Bombardier Inc.

Founding and the Snowmobile Revolution

The company's origins trace back to Joseph-Armand Bombardier, a mechanic from Valcourt, Quebec, whose work was motivated by a personal tragedy in 1934 when his son died after a blizzard prevented travel to a hospital. He dedicated himself to building a vehicle that could travel over snow, succeeding in 1935 with a prototype that used a novel sprocket wheel and rubber track system. He patented this invention and sold his first multi-passenger B7 snow coaches in 1937, which became vital for transport in rural Quebec. The formal company, L'Auto-Neige Bombardier Limitée, was incorporated in 1942. During the Second World War, the company shifted to military production under government rationing rules that restricted civilian snowmobile sales. A post-war law in Quebec requiring road snow clearing caused a sharp drop in sales, forcing the company to diversify into tracked snowplows and all-terrain vehicles for industrial use.

In the 1950s, Bombardier concentrated on developing a smaller, personal snowmobile. A major technical advance came in 1957 with the creation of a one-piece molded rubber continuous track durable enough for lightweight vehicles. The intended name for this new machine was the Ski-Dog, but a painter's error resulted in the name Ski-Doo being applied to the first prototype. The Ski-Doo created an entirely new winter recreational market centred in Quebec, with sales skyrocketing from 225 units in the first year to over 8,000 four years later. The company deliberately slowed promotion of the Ski-Doo to avoid it overshadowing its other industrial products, even as it competed with new rivals like Polaris Industries and Arctic Cat. Joseph-Armand Bombardier died in 1964, and leadership passed to his son-in-law, Laurent Beaudoin, who had joined as controller in 1963 and would guide the company for decades.

Strategic Diversification into Mass Transit

The 1970s energy crisis reduced demand for snowmobiles, prompting Bombardier to seek new industrial avenues. Its entry into rail transport began in 1974 with an order to build MR-73 trains for the Montreal Metro. This was followed by the acquisition of Montreal Locomotive Works in 1975, though this locomotive business was later sold to General Electric in 1988. Bombardier's strategy focused on passenger rolling stock, winning a major $663 million contract in 1982 to build 825 R62A subway cars for the New York City Subway. Through the 1980s and 1990s, the company grew its rail division via a series of strategic acquisitions in Europe and the United States. It purchased a stake in Belgium's La Brugeoise et Nivelles in 1986, the assets of the Budd and Pullman companies in the US in 1987, and France's ANF Industrie in 1989. In 1996, Bombardier was selected as the lead developer for Amtrak's Acela Express, North America's fastest train, in a $710 million contract that was later marred by technical problems and lawsuits. The rail division expanded dramatically with the 2001 purchase of Adtranz from DaimlerChrysler, making Bombardier one of the world's largest train manufacturers, producing everything from regional trains like the Turbostar to high-speed Zefiro trains for the Chinese market.

Building an Aerospace Conglomerate through Acquisition

Bombardier's move into aerospace was executed through the purchase of struggling, government owned aircraft manufacturers. The first major acquisition was Canadair, bought from the Government of Canada for $120 million in 1986 after it had recorded the largest corporate loss in Canadian history. This was followed by the purchase of Short Brothers in 1989, Learjet in 1990, and de Havilland Canada from Boeing in 1992. These acquisitions gave Bombardier a full portfolio of regional jets, turboprops, and business aircraft. The company also founded the fractional ownership programme Flexjet in 1995, which it later sold in 2013. This period of aggressive growth, funded largely by buying assets at low prices and turning them around, made Bombardier Canada's most important aerospace manufacturer and a major multinational corporation. The company's growth was so rapid that its turnover multiplied sixfold within six years at the end of the 1980s, a time when it was also North America's leading producer of railway vehicles and the world's leading snowmobile maker.

The CSeries Programme and Financial Crisis

The programme's high costs and delays accumulated massive debt, pushing the company to the edge of bankruptcy by 2015. The crisis deepened in September 2017 when the United States Department of Commerce, acting on a complaint from Boeing, proposed a 219 percent tariff on CSeries aircraft imported to the US. Boeing alleged Bombardier was selling the CS100 to Delta Air Lines for $19.6 million each, below the $33.2 million production cost, thanks to subsidies from the Canadian and Quebec governments. In response, the governments of Canada and the United Kingdom threatened to cancel Boeing orders. The US International Trade Commission overturned the proposed tariffs in January 2018, but the damage to the programme's commercial viability was severe. To secure the aircraft's future, Bombardier entered a partnership with Airbus in July 2018, transferring a 50.01 percent stake in the CSeries programme to Airbus for one Canadian dollar. Airbus took full ownership by 2024, renaming the jet the A220 and establishing a second assembly line in Mobile, Alabama.

Divestiture and Turnaround to a Pure Business Jet Company

The CSeries crisis triggered a complete strategic overhaul, with Bombardier deciding to sell nearly all operations outside of business jet manufacturing. This multi year divestiture process began in November 2018 with the sale of its turboprop aircraft unit to Viking Air and the announcement of 5,000 layoffs. In March 2019, it sold its Business Aircraft Training unit, including flight simulators, to CAE Inc. for $645 million. The CRJ regional jet programme was sold to Mitsubishi Heavy Industries in a deal closed in 2020, though Bombardier retained the Mirabel assembly facility to complete the existing order backlog. Its aerostructures division, with operations in Belfast, Casablanca, and Dallas, was sold to Spirit AeroSystems in a deal renegotiated during the pandemic and concluded in October 2020. The most significant divestiture was the sale of the entire Bombardier Transportation rail division to Alstom, agreed in February 2020 for approximately €7 billion and completed on January 29, 2021. Company statements described these sales as supporting its strategic decision to reposition as a pure play business aircraft company, a transformation finalized when Airbus acquired Bombardier's remaining stake in the A220 in February 2020.

Current Product Portfolio and Market Position

Today, Bombardier's business is built around two core families of corporate jets. The Global 7500 set a historic mark in May 2021 when a test aircraft became the first business jet to break the sound barrier, achieving the fastest speed for a civil aircraft since the Concorde. The company supports these aircraft through a global network of service centres, such as its facility at Biggin Hill in England. Financially, the turnaround has shown results, with the company reporting 138 business jet deliveries in 2023, making it the world's number one manufacturer in the sector. For the second quarter of 2026, it reported revenues of $2.15 billion, 32 aircraft deliveries, and a record backlog of $21.8 billion. The company continues to invest in its industrial footprint, announcing a $100 million investment to expand its manufacturing capabilities.

Historical Divisions and Corporate Evolution

Beyond its core aerospace and rail history, Bombardier operated several other significant business lines that have since been sold or closed. Bombardier Capital was formed in 1973 in Colchester, Vermont, to provide inventory financing for dealers of Ski Doo and Sea Doo products, later expanding into loans and leasing for business aircraft and other equipment. It ceased loan originations in 2001 and sold its inventory finance division to GE Commercial Finance in 2005. The company had a brief involvement in military products, acquiring the rights to the Volkswagen Iltis light vehicle in 1981 and producing military trucks through its UTDC acquisition in 1991, before selling its arms division in 2003. In Ireland, Bombardier partnered with General Automotive Corporation in the early 1980s to assemble double decker buses and coaches for CIÉ, selling its share in the venture by 1983. The most significant historical spin off was Bombardier Recreational Products, the originator of the Ski Doo and Sea Doo brands, which was sold to a consortium including Bain Capital and the Bombardier family in 2003 for $875 million, becoming a completely separate entity.

Questions about Bombardier Inc.

What does Bombardier make now?

Bombardier now designs, builds, and maintains business jets exclusively. Its current product lines are the Challenger series and the Global series of corporate aircraft. The company sold off all its other divisions, including train manufacturing and commercial airliners, as part of a major restructuring to become a pure-play business aircraft company. It focuses on the high-end market for private and corporate aviation.

What happened to the Bombardier CSeries?

The Bombardier CSeries, a new narrow-body passenger jet, faced severe financial difficulties due to development costs. In 2018, Bombardier entered a partnership with Airbus, giving Airbus a majority stake for a symbolic one dollar. Airbus took full control by 2020, renaming the aircraft the Airbus A220. This move effectively ended Bombardier's involvement in the commercial airliner business and was a key step in its strategic refocusing.

Did Bombardier sell its train business?

Yes, Bombardier completely exited the rail transportation business. In February 2020, it agreed to sell its Bombardier Transportation division to the French company Alstom for approximately €7 billion. The acquisition was finalized on January 29, 2021. This sale marked the end of Bombardier's nearly five-decade involvement in manufacturing passenger trains, subway cars, and rail equipment worldwide.

What is Bombardier's most advanced jet?

Bombardier's most advanced jet is the Global 7500/8000 series, part of its flagship Global family. These aircraft are ultra-long-range business jets capable of intercontinental travel. In a notable feat, a Global 7500 test aircraft became the first business jet to break the sound barrier in May 2021, making it the fastest civil aircraft since the Concorde. The series is known for its advanced aerodynamics, sophisticated cabin technology, and peak performance.

How is Bombardier performing financially after its turnaround?

Bombardier has reported a strong financial recovery following its restructuring. The company exceeded all its guidance metrics for 2025 and set higher targets for 2026, expecting increased revenue and more aircraft deliveries. For the second quarter of 2026, it reported revenues of $2.15 billion and a substantial order backlog of $21.8 billion. Management has highlighted a sharp increase in free cash flow as evidence of a successful turnaround and a sustainable business model focused on high-end business jets.

Sources: Wikipedia and current public reporting, checked by the Yadude Books desk. Last updated 2026-10-19.