Why Are Airbus and Boeing Afraid of Bombardier?
Airbus has certainly expressed its standpoint on not making a similar mistake Boeing has made when Airbus penetrated the same market. Boeing also being protective of their market share is correspondingly going towards the same direction. Boeing has already previous attempts to prevent Bombardier discussing future potential business with any existing client in the market. This was confirmed by CEO of Boeing Commercial Airplanes when he stated that their first deal in January with United was planned to be a resistance to any Bombardier talks with one of their most valuable clients, United Airlines.
There are many reasons why two major companies in the industry would be threatened by this kind of competition from a smaller company in Canada. To begin with, the C Series has now access to all narrow body routes, which includes smaller routes where it’s only accessible to a right size aircraft. Not only this, the C series has offered a more enhanced interior with latest in cabin design technology and with less but wider and more comfortable seats. As for their edge in engine technology and fuel efficiency, the C series has more modern materials and enhanced aerodynamics and was designed for new technology engines. These are all factors that would greatly affect operational costs for aircrafts in terms of fuel consumption and maintenance budgets compared to Boeing’s 737MAX7 and Airbus’ A319neo.
Bombardier Aerospace seems to be not the only one penetrating the same market, since Embraer has also recently of stretching their existing jets to around 100-130 seat class. This will definitely make Boeing and Airbus Industries think more strategically on their future projects to be able to sustain an edge in this existing rivalry. Having that said, Embrarer’s E2 jets has more challenges to face to be suitable for more seats and won’t be as convenient as Bombardier’s capabilities with the C series to participate in that race.
Airlines across the globe would certainly be welcoming new players to the market where everyone is competing to offer more quality to their customers and off course reduce operational costs.