Bombardier is a Canadian designer and manufacturer of business jets founded in 1942 and headquartered in Montreal, Canada. It has a fleet of approximately 5,000 aircraft in service and employs around 18,000 people worldwide.
You joined Bombardier during a time of great uncertainty at the very start of the Covid pandemic. Can you walk us through how you adapted to the challenges it presented and shifted the company’s focus in response?
When my appointment was announced in March 2020, it was a very unique situation. The Prime Minister announced the closure of all schools the same day and on April 6th (my first official day) my CFO walked into the office and explained that all 49 of our facilities worldwide were closed; it was like a ghost town. Bombardier was a conglomerate with various divisions so we had to pivot quickly and adapt by divesting non-core businesses and focusing on our core competencies in business aviation - we sold our regional jet CRJ business, the train business, and one of our sites in Belfast, which allowed us to streamline operations. Interestingly, by July 2020, demand for private jets soared unexpectedly to record levels, particularly in the U.S., driven by people seeking safer travel alternatives and more wealth globally.
This boost led to record sales and utilization of fleet operators who saw an increase in flying hours by 50% compared to 2019. We decided to focus on medium and large aircraft. In 2021, our FTV5 ‘The Masterpiece’ became the first business jet to break the sound barrier when it went supersonic in repeated test flights with a NASA F-18 chase plane. Our flight test team conducted tests as part of the introduction of new models like the Global 8000 - the world’s fastest business jet ever conceived with a top speed of Mach 0.94, which will outperform its predecessors in speed and range. Our decision to stop producing Learjet and focus on larger segments has paid off, as these segments have shown the most growth.
Canada is known as a world leader in the production and use of renewable energies. Given this standard of innovation, why is the country lagging in green technologies like SAF production compared with places like the US, China, and Singapore?
It is very surprising, especially since clean electricity is crucial for SAF production. What I like about SAF is that it is possible today. Canada has the potential to lead in this space due to its clean energy resources, but the issue lies in the willingness to invest. Aviation accounts for only 2% of emissions, which might seem small, but concerted efforts could make a significant impact. If more stakeholders, including governments and oil companies, focused on increasing SAF production, we could see substantial emission reductions.
Despite the slow uptake in Canada, Bombardier is pushing ahead with SAF integration. We're using 30% SAF in our flights, significantly cutting emissions by 25% which we are very proud of. The broader challenge is scaling up production and distribution to make SAF less expensive and scarce. In North America, a few places are producing significant volume, but it’s less than 0.5% of all fuel being burned. If SAF could be available everywhere, we could reduce emissions by almost 100% overnight.
You have been vocal about Bombardier’s ambition to be an industry leader in greener technologies, having committed 50% of the budget to sustainable research and development. Where exactly is this investment being channelled?
We've dramatically reduced fuel consumption by nearly half, and are investing heavily in innovations like the EcoJet. The EcoJet project is revolutionary in that it has essentially redesigned the basic architectural design and shape of the aircraft through a combination of aerodynamics, propulsion, and other enhancements.
From an aerodynamic perspective, the consequence of generating more lift is reduced drag which in turn means less fuel consumption. So far, our tests are very promising, indicating a potential 20% reduction in emissions as a result. We have a drone with an 18-foot wingspan - which used to be 3-foot - and are currently testing these designs secretly in Canada, showing good results.
In addition to this, we're collaborating with engine OEMs to develop more efficient engines, which is crucial for long-term emission reductions. Our partnership with GE on the Global 7500's engine showcases how tailored engine design can enhance aircraft performance and efficiency, contributing to our sustainability goals.
You stated that labour shortages are among Bombardier’s greatest challenges, further exacerbated by ongoing worker unionization and strike action. Given the competition for talent in Quebec, how are you better positioning yourself as ‘an employer of choice’?
We've grown our workforce by 5,000 over the last three years, reaching 18,000 employees which includes expanding our facilities in Canada, Mexico, and the U.S. Our demography indicates a significant number of retirements in the next decade, so we're focused on creating jobs for new graduates and investing in training and development to ensure we have skilled technicians and engineers, anticipating industry growth.
Despite the challenging economic environment, we're committed to supporting our employees, understanding their needs, and negotiating fair agreements. Our focus is on creating a supportive work environment, ensuring our workforce is equipped to handle the increasing demands of the aviation industry. We also work closely with universities to attract top talent and offer real job opportunities after graduation.
How does Bombardier plan to diversify its offering to accommodate the future evolution and demands of the market over the next five years?
I'm excited about Bombardier's future, especially our potential to significantly reduce emissions and improve travel comfort and safety by developing new technologies and improving our existing aircraft. This ensures we meet the evolving needs of our customers while contributing to a better environment.
We're also expanding our services and entering the defense sector. Our aircraft, such as the Global and Challenger models, are being adapted for military use, primarily for surveillance and communication rather than combat. This diversification provides new growth opportunities and allows us to contribute to national security while maintaining our commitment to sustainability.
