Discussion posted by: Arye ben-Shaoul
With the sale of its rail unit, the Canadian company has gambled on its private jet business for survival. Why is Bombardier betting it all on a mode of travel that is constantly disparaged by climate change activists? Bombardier is selling its rail business to French train manufacturer Alstom for as much as €6.2 billion ($6.7 billion) as it seeks to cut its massive debt load following years of pumping cash into its aviation units. The sale means Bombardier — which quit commercial aviation earlier this month after selling its remaining stake in the A220 jet program to Airbus — is betting everything on its private jet business for future growth, thereby exposing itself not only to the vagaries of the cyclical nature of the corporate jet market but also to a possible fall in demand resulting from climate-related flight shaming.