Bombardier Case Study Essay

Pratt & Whitney Canada (PWC) is an aircraft engine manufacturer with global service operations and is a subsidiary of the American company United Technologies Corporation (UTC). While many business segments utilize PWC engines, the two primary sectors include civil and military aviation. With a workforce of approximately 9,000 employees across seven Canadian plants, PWC has produced over 80,000 engines to date (PWC - New Hire, 2014). The impact of PWC’s corporate presence on Canada’s economy is reflected in the fact that it contributes, on average, over $2 billion per year to the country’s gross domestic product (PWC - Economic Impact, 2014). PWC prides itself in being a leader among leaders where, “[m]ore than 10,000 aircraft operators around the globe depend on [their] engines to power their aircraft and helicopters…in over 200 countries” (PWC - Economic Impact, 2014). Their future growth strategy “includes emerging markets such as Russia, China and

Air Canada is Canada 's largest full-service airline and the largest provider of scheduled passenger services in the Canadian market, the Canada-U.S. trans-border market and in the international market to and from Canada. In 2010, Air Canada improved its reputation as one of the world’s leading international air carriers. Significant progress was made on executing and delivering on its four key priorities and this, coupled with improving economic conditions, allowed Air Canada to record operating income of $407 million in 2010, a $677 million improvement from 2009. Air Canada’s financial strategy is to continue to improve both the level and sustainability of its

With only a few large companies across the globe (Boeing, MD, and Airbus), the commercial aircraft industry essentially exhibits the qualities of an oligopolistic competition with intense rivalry. Here is an analysis of competition in the commercial aircraft business using Porter’s Five Forces.

We interview the site general manager for a company called Bombardier Transportation. His name is Jeff Gaffney. His official company title is MARC Operations General Manager. Bombardier Transportation is one of two subsidiaries of the company. The other half is Bombardier Aerospace. The parent company is called Bombardier Inc. Bombardier Inc. is headquartered in Montreal Canada. Jeff Gaffney is only involved in the transportation division of the company which is headquartered in Berlin Germany. Bombardier is the leading manufacturer of trains and the third leading manufacturer of planes. The company as a whole has roughly about 72,000 employees with a revenue averaging around $16.8 billion. These numbers are statistics split between the two divisions of the company. As stated before Mr. Gaffney is involved in the transportation division of the company so that is what the interview was primarily about.

Air Canada arranges a proactive strategic procurement plan to obtain different goods and services that are vital and fundamental for company growth. These strategies are based on analysis of their historical spending and on educated forecasting of requirements and opportunities. Air Canada is able to create and improve important relationships with key strategical suppliers due to their pronounced buying volume allowing them to acquire greater leverage.

Of considerable concern is that Boeing and McDonnel Douglas have a significant head start in the market. In a shrinking market, the Tri Star, though far superior to the competition, may have missed the window of opportunity. Airline revenues are down while labor and fuel costs are rising. This will drive down demand for all producers of wide-body aircraft.

It is also in the mind of the Air Canada managers to plan a cost-cutting efforts with plan to cut 15% from efficiencies as well as labor savings by transferring more regional fling to SKY Regional Another major effort will be reducing fuel consumption on the ground by using ground power at the gate to using a lighter paint which will reduce ancillary revenues, the fees airline charge for services from checked baggage to internet connection Air Canada also had a plan of purchasing fuel efficiencies and simplified airline fleet in the future to boost the existence orders for 33737 MAX 8 and 28737 MAX 9 aircraft Air Canada continues to evaluates the potential replacement of its Embraer E190 fleet with more cost efficient, larger narrow body aircraft that are better suited to its current and future network strategies. In consistence with this future plan, Air Canada made agreement with Boeing which will purchase up to 20 of the Air Canada’s existing 45 Embraer E190 aircrafts currently in the Air Canada’s

WestJet operates in a non-union environment which means they have lower labour costs and a relatively low risk of labour disputes.

Overview Bombardier Aerospace is a division of Bombardier Inc. and the third largest global airplane manufacturer after Boeing and Airbus. Its headquarters are in Quebec, Canada, and with 33,600 employees is poised to become a major player in helping the developing world acquire aircraft. The C-Series is a family of narrow-body, twin-engine, medium range jet liners which, despite some challenges in orders, remains a committed product line. It is designed for the 100-150 seat market, which is about 20,000 aircraft globally and represents about $250 billion in revenue over the next few decades. One interesting fact about the C-Series is that it is truly global in components and supply, sourcing from manufacturers in China, Italy, The Netherlands, France, the United States, and Great Britain (Change is in the Air, 2012).

1. How would you describe Boeing’s approach to project management? What are its strengths and weaknesses?

Dominating the commercial aircraft market for decades, Boeing is considered to be the most highly competitive U.S aerospace industry. “U.S. firms manufacture a wide variety of products for civil and defense purposes and, in 2010, the value of aerospace industry shipments was estimated at $171 billion, of which civil aircraft and aircraft parts accounted for over half of all U.S. aerospace shipments. The U.S. aerospace industry exported nearly $78 billion in products in 2010, of which $67 billion (or 86% of total exports) were civil aircraft, engines, equipment, and parts” (Harrison, 2011). However, its position of influence has lessened in recent years. This is due to its main competitor, Airbus, who in recent years has made significant

The following analysis discusses the suppliers, buyers, industry competition, threats to entry, and substitutes that exist within the large commercial aircraft industry. Additionally, the analysis identifies the pressure that each of these groups applies on the industry and estimates the impact this pressure has on potential industry profits. Each group is identified using a high, medium, or low-pressure classification. A high-pressure classification indicates the group reduces industry profit potential and vice versa.

The announcement of an outdated CRJ1000 instead of the highly anticipated CSeries came to a shock to analysts and shareholders. It has now become unclear to investors what Bombardier’s future strategy will be within the aerospace industry.

Bombardier started in the year 1942 and went on to become a key player in the transportation industry. It entered the market of rail transportation in 1974 and 8 years later its desire to diversify led it to enter the Aerospace Industry. By January 31, 2007 Bombardier Transportation posted revenues of $ 6.6 Billion of which 55% came from Aerospace division.

The Airline industry has experienced continual problems with rising costs with both fuel and maintenance which has caused them to increase their fees to the consumers to pay for those rising costs. This paper will help explain what an airline such as Delta does to help alleviate such costs without forcing its consumers to flip the bill through high fees that consist of tickets, baggage fees and food. The costs of doing business in aviation today have spiraled out of control making it very expensive for both airlines and the