Bombardier, unlike Embraer featured yesterday, has become the aerospace company it is today by combining a number of companies together over the past 25 years.   Its first purchase was Canadair (maker of the Challenger 600), then Short Brothers (maker of the Shorts 360), LearJet and, finally, Dehaviland (Canada) from Boeing. 

 

Notably, products from 3 of those 4 manufacturers exist in one form or another today.  The Canadair Challenger business jet is the basis for the regional jet CRJ-100/200 series.  The Dehaviland Dash 8 / Q400 continues in production today and LearJet is still selling small, affordable business jets.

 

Bombardier has pursued two lines of growth in the commercial airline world in the form of its regional jets (CRJ series) and the Q400 turbo-prop from its DeHaviland subsidiary.   

 

The Dash 8 Q400 is arguably the most efficient regional “jet” available today in that the Dash 8 series is powered by 2 Pratt & Whitney (Canada) turbine engines (and actually does derive some tiny percentage of its forward speed from jet “thrust” in addition to its propeller propulsion).   The Q400 has seen some renewed interest in its product line and finds itself in the enviable position of airliners showing strong interest in the far greater efficiency of these aircraft over 500nm sectors (or less.)

 

Colgan Air (serving as a regional airline to Continental) has adopted a fleet and Frontier Airlines and Horizon Airlines both have new fleets of these aircraft.  Operating costs that are about 1/3 to 1/2 of a regional jet, the Q400 offers comfort (equivalent to a E-Jet), speed (no substantive differences on sectors of 500nm or less from “real” jets) and low entry costs. 

 

Expect Bombardier not only to continue this line of aircraft but also to improve it over the next few years.  Its conceivable that a still larger model with stronger engines could be offered and become quite competitive on both intra-state (Texas, California) and regional (upper North East, Midwest) routes that are currently served by mainline aircraft.   Their only real competitor, ATR, does offer similar aircraft but lacks the financial muscle and diversification of most other aerospace companies. 

 

Everyone wants to fly a jet.

 

Bombardier has a strong, successful line of regional jets that began with the CRJ100/200 series seating 50 passengers and first offered in 1991.  This series has now been superseded by the CRJ700/900 series seating from 70 to 90 passengers and first offered in 2001.  The CRJ1000 is in development and offers a 100 passenger capacity and should enter service some time in 2010. 

 

The early CRJ100/200 jets were 2×2 seating that was cramped and had limited headroom whereas the new(er) CRJ700/900/1000 offer increased headroom and legroom using the same size fuselage.    Both series have seen extensive service with a wide variety of airlines around the world. 

 

The next generation of aircraft, the C-Series, launched in 2008, offers the promise of a wider fuselage accommodating 3×2 seating and from 110 to 140 passengers.  This aircraft will be among the first to use the Pratt & Whitney Geared Turbo Fan engine and,  with the use of extensive composite materials, should be among the most efficient in its class. 

 

In addition, the range offered by these aircraft put them into near trans-continental reach and certainly encroach a great deal of territory currently held by Boeing and Airbus. 

 

This program, first launched in 2006, first saw a suspension due to a lack of orders and then it was re-started in 2008.  Currently, only Lufthansa has made a commitment to the aircraft (30 options) but the range and efficiency of this proposed series should attract other airlines in the next year or so. 

 

Like Embraer, Bombardier must grow and growth means launching future aircraft into Boeing and Airbus’ territory.   Bombardier, so far, has shown an inclination towards going it alone into this territory by pushing forward with its next series. 

 

The next step for Bombardier (in about 10 years time) may be a real mainline aircraft seating from 140 to 180 people in a 2×3 or 3×3 configuration.  This will be dependent on whether or not their CRJ-700/900/1000 series aircraft require an update and whether or not the market for a sub-100 seat regional jet continues to exist (likely). 

 

Bombardier is challenged by its location in Canada (Montreal) with strong ties to unions and an expensive supplier base.  In addition, Bombardier has experienced difficulties in ramping up and maintaining high volume production.  Although they have experimented with assembly in China by shipping complete assembly packages there for construction, they have no real ties to other parts of the world that could lead to reduced manufacturing costs (most particularly labor costs.)

 

Bombardier will continue as a viable and competitive aerospace company.  Whether it can last in competition with Embraer and (in the future) Boeing and Airbus remains to be seen.  Embraer has the advantage on costs while Airbus and Boeing have an advantage in knowledge.  They may become the regional airliner firm to beat with Embraer moving up a class against Boeing and Airbus.

Filed under: Aircraft Development by ajax