Analyst: Cash Crunch Could Further Delay Global 8000
While business aircraft remain a "crown jewel" within Bombardier, the need to prioritize could further delay the Global 8000, Vincent says.

As Bombardier’s cash woes continue in light of the failed CSeries negotiations with Airbus, the fallout could have a ripple effect on its other divisions, including the business aircraft division, according to Rolland Vincent Associates president and JetNet iQ director Rolland Vincent.


Bombardier already delayed Global 7000 development by two years, to 2018, and announced layoffs of 1,750 workers as it cut Global 5000 and 6000 production. While the company cited development issues and market forces for those decisions, Vincent believes Bombardier’s weakened cash position played into these moves. “The saga will continue until they secure more CSeries sales with branded global carriers and improve their balance sheet,” Vincent said, adding the lack of cash could force a “pause” in Bombardier’s Global 8000 program, at least as it works to bring the 7000 to market. Bombardier is in a situation where it needs to decide its priorities and the CSeries and 7000 take precedence, he said. Last month, Bombardier reconfirmed its expectation that the Global 8000 would enter service in 2019.


While talks continue of a potential sale of some of Bombardier’s Aerospace units, Vincent does not believe it will involve the business aircraft unit, calling it a “crown jewel” in the company. Learjet could be a potential candidate, but he questioned whether the unit would bring enough value to significantly alter the company’s cash position. Vincent also expressed concern that Bombardier’s ongoing issues will hurt orders, since its customers are business leaders who read the business news every day. And that has ramifications throughout industry. “This is not healthy for business aviation overall,” he said, noting that it makes markets more uncertain and become “a little irrational.”