Bombardier Inc.

Bombardier Inc.

File:Bombardier logo.svg Logo since 2018
Company type	Public
Industry	Aerospace, Transportation
Founded	January 1, 1942 (1942-01-01) in Valcourt, Quebec, Canada
Founder	Joseph-Armand Bombardier
Headquarters	Montreal , Canada
Area served	Worldwide
Key people	Éric Martel (President and CEO)
Products	Business jets (Global series, Challenger series), formerly commercial aircraft, rail vehicles, snowmobiles
Number of employees	18,100 (2023)
Website	www.bombardier.com

Bombardier Inc. () is a Canadian manufacturer in the aerospace sector, primarily focused on business jet production. The company’s headquarters are located in Montreal. It was established in 1942 in Valcourt by Joseph-Armand Bombardier, originally to commercialize his invention of snowmobiles. Over time, it expanded to become one of the leading global producers of both aircraft and rail vehicles.

During the 1970s and 1980s, Bombardier broadened its scope to include public transit vehicles and commercial aircraft, evolving into a multinational corporation. By the end of the 1980s, its revenue had multiplied six times within six years, positioning it as North America’s foremost railway vehicle manufacturer, Canada’s largest aerospace company, and the world’s top snowmobile producer. This rapid expansion was largely fueled by acquiring struggling government-owned enterprises and successfully revitalizing them.

Nonetheless, the introduction of the CSeries aircraft generated substantial debt, nearly causing Bombardier to face bankruptcy around 2015. As a result, the firm divested most of its businesses except for its focus on business jet manufacturing.

Currently, Bombardier manufactures two main lines of corporate jets: the Global series and the Challenger series. On May 18, 2021, the Global 7500/8000 became the first business jet to exceed the speed of sound and holds the distinction as the fastest civilian aircraft since the Concorde. With 138 business jets delivered in 2023 alone, Bombardier continues to lead globally in business jet production.

Corporate affairs

Key financial and operational metrics for Bombardier (for fiscal years ending December 31) include:

Year	Revenue (US$ bn)	Net income (US$ m)	Employees
2018	16.2	318	40,650
2019	7.4	–1,607	24,350
2020	6.4	–568	16,000
2021	6.0	5,070	13,800
2022	6.9	–148	15,900
2023	8.0	445	18,100

Commercial aviation

In 1986, Bombardier purchased Canadair from the Canadian government for C$120 million after it had incurred heavy losses. The acquisition of Short Brothers followed in 1989. Additional purchases included Learjet in 1990 and de Havilland Canada from Boeing in 1992.

Bombardier launched Flexjet in 1995 and later sold it in December 2013 for $195 million. Its commercial aviation division delivered the inaugural CSeries CS100 aircraft (now Airbus A220) to Swiss International Air Lines in June 2016 after securing a major contract with Air Canada. Delta Air Lines also placed substantial orders that year.

In 2017, Boeing filed a complaint alleging Bombardier sold the CS100 to Delta at subsidized prices, leading to proposed tariffs up to 219%. The governments of Canada and the UK opposed these tariffs due to concerns about aerospace employment. The US International Trade Commission ultimately rescinded the tariffs in early 2018; Boeing chose not to appeal.

By July 2018, Airbus acquired a controlling interest (50.01%) in the CSeries program for a symbolic one Canadian dollar, with an option to take full ownership by 2024. Airbus also opened a second assembly line at its Mobile, Alabama plant.

In November 2018, Bombardier divested its turboprop passenger aircraft unit De Havilland Canada to Viking Air and announced layoffs affecting approximately 5,000 employees. In March 2019, it sold its Business Aircraft Training unit to CAE Inc. for $645 million.

On June 25, 2019, Bombardier agreed to transfer ownership of the CRJ program to Mitsubishi Heavy Industries while maintaining assembly operations at Mirabel until existing orders were completed.

In October 2019, Bombardier reached an agreement to sell its aerostructures division to Spirit AeroSystems. Due to delays caused by COVID-19, this transaction was finalized in October 2020 with facilities located in Belfast (UK), Casablanca (Morocco), and Dallas (USA) transitioning to Spirit AeroSystems. This sale aligned with Bombardier's strategic decision to concentrate solely on business aircraft manufacturing.

In February 2020, Airbus increased its stake in the A220 program by acquiring an additional 25% for US$591 million, marking Bombardier’s full exit from commercial jet production.

Bombardier Capital

Bombardier Capital (BC), a subsidiary of Bombardier Inc. founded in 1973 in Colchester, Vermont, focused on providing secured financing solutions for dealer inventories of recreational and consumer goods, especially Bombardier Recreational Products, throughout the United States, Canada, and Europe. Its customer base consisted of dealers for Sea-Doo and Ski-Doo, along with retailers involved in manufactured housing, recreational boats, and specialty vehicles. Additionally, BC extended domestic and international lending, asset management, and leasing options for business aircraft as well as commercial and industrial machinery, including sectors like technology and telecommunications.

In August 1997, BC formed a strategic alliance with CGI Inc. to deliver IT services to BC’s clientele while simultaneously offering project financing to CGI’s customers. That same year, BC relocated its loan origination and servicing functions to Jacksonville, Florida.

BC ceased originating new loans in 2001 and subsequently sold its Inventory Finance Division to GE Commercial Finance in 2005 before ultimately winding down operations.

Military

In 1981, Bombardier acquired the rights to manufacture the Volkswagen Iltis, with production concluding in 1989.

Following the 1991 acquisition of UTDC by Bombardier, its military product portfolio included:

• UTDC 24M32 - Heavy Logistics Vehicle Wheeled (HLVW) trucks derived from the Steyr 91 (Percheron)
• Medium Logistics Vehicle Wheeled (MLVW) trucks based on the M35 2-1/2 ton cargo truck

Bombardier divested its Canadian military division in 2003 by selling Military Aviation Services to SPAR Aerospace, while discontinuing land-based military product operations inherited from UTDC.

Public transport bus in Ireland

During the late 1970s, CIÉ (now operating as Bus Éireann and Dublin Bus) in the Republic of Ireland commissioned a series of single-decker and double-decker bus models for design and production.

To fulfill this project, CIÉ collaborated with Bombardier and General Automotive Corporation (GAC) from Ann Arbor, Michigan. Together they established Bombardier Ireland Limited, with Bombardier holding a 51% stake and GAC owning 49%. In August 1983, Bombardier divested its shares to GAC, which renamed the company GAC Ireland Limited.

The prototypes were developed in Germany, followed by assembly of 51 KE-type express coaches and 366 KD-type double-decker buses between 1980 and 1983 at the Shannon facility in County Clare. These vehicles remained operational until the late 1990s and early 2000s. Several units are now preserved at the National Transport Museum of Ireland located at Howth Castle.

Rail equipment

After the energy crisis of the 1970s led to diminished snowmobile sales, Bombardier expanded its focus into rail transportation.

The company’s first rail order arrived in 1974 for manufacturing MR-73 trains intended for Montreal Metro. In 1975, Bombardier acquired Montreal Locomotive Works but later sold it to General Electric in 1988.

In 1982, Bombardier secured a $663 million contract to produce 825 R62A subway cars for New York City's Metropolitan Transportation Authority.

By 1985, the firm discontinued locomotive production to concentrate on passenger train rolling stock. It expanded through acquisitions including La Brugeoise et Nivelles (1986), U.S. railcar businesses Budd Company and Pullman Company (1987), as well as ANF Industrie (1989). Further purchases extended operations into markets across the United Kingdom, Germany, Switzerland, Canada, and Mexico.

In 1996, Bombardier spearheaded development of the Acela Express trains—the fastest passenger trains in North America—under a $710 million contract; however, technical difficulties resulted in legal disputes with Amtrak.

The acquisition of Adtranz (DaimlerChrysler Rail Systems) in 2001 significantly boosted Bombardier’s presence as a leading global manufacturer of railway rolling stock. This division produced models such as the Bombardier Turbostar.

In 2005, Bombardier introduced the high-speed Bombardier Zefiro trains capable of reaching speeds up to 380 km/h for China’s Ministry of Railways.

On February 13, 2020, an agreement was reached for Alstom to acquire Bombardier Transportation for €7 billion; this transaction was finalized on January 29, 2021.

Bombardier Recreational Products

In 1935, Joseph-Armand Bombardier, a mechanic hailing from Valcourt, Quebec, engineered the inaugural snowmobile featuring an innovative propulsion mechanism that allowed traversal over snow and marshy landscapes. By 1937, he had secured a patent and sold a dozen seven-passenger "B7" snow coaches, which were utilized in rural Quebec for transportation and emergency response. In 1941, Bombardier established a manufacturing plant in Valcourt and officially founded L'Auto-Neige Bombardier Limitée the following year.

During the Second World War, the firm redirected its efforts toward the arms sector due to government-imposed restrictions on snowmobile production. After the war, sales diminished following Quebec’s 1948 mandate requiring cleared roads during winter. To adapt, Bombardier began manufacturing tracked snowplows for municipal applications and developed all-terrain vehicles tailored for industries such as mining, petroleum extraction, and forestry. These vehicles were designed with interchangeable front skis or wheels and transitioned from wooden to steel constructions powered by Chrysler engines.

The 1950s witnessed Bombardier’s creation of a lightweight snowmobile equipped with a robust one-piece molded rubber continuous track. The introduction of the 1958 "Ski-Doo" model ignited a new winter recreational activity, with sales soaring from 225 units to over 8,000 within four years. To maintain equilibrium among its product offerings, the company tempered Ski-Doo promotions while preserving its market dominance against competitors like Polaris Industries and Arctic Cat.

Expansion continued through the 1960s with Roski producing composite components and the debut of V-8 engines. Following the death of founder J. Armand Bombardier in 1964, leadership passed to his sons and sons-in-law, with Laurent Beaudoin assuming the presidency in 1966 and serving until 1999. Under Beaudoin’s guidance, operations were decentralized, computer systems integrated, distribution channels broadened, and sales incentive programs introduced.

The company was renamed Bombardier Limited in 1967 and became renowned for supplying snowmobiles essential to Inuit communities. In 1968, it acquired licensing rights to Clayton Jacobson II’s jet ski patents to launch the Sea-Doo personal watercraft line. Bombardier went public in January 1969 on both the Montreal and Toronto stock exchanges.

Between 1969 and 1970, design enhancements included larger windows and upgraded Chrysler Industrial engines paired with automatic transmissions. In 1970, Bombardier purchased Austrian engine manufacturer Rotax and acquired Moto-Ski in 1971. That same year marked the initiation of Operation SnoPlan aimed at promoting snowmobile safety amid increasing accident rates.

Throughout the 1970s, Bombardier further diversified by producing Can-Am motorcycles powered by Rotax engines. In 2003, Bombardier Recreational Products was sold for $875 million to investors including Bain Capital (50%), the Bombardier family (35%), and Caisse de dépôt et placement du Québec (15%).

Further reading

• Hadekel, Peter. Silent Partners: Taxpayers and the Bankrolling of Bombardier. Toronto: Key Porter Books Limited, 2004. .
• MacDonald, Larry. The Bombardier Story: Planes, Trains and Snowmobiles. Toronto: J. Wiley & Sons, 2001. .

External links

• Bombardier Inc. Corporate Reports – McGill University Library and Archives