Bombardier Aviation

Origins and expansion through acquisition

In 1986, the company acquired the state-owned manufacturer Canadair from the Government of Canada and successfully restored it to profitability. This was followed by the purchase of the near-bankrupt Short Brothers in Belfast, Northern Ireland, in 1989. The following year, Bombardier entered the business jet market by acquiring the bankrupt American company Learjet, headquartered in Wichita, Kansas. The acquisition spree concluded in 1992 with the purchase of the money-losing de Havilland Aircraft of Canada from Boeing. The combined cost for Canadair, Learjet, and Short Brothers was US$215 million, and they generated revenues of US$1.3 billion by 1990. This aggressive consolidation transformed Bombardier into a major aerospace player with a diverse portfolio spanning regional airliners, business jets, and specialized aircraft like the Canadair water bomber.

These acquired companies formed the core of what was initially called Bombardier Aerospace, which quickly became the largest revenue generator for its parent corporation. The division operated manufacturing plants across 27 countries at its peak, employing over 70,000 workers worldwide. The product lineup included the Dash 8 Series 400 turboprop, the CRJ100/200/440 and CRJ700/900/1000 regional jet families, the Challenger and Global Express business jets, and the Bombardier 415 amphibious water-bomber. The integration of these various entities allowed Bombardier to compete in multiple segments of the aviation market simultaneously, from small commuter planes to long-range corporate aircraft.

Portfolio peak and the CSeries gamble

By the start of the 2010s, Bombardier Aerospace accounted for over half of its parent company's revenue. Its commercial aircraft lines, including the Dash 8 Q400 turboprop and the CRJ series of regional jets, were popular with airlines worldwide. However, the company was devoting most of its research and development budget to an ambitious new project, the CSeries, a family of 110 to 150-seat narrowbody jets. Bombardier claimed the CSeries would burn 20 percent less fuel per trip than competing aircraft from Airbus and Boeing, specifically the Airbus A318/A319 and the Boeing 737-600/700. The company further asserted this would make it about 8 percent more fuel efficient than the newer Boeing 737 MAX introduced in 2017.

The program launched with a letter of intent from Lufthansa for up to 60 aircraft in 2008, and the Montreal manufacturing complex was redeveloped to incorporate lean manufacturing for its production. The development was exceptionally costly and fraught with delays, leading to massive financial write-downs. By late 2015, the program had cost US$5.4 billion, including a US$3.2 billion writeoff, and the company's debt had ballooned to approximately $9 billion largely due to the CSeries. The firm had recorded no firm orders since September 2014, and by December 2015 it had only 243 firm orders alongside letters of intent for another 360. The CS100 received its initial type certification from Transport Canada on 18 December 2015, with the first delivery to Swiss International Air Lines occurring in June 2016.

Major orders finally materialized in 2016, beginning with Air Canada's commitment for up to 75 of the larger CS300 variant in February. This was followed in April by a landmark order from Delta Air Lines for 75 CS100 models with 50 options, a deal valued at up to US$5.6 billion at list price but believed to involve a significant discount. Analyst David Tyerman of Canaccord Genuity questioned how profitable the next CSeries order would be, noting the difficulty of winning sales. An aviation consultant estimated the first 15 aircraft built in 2016 each cost $60 million to produce but would sell for only $30 million, highlighting the program's severe financial challenges.

Financial crisis and government support

The immense financial strain of the CSeries program pushed Bombardier to the brink and triggered a series of government bailouts. In October 2015, the Quebec government announced a US$1 billion investment, acquiring a 49.5 percent interest in the CSeries program to protect jobs. The company also sought a matching $1 billion loan from the federal government. After negotiations, the federal government under Prime Minister Justin Trudeau agreed in February 2017 to provide $372.5 million in interest-free repayable loans, with one third intended for the CSeries and the rest for the Global 7000 business jet program. These interventions were controversial, with critics labelling them corporate welfare, but proponents argued they were necessary to preserve a high-value manufacturing sector and tens of thousands of jobs.

The financial turmoil led to severe workforce reductions and corporate restructuring. In January 2014, 1,700 employees were cut due to a 19 percent drop in orders the previous year. A larger reorganization in July 2014 split Bombardier Aerospace into three divisions and cut 1,800 jobs. By the end of 2014, the employee count had reduced by 3,700. The situation worsened in 2015 with the cancellation of the Learjet 85 program, resulting in a US$1.2 billion writedown and the loss of 64 orders. In February 2016, the company announced 7,000 more job cuts. The federal aid negotiations in 2016 reportedly included a condition that Bombardier end its dual-class share structure, which allowed the Bombardier and Beaudoin families to maintain control with a minority ownership, a condition that caused a standstill in talks.

International trade disputes

Bombardier's commercial aircraft ambitions ignited major international trade conflicts. A long-running dispute with Brazil over subsidies to Embraer dated back to the late 1990s and early 2000s, with the World Trade Organization ruling both countries had run illegal subsidy programs. A more immediate crisis erupted in 2017 after Delta Air Lines ordered 75 CSeries CS100 jets. Competitor Boeing filed a petition alleging Bombardier was dumping aircraft at $19.6 million each, below their alleged $33.2 million production cost. The United States Department of Commerce preliminarily imposed combined duties of 300 percent on the CSeries, citing a 220 percent subsidy allegation and an 80 percent anti-dumping duty.

This tariff threat indirectly forced Bombardier's hand. In October 2017, the company relinquished a 50.01 percent majority stake in the CSeries program to Airbus for a symbolic one dollar. This partnership, which included establishing a US assembly line in Alabama, was designed to circumvent the tariffs. Airbus did not pay for its share nor assume any debt. The deal required production to remain in Quebec until at least 2041. The US International Trade Commission ultimately overturned the duties in a unanimous vote in January 2018, finding the US industry was no longer threatened. Canada had formally filed a complaint with the WTO against the United States over the duties just days before this reversal. Boeing declined to appeal the ruling in March 2018.

Strategic divestment and refocus

Facing persistent financial pressure, Bombardier began a radical transformation to exit the commercial aircraft business entirely and refocus as a pure-play business jet manufacturer. This divestment process started in November 2018 with the sale of the Q400 turboprop program and the de Havilland brand to Viking Air's parent company, Longview Aviation Capital Corp., for $300 million. The deal closed in June 2019, transferring an order book of 51 Q400s to the newly formed De Havilland Aircraft of Canada Limited. In late 2018, Bombardier also sold its business jet training program to CAE Inc. for $645 million and announced 5,000 job cuts globally over 18 months.

In June 2019, Bombardier agreed to sell its CRJ regional jet program to Mitsubishi Heavy Industries, a deal that closed in June 2020. Mitsubishi gained the type certificates, service centres, and Bombardier's expertise to support its own SpaceJet programme. Bombardier retained the Mirabel assembly facility to produce CRJs until the order backlog was complete. Most significantly, in February 2020, Bombardier sold its remaining 31 percent share in the Airbus Canada Limited Partnership, the holding company for the A220 program formerly known as the CSeries, for $591 million, leaving Airbus with a 75 percent stake. The company also sold its aerostructures activities in Northern Ireland, Morocco, and Dallas to Spirit AeroSystems, with that transaction closing in October 2020 after a last-minute amendment to the terms.

Following these sales, the aerospace division was renamed Bombardier Aviation in May 2019. The company's strategic shift anticipated business jet shipments increasing from 135 in 2018 to 150 to 155 in 2019, with revenues forecast to rise from $16.5 billion in 2018 to over $20 billion in 2020. The large Global 7500 was expected to be a primary driver of cash flow. Business Aircraft revenues were projected to grow from $5 billion in 2018 to $8.5 billion in 2020, while commercial airliner revenues were expected to shrink and eventually disappear.

Bombardier Aviation today

The modern Bombardier Aviation is a streamlined entity focused solely on the design, manufacture, and support of business jets. Its portfolio consists of the Challenger series, known for its versatility and efficiency, and the flagship Global series, which includes long-range models like the Global 7500 and the newly introduced Global 8000. The company maintains its headquarters and key manufacturing sites in Quebec, but also has significant operations in Wichita, Kansas, for the Challenger series and completions for Global aircraft. In 2026, the company projected higher revenues and deliveries, anticipating over 157 aircraft deliveries for the year.

It continues to invest in site capabilities, such as growing its operations in Kansas, and participates in major industry events like the Farnborough Airshow. The Global 8000 flagship jet made its flying display debut at the Farnborough Airshow in 2026. The company's guidance for 2026 indicated strong profit levels were expected to continue, though analysts noted profit margins might plateau. Bombardier also considers investments and mergers and acquisitions to boost jet output and support its growth trajectory in the business aviation sector.

Workforce and economic impact

Bombardier's workforce has fluctuated dramatically with its changing fortunes. At its peak, the aerospace division operated plants in 27 countries and employed over 70,000 workers globally. The financial crises of the mid-2010s led to deep cuts, including 7,000 job losses announced in 2016 and another 5,000 cuts announced in late 2018 across its worldwide operations, with 500 in Ontario, 2,500 in Quebec, and 2,000 outside Canada. The divestment of commercial aircraft lines further reduced its employee base.

Despite this downsizing, Bombardier Aviation remains a significant employer in Quebec and Ontario, and its business jet operations support an extensive supply chain. The company's export of aircraft has contributed billions of dollars to the Canadian economy over the decades, cementing its role as a pillar of the nation's advanced manufacturing sector. In the five years leading up to 2016, Bombardier's aerospace exports totalled $34.2 billion. The potential loss of these exports and the tens of thousands of associated jobs was a primary argument used by proponents of government financial support during the company's most difficult period.

Questions about Bombardier Aviation

What does Bombardier Aviation make now?

Bombardier Aviation now exclusively manufactures business jets. Its current product lines are the Challenger series and the Global series. The company has completely exited the commercial airliner market, having sold off its Q400 turboprop, CRJ regional jet, and CSeries (now Airbus A220) programs between 2018 and 2020. It no longer produces the Learjet, having cancelled the Learjet 85 program in 2015.

Why did the Canadian government bail out Bombardier?

The Canadian government provided financial support to Bombardier, primarily for the CSeries program, to protect high-value manufacturing jobs and preserve a key aerospace exporter. In 2017, the federal government issued $372.5 million in interest-free repayable loans, following a $1 billion investment from the Quebec government in 2015. Officials argued that the company's potential bankruptcy would have resulted in the loss of tens of thousands of jobs and significant export revenue, though the bailouts were criticized as corporate welfare. An independent economist questioned whether the loans would ever be repaid.

What happened to the Bombardier CSeries?

The Bombardier CSeries was a family of narrowbody airliners that became a major financial burden due to development costs and delays. In 2017, facing crippling US tariffs, Bombardier gave a majority stake in the program to Airbus. Airbus rebranded it as the A220 and took a 50.01 percent share without payment. Bombardier later sold its remaining 31 percent share in the A220 program in 2020 for $591 million, severing its final tie to the aircraft it originally created. A second assembly line was established at an Airbus factory in Alabama, USA.

Where are Bombardier business jets built?

Bombardier business jets are built primarily in Canada. The company's headquarters and major manufacturing facilities for the Global series are in the Greater Montreal area of Quebec. The Challenger series is manufactured in Wichita, Kansas, USA, which is also a key site for aircraft completions and interior outfitting for the Global family. The company has solidified its commitment to Kansas by growing site capabilities, as noted in 2026.

Did Bombardier sell the CRJ program?

Yes, Bombardier sold its CRJ regional jet program to Mitsubishi Heavy Industries. The deal was announced in June 2019 and closed on 1 June 2020. Mitsubishi gained the type certificates, service centres, and Bombardier's global expertise in engineering and customer support. Bombardier retained the Mirabel assembly facility to complete the existing order backlog on behalf of the new owner. The CRJ-related service activities were transferred to a new Montreal-based company called MHI RJ Aviation Group.

What is Bombardier's financial outlook for 2026?

For 2026, Bombardier projected higher revenues and an increase in private jet deliveries. The company anticipated delivering more than 157 aircraft for the year. It also indicated that strong profits were expected to continue, though profit margins might plateau. The company continues to invest in growing its site capabilities, such as in Kansas, to support this output. It reports financial results quarterly, with third quarter 2026 results scheduled for release on 5 November 2026.

Sources: Wikipedia and current public reporting, checked by the Yadude Books desk. Last updated 2026-10-22.