Coronavirus Update: Our team is here to help our clients and readers navigate these difficult times. Visit our Resources page now »

Skip to Main Content

About Bombardier Aerospace Corporation

Bombardier is a leading manufacturer of both planes and trains. It makes and sells business aircraft including its iconic Learjet and Challenger, and its transportation division manufactures a variety of rail vehicles, including people movers such as metro trains, monorail systems, and high-speed trains. The company also provides aftermarket parts as well as engineering services at its worldwide network of service centers. Most of Bombardier's business is generated in Europe and North America. In 2019 Bombardier agreed to sell its CRJ Series commercial regional jet program to Mitsubishi Heavy Industries for $550 million and sell its Aerostructures business to Spirit AeroSystems Holding in a deal valued at about $700 million.

Operations

Bombardier divides itself into two main segments: Transportation and Aviation. The Transportation segment makes and sells rail vehicles such as automated people movers, monorails, advanced rapid transit trains, and high-speed trains and locomotives. It also offers fleet maintenance and signaling solutions for mass transit. 

The Aviation segment includes Business Aircraft, Commercial Aircraft, and Aerostructures and Engineering Services. These include the Learjet, Challenger, and Global aircraft families. The Aerostructures and Engineering Services division provides aircraft structures, component repair, aircraft parts, and aftermarket technical support.

In 2018 and 2019 Bombardier made some major moves to focus on its core Business Jet and Transportation businesses. In 2018, it formed a partnership with Airbus which gave Airbus a majority stake in Bombardier's C Series commercial aircraft program, which has since been rebranded the Airbus A220. Bombardier holds a 34% stake in the partnership. 

In 2019 Bombardier exited its business aircraft training and Q Series aircraft businesses and agreed to sell its CRJ regional jet operations to Mitsubishi Heavy Industries. The completion of the CRJ Series deal will mark Bombardier's exit from the commercial aircraft market. Bombardier has also announced it would sell its Aerostructures business to Spirit AeroSystems Holding. 

 

Geographic Reach

Headquartered in Montreal, Canada, Bombardier does business in North America, Europe and Asia-Pacific. 

Financial Performance

Bombardier's revenue improved in 2018 after several years of heading in the wrong direction. Sales fell nearly 20% between 2015 and 2018.

Sales in 2018 increased less than 1% to C$16.23 billion compared to C$16.2 billion in 2017. Growth in 2018 was fueled by the Transportation, Business Jet, and Aerostructures and Engineering Services segments.  

Net income in 2018 was C$232 million compared to a C$494 million loss in 2019. The improvement was primarily due to cost savings resulting from Airbus taking over operations of Bombardier's C Series commercial aircraft program (now the Airbus A220).  

Cash at the end of 2018 was $C3.19 billion, an increase of C$130 million from the prior year. Cash from operations contributed C$597 million to the coffers, while investing activities used C$701 million, mainly for capital expenditures. Financing activities brought in C$221 million, primarily from the issuance of Class B shares.  

 

Strategy

Bombardier is still working its way through a business transformation which began in 2015. The company is focusing on its core Transportation and Business Jet operations. In 2018 Bombardier achieved two major milestones in its transformation. Its Global 7500 business jet entered service and the lengthy development and investment process will start reaping financial benefits. Bombardier also finalized its Airbus partnership which gave the aerospace giant a controlling interest in Bombardier's C Series commercial aircraft program (the C Series has since been rebranded as the Airbus A220).  The deal frees Bombardier from the high costs associated with playing in the commercial aircraft space while leveraging Airbus' procurement, sales, and marketing resources for greater reach and scale. Bombardier holds a 35% stake in the partnership.

The company further tightened its focus in 2019 with a slew of deals. Early that year it sold its flight and technical training business to Canada-based flight simulator company CAE for net proceeds of about C$500 million. Later that year, Bombardier sold the assets of its Q Series turboprop aircraft business to De Havilland Aircraft of Canada, an affiliate of Longview Aviation Capital Corp., for about C$300 million. 

Also in 2019, Bombardier agreed to sell its CRJ Series commercial regional jet program to Mitsubishi Heavy Industries for about C$550 million, essentially marking the end of Bombardier's foray into the commercial aircraft market. Later that year the company agreed to sell its Aerostructures business to Spirit AeroSystems Holding in a deal valued at about C$700 million. 

Paring down its noncore aerospace holdings gives Bombardier room to concentrate on its Transportation segment, which at the end of 2018 enjoyed a project backlog of more than $35 billion while improving the mix of service and signaling contracts. Bombardier is well positioned to take advantage of the trend of urbanization and strong demand for efficient and environmentally friendly public transportation.

Company Background

Bombardier got its start in the 1920s when mechanic Joseph-Armand Bombardier began converting old cars into snowmobiles. He founded L'Auto-Neige Bombardier Limited in 1942 to make commercial snow vehicles. In 1959 Bombardier introduced the first personal snowmobile, the Ski-Doo. Bombardier went public in 1969. 

The company won its first mass transit contract to build Montreal subway cars.  

During the 1980s Bombardier continued to diversify. The company entered the European railcar market in 1986, the same year it acquired Canadair, Canada's largest aerospace company, from the national government.

Bombardier began development of a commuter aircraft, the Canadian Regional Jet in 1989. In 1990 the company bought US-based Learjet, and two years later it acquired a stake in de Havilland, a regional aircraft maker. 

Bombardier doubled the size of its European operations in 1998 by buying German railcar maker Deutsche Waggonbau. In 2001 Bombardier acquired DaimlerChrysler's Adtranz rail systems unit. Bombardier divested its Recreational Products unit (snowmobiles and personal watercraft) in 2003.

In 2007 the company launched its plan to enter the commercial jet business with the C Series line of planes. 

 

 

Bombardier Aerospace Corporation

7336 Aviation Pl
Dallas, TX 75235-2802
Phone: 1 (972) 960-3810

Firm Stats

Employer Type: Privately Owned
Cl 300 604 605 Instructor: Jim Anderson
Regional Vice President Sales Middle: Khader Mattar
Director, Lessor Sales and Specialized Aircrafts: Delio Petohleb
Employees (This Location): 10
Employees (All Locations): 20

Major Office Locations

Dallas, TX

Other Locations

Des Plaines, IL
Minneapolis, MN
Dallas, TX