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by allengeorge
3169 days ago
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This is a huge blow for the Canadian aerospace industry, but the best that BBD could do in a bad situation. The plane itself is great, but management incompetence and customer worries about the company's long-term prospects made it a hard sell. Then, when BBD did make a sale to Delta, Boeing's naked politicking and the current administration's unreasonable duty made the situation untenable. BBD is essentially handing over the keys to the kingdom here: Airbus gets control of the program for nothing (they only have to allow the C series to be manufactured at an existing plant in Mobile) and if the program is successful they have the right to buy out the entire partnership; if it's unsuccessful they can walk away. Plus, it's unclear to me whether it's a way to actually push the C-series or a way to start conversations around it and then upsell customers to one of Airbus' existing narrowbodies. Again, not a good situation for BBD. Airplane manufacturing is a heavily political, heavily subsidized business, and since Canada is much smaller than the other players on the stage (US, EU, China, Russia) with a non-existent defence program it doesn't have the money or the weight to effectively compete. |
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Unless BBD is using an Airbus cockpit, this will turn out exactly as you think. Airbus will use the existence to upsell to "real" Airbus aircraft and this will be an afterthought. To do otherwise would jeopardize their value proposition and give Boeing an opening: "If you need a separate type rating anyways, why not consider a 737...?"