The framework agreement from a year ago has made huge progress. Yesterday’s announcement is remarkable. Never before have two aircraft companies decided to combine their interests quite like this. It is more than ground breaking. For an airline looking at new technologies the combined offering could be very interesting. COMAC has some catching up to do, but with Bombardier’s help that process will likely accelerate. For Bombardier this friendship is pregnant with potential – China is a huge market. Bombardier has been doing business in China a long time and understands the unique challenges that brings to the table. Having COMAC as an ally is only good news for the Canadians.
Talking about the new arrangement being put in place between the companies is Bombardier’s Ben Boehm. Play
The Boeing Airbus duopoly, fierce jockeying for orders and endless subsidies spats not withstanding, is ultimately committed to mutual self-preservation and the status quo. This smug, anticompetitive culture that aggressively seeks to crush new entrants, at any cost, makes them easy to hate. Yes, the Dreamliner and A380 are engineering wonders and there is a lot to like in the new product lines. But I for one cannot help but root for the underdog here.
This C919-C Series tie up looks like a master stroke. I would say both still face a very steep uphill battle against the incumbents, but here’s hoping this “family” approach can push them over the edge, particularly in the critical Chinese market, where relationships (guanxi) are everything.
Thanks Addison for the great coverage here.
Thanks much Caleb