We expect an order for the CSeries from China at one of the upcoming shows.
This is a good news message for both COMAC and Bombardier.