Saturday, January 13, 2018

Airbus Attacks Boeing’s Flank With Bombardier

It was noted Airbus bought control of Bombardier C300 project for a song. It was an obvious ploy to make Boeing flinch and become infuriated. Mission accomplished. The Bombardier product will go forward nipping at the 737 heels. Hence the subsidized deal with Delta. Boeing parries the move by calling “foul” to US Trade governance and quickly a 220% tariff. The counter move is an Airbus buy out of Bombardier C series.

Meanwhile back at the Seattle Stud farm. Boeing decides on what kind of hard ball it will now play against Airbus. Embraer comes to its collective mind in a New York minute. First an Embraer buyout must be accomplished! It’s the only airline manufacturer available with a respected 100 seat model. Boeing will have to pay more than Airbus did with its flanking move. The Brazilian airline has more negotiation work with the clock ticking and many Boeing projects are hanging for the plucking. Airbus caught Boeing as a crucial moment which Boeing probably already had considered as a possibility but hoped it wouldn’t come true.

The war heats up. Back in 1863 at Gettysburg, a massive battle took place during the American civil war. The "South" lost its swagger among the thousands killed in action. But not before some flanking moves occurred. Barlow’s Knoll, Culp’s Hill, Seminary Ridge, and Little Round Top to name a few. 

Little Round Top Flanking Turned the Battle for The Union.
Image result for gettysburg little round top

The battle raged on for three days annihilating troops and battle strength. The South could not ever replenish after the fight and held on for two more years until capitulating from being out of gas. Those who had the most, won that bitter war. The South was just beaten down into a submissive position for which it could not recover. General Lee was a southern leader who signed off at Appomattox because there was no other conclusion.

This is where the airplane wars have spread. The battle is for the single aisle under 130 seats. A flanking move by Airbus with Bombardier has caused Boeing to cover itself with an Embraer attempt. If Boeing becomes successful with an Embraer acquisition, it will have to have a mutual strengthening move by both makers. It appears Boeing will take on Embraer engineers for its own 797 project. It mutually will strengthen the Brazilian maker going into Asian markets and other world market with the Embraer as Boeing would have a family of aircraft landing at airports from Boise Idaho to London-Heathrow. 

The flight deck on the Embraer would become Boeing's, matching all its other aircraft deck’s layout. It would become a punch in the Airbus gut (flanking). After-all, that’s the desired affect by Boeing after Airbus stole the C-series away by just a traffic jam away from the New York State ferry system.

Isn’t Dorval Ca. kind of a commuter ride from Ottawa, Canada’s capital? Isn’t it coincidental that a government subsidy doesn’t have far to go from Ottawa to Dorval? Boeing knows Airbus resources would make a competitive Bombardier aircraft. Boeing also knows Boeing resources would make Embraer a world player. That brings us all back to “old school” and the flanking move. Boeing will own a chunk of Embraer after “everyone” gets what it wants out of such a proposition. 

The Brazilian/US government will get something and both Boeing and Embraer get a stake. The workers will get more work of course. The deal will happened by year’s end. Airbus is flanked and that’s the whole point. 

The outcome will come at the end of “day three” of the Gettysburg’s field of war.

Its not only an Airbus choice, it is its only choice. Greyhound bus company Ca. uses its government subsidy for carrying a packet down the road containing a Bombardier subsidy. Canadian aspirations has a plan but its not polite.