Today, 2:58 PM
- United Airlines (NYSE:UAL) plans to order a fleet of 100-seat jetliners from either Bombardier (OTCQX:BDRAF, OTCQX:BDRBF) or Embraer (NYSE:ERJ) if it can agree on terms for a two-year contract extension with its pilots union, Bloomberg reports.
- For UAL, reaching a deal would assure labor peace with an important labor union for new CEO Oscar Munoz and bring back some flying now done by regional partners with cramped, less-efficient 50-seat planes.
- For Bombardier or Embraer, a sale to UAL would be a victory as they try to place their biggest narrow-body models at the largest U.S. carriers.
- Buying new 100-seat planes for mainline flying also would be a lure for pilots since it would generate jobs and appeal to their interest in cutting-edge aircraft.
- UAL shares are higher today after raising its Q3 profit forecast and issuing an upbeat traffic report.
Today, 9:07 AM
- Bombardier Transportation (OTCQX:BDRAF, OTCQX:BDRBF) is furthering its North American rail control footprint with two new mass transit projects.
- The first venture will deliver the communications-based train control solutions for Toronto’s Eglinton Crosstown Light Rail Transit Line.
- The second will install an automated people mover system at Chicago O'Hare International Airport.
Yesterday, 10:38 AM
- Canadian Liberal Party leader Justin Trudeau has confirmed his party is open to foreign investment in Bombardier ((OTCQX:BDRAF), (OTCQX:BDRBF +1.2%)) as long as it protects the country's interests.
- Trudeau made the comments after he was asked whether a Liberal government would allow a Chinese firm to buy a majority stake in Bombardier's CSeries passenger jet program.
- According to a Reuters source, the planemaker already approached an unnamed Chinese company but those discussions ended three to four weeks ago.
- Related: Airbus, Bombardier end CSeries investment talks (Oct. 07 2015)
Wed, Oct. 7, 10:22 AM
- Bombardier (OTCQX:BDRAF, OTCQX:BDRBF) has erased all of yesterday's gains after Airbus called off talks over supporting its troubled CSeries jet program.
- The stock is now down 16% to C$1.49 in Toronto after soaring 15% on Tuesday.
- Previously: Airbus, Bombardier end CSeries investment talks (Oct. 07 2015)
Wed, Oct. 7, 5:49 AM
- Airbus (OTCPK:EADSY) has called off talks with Bombardier over supporting the troubled CSeries jet, leaving the Canadian plane maker with few options to break into the 100-160 seat airplane market.
- Under a proposed tie-up, Airbus would have helped Bombardier (OTCQX:BDRAF, OTCQX:BDRBF) complete development of the troubled CSeries in exchange for a controlling stake in the program.
- Bombardier, which has so far received a total of 243 firm orders for the jet, was unable to win a single order for the plane at the Paris airshow in June.
- Previously: Reuters: Bombardier offered majority stake in CSeries jet to Airbus (Oct. 06 2015)
Tue, Oct. 6, 4:07 PM
- Bombardier (OTCQX:BDRAF, OTCQX:BDRBF) has approached Airbus (OTCPK:EADSF, OTCPK:EADSY) about selling a majority stake in the Canadian company's CSeries jet in order to shore up its depleted balance sheet, Reuters reports.
- Under a proposed tie-up, Airbus would help Bombardier complete development of the troubled CSeries in exchange for a controlling stake in the program, effectively ending Bombardier’s independent efforts to break into the 100-160 seat airplane market dominated by Airbus and Boeing (NYSE:BA).
- A source tells Reuters the contacts are "serious" but adds that it "would be an extremely complicated structure to set up."
Mon, Oct. 5, 5:58 PM
- Bombardier (OTCQX:BDRAF, OTCQX:BDRBF) needs more cash to produce the larger CS300 version of the CSeries jetliner, as well as to develop two new models of the Global business jet, and will need to raise more money by mid-2016, Scotiabank's Turan Quettawala says.
- The analyst cuts his 2015 free cash flow forecast for Bombardier to $1.7B from $2B “as order flow and, hence, advances remain very weak... unless this changes, Bombardier would need more cash by mid-2016 based on our estimates."
- Bombardier reportedly is exploring the sale of a stake in any of its business units, as well as a potential investment from a P-E firm or government, which Quettawala believes may be necessary.
Mon, Oct. 5, 11:39 AM
- Bombardier (OTCQX:BDRAF, OTCQX:BDRBF) is in discussions with the Caisse de depot et placement du Quebec, which manages Quebec's public pension plans, on a deal that could provide more cash for the company, Reuters reports.
- It is not clear how a potential deal may be structured, but the Caisse, already one of Bombardier's biggest shareholders, could be considering taking a larger stake in the company.
- A deal would shore up Bombardier's balance sheet relatively quickly, with minimal political fallout or impact on cash flow, while selling a major asset to a foreign buyer likely would spark a long government review and reduce badly-needed cash flow, and a direct government bailout may prove unpopular ahead of an Oct. 19 federal election.
Thu, Oct. 1, 11:58 AM
- Bombardier (OTCPK:BDRAF, OTCQX:BDRBF) is exploring the sale of a stake in any of its business areas, not just its rail unit, to ensure it can finish development of its delayed CSeries jet, Reuters reports.
- The Canadian plane maker is said to have hired investment bankers to look at a variety of financing options, including selling aerospace or rail assets in full or in part, forming joint ventures or bringing in P-E investors; Bombardier may hope to secure an additional source of cash, through the sale of a business unit or another arrangement, perhaps with a Canadian government, before its Q3 earnings report on Oct. 29.
- Reuters quotes a banking source as saying the company is not desperate for cash but wants to be proactive and shore up its stock, which has dropped more than 50% in the last year as it pushes to bring the new CSeries jet into service, years late and billions over budget.
Fri, Sep. 25, 7:42 AM
- After years of delays and cost overruns, Canada's Bombardier (OTCPK:BDRAF, OTCQX:BDRBF) expects to complete the final certification testing of its smaller new CSeries jet by the week of November 23, Reuters reports.
- Bombardier's share price has dropped sharply on concerns about demand for the new jets and rising cost of the $5.4B program.
Wed, Sep. 9, 6:32 PM
- Bombardier (OTCPK:BDRAF, OTCQX:BDRBF) surged 24% today in Toronto trading, the most in a single day since 1988, amid growing optimism over the potential value of the company’s rail unit and sales prospects for the CSeries jet.
- According to earlier reports, Bombardier rejected a proposal by Beijing Infrastructure Investment for 60%-100% of Bombardier Transportation that gave the business an enterprise value of as much as $8B.
- Bombardier is planning an IPO of the rail unit during Q4, which is now "much more interesting," says AltaCorp analyst Chris Murray, who had estimated a value for the unit of $6.1B.
- Meanwhile, interest in the CSeries from would-be buyers has been "overwhelming" since the Paris Air Show in June, according to slides from a speech made today by the president of the company’s commercial aircraft unit at a conference on aircraft financing in New York.
- Bombardier shares had lost 65% of their value YTD through Tuesday.
Wed, Sep. 9, 10:28 AM
- Bombardier (OTCPK:BDRAF, OTCQX:BDRBF) says its transportation unit is not for sale, following a report that said the maker of planes and trains had rebuffed an offer by a Chinese company.
- Bombardier rejected an offer by Beijing Infrastructure Investment for 60%-100% of Bombardier Transportation, saying the company is not exploring a deal involving a majority stake.
- Beijing Infrastructure’s reported offer gives Bombardier Transportation an enterprise value of $6B-$7B, a “reasonable valuation range" for the unit in an IPO planned for Q4, Canaccord analysts say.
Wed, Sep. 2, 10:04 AM
Wed, Aug. 26, 6:20 PM
- Bombardier’s (OTCPK:BDRAF, OTCQX:BDRBF) third-biggest CSeries customer is close to securing financing for its order, which would salvage a deal that once seemed risk of falling apart due to Western sanctions against Russia, Financial Post reports.
- Moscow-based Ilyushin Finance said today that it is nearing a deal with lenders to finance its order for up to 49 of the jetliners, provided it can first sign an agreement with an airline that wants to operate the aircraft.
- Separately, a high-ranking European executive at Bombardier’s train-making division has been dismissed from the company, as reports say the departure is linked to recent bribery allegations involving the company.
Mon, Aug. 10, 4:58 PM
- More than half of the CSeries orders Bombardier (OTCPK:BDRAF, OTCQX:BDRBF) is scheduled to fill over the next three years face some degree of risk that could result in delays or outright cancellations, according to a new analysis by Leeham.
- Of the 194 CSeries scheduled to be delivered during 2016-18, 102 fall into Leeham’s yellow or red risk categories due to geopolitical or financial uncertainty, which could result in an accumulation of “white-tail” aircraft, or planes that have been manufactured but are not designated for a specific airline.
- One of the CSeries customers with a red rating is Russian lessor Ilyushin Finance, which has placed 32 firm orders for the CSeries with options for another 10; another is Republic Airways (NASDAQ:RJET), which has ordered 40 CSeries with options for 40 more and says a shortage of pilots is forcing it to cut the flights it operates for big U.S. airlines.
Thu, Aug. 6, 8:54 AM
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