Bombardier CEO Shows Concern Over Boeing Securing Canada's Defense Contract

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  • Bombardier Inc’s BDRBF Chief Executive Eric Martel raised his concerns over Canada’s potential plan to buy reconnaissance jets directly from Boeing Co BA instead of considering the homegrown aerospace industry.
  • “As President and CEO of Bombardier, I want to publicly share my concern that Canada, which is facing an important choice about the airborne surveillance of its vast borders, may be considering awarding a sole-source contract directly to Boeing,” Reuters reported.
  • Martel’s comments come after a recent media report that Canada was considering the proposal to buy between eight and 12 units of P-8 Poseidon aircraft from Boeing.
  • Martel pushed for Bombardier’s jets, saying the Canadian planemaker’s Global 6500 aircraft “will be the right-sized solution and respond to Canada’s needs.”
  • Earlier this year, Boeing announced that it would take part in any competition to replace the Royal Canadian Air Force’s existing and aging fleet of CP-140 Aurora aircraft. The program is expected to cost more than $5 billion.
  • Price Action: BA shares are down 1.07% at $193.90 during the premarket session on the last check Thursday.
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