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Bombardier Inc. In The Aerospace Defence Industry

943 words - 4 pages

Bombardier Inc. began in 1902 as an American rail subsidiary known as The Locomotive and Machine Company of Montreal, and subsequently went through numerous acquisitions. In 1942, Joseph Armand-Bombardier, incorporated another Canadian company specializing in both civilian and military snowmobiles. Although J. Armand-Bombardier passed away in 1964, his company continues to grow today. By the 1970's and 1980's, Bombardier Inc. diversified into rail transportation and aerospace industries. Over the years, Bombardier Inc. has acquired several other businesses to compliment its existing business lines and it has expanded nationally as well as internationally. Bombardiers business is now divided into five sectors: Aerospace, Transportation, Bombardier Recreational Products, Bombardier International, and Bombardier capital. Bombardier is primarily involved in the transportation industry through Bombardier Aerospace and Bombardier Transportation. The products and services are currently offered in North and South America, Europe, Asia, Africa and the Middle East. This case will focus on the aerospace defense sector of Bombardiers business.AerospaceThe aerospace sector of Bombardier is made up of companies that manufacture aircraft and aircraft parts, space vehicles, and other related aerospace systems, as well as companies that provide services such as aircraft repair and maintenance. Bombardier is the world's third largest maker of civil aircraft behind Boeing and Airbus, and is also one of the two largest makers of business jets in the world. In Canada, Bombardier is the largest aerospace company with little direct Canadian competition due to its enormous size. Vector and Magellan are also Canadian aerospace companies who provide similar products and services, but to a much smaller scale in comparison with Bombardier Inc. The aerospace segment accounts for the largest portion of Bombardier's total revenues, comprising roughly 66% of the total revenue for 2001. For the year 2003 this segment's revenue amounted to 11.3 billion compared to 12.3 billion in the year before. The decrease of revenue in this segment is mainly due to the decline in business aircrafts delivered, from 220 regional aircrafts at the end of 2003, compared to 206 the previous year. Bombardier's aircraft customers include Delta, American Eagle, Malev Hungarian Airlines, Air Nostrum, and an Iberia franchisee. When not building aircrafts, Bombardier Aerospace also offers pilot and maintenance training, fractional jet ownership (Flexjet), charter services (Skyjet), aircraft interior completion, and maintenance, technical support, and parts services.It is important for the success of companies within the aerospace industry to keep a close watch on the global political arena. For example, Bombardier Inc. believes that Chinese and Russian markets should be pursued aggressively. However, in regards to Russia, this aggressiveness should be tempered with caution due to the country's...

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