Fokker vs Bombardier

8/10/2019 Fokker vs Bombardier

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FOKKER

Mission

With distinctive integrator solutions, featuring sophisticated technologies, we support our

customers world-wide in excellence in designing, building and operating smart, safe,

sustainable and affordable aircraft.

Vision

Aircrafting is a word that perfectly states our vision.

We work to continuously provide our customers with the right state-ofthe-

art technologies and more efficient processes to help them achieve

their specific goals. That means we apply our collective expertise to

achieve efficiencies and economies of scale. Drawing from each of our five

businesses, we help our customers design, build and fly aircraft that are

safer, more affordable and more efficient.

Aircrafting is about using our built-in sense of what needs to be done and

knowing how best to do it.

Aircrafting reflects the Fokker commitment to strengthening its role as an active, innovative

leader in the aerospace industry.

Visi Fokker aerostructure: The art of flying: We help our customers to design, build and fly safer,

affordable and greener aircraft by delivering aerostructures, structural components and landing

gears using state of the art technologies.

Pangsa pasar:

Penerbangan sipil, penerbangan antar Negara, penerbangan antar daerah

Segmen pasar: penerbangan rute pendek dan menengah

Kutipan:

Pemain lama di kancah industri pesawat terbang yang berhenti beroperasi pada tahun 1996,

Fokker, kembali menunjukkan tanda-tanda kehidupan. Momen ini ditandai dengan usaha

Netherlands Aircraft Company untuk mendapatkan pasokan suplai serta juga membangun

kekuatan finansial melalui kemitraan demi terwujudnya program pesawat baru yang berangkatdari desain varian Fokker F100, yakni Fokker F120NG. Pesawat F120NG akan berkompetisi

secara langsung dengan Bombardier CSeries dan Embraer E2.

Kami tidak akan memperinci mengenai waktu kemunculannya pada tahap ini, namun

membeberkan sejumlah rincian mengenai program ini menunjukkan bahwa kami memiliki

kepercayaan bahwa sumber dana pasti datang dan setelah itu proyek ini akan membuat


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kemajuan signifikan dalam beberapa bulan ke depan, ujar chief executive Netherlands Aircraft

Company, Maarten Van Eeghen di tengah perhelatan Farnborough Airshow 2014.

Rencananya, Fokker F120NG memiliki 125 hingga 130 kapasitas kursi. Dengan demikian

varian F120NG merupakan pengembangan langsung dari Fokker F100, terutama rangka

pesawat, rentang sayap, penggunaan winglets dan sejumlah pengembangan terhadap profil

sayap, seperti diutarakan Rudi den Hertog, seorang chief engineer program F120NG. Pratt &

Whitneys PurePower PW1X17G akan mentenagai Fokker F120NG dengan daya dorong

sebesar 17,600lb. Mesin tersebut juga merupakan mesin yang sama digunakan oleh Mitsubishi

Regional Jet.

Fokker F120NG dirancang dan dimaksudkan untuk rute pendek hingga menengah baik itu

dalam temperatur panas maupun dingin. Rute pendek hingga menengah merupakan segmen

pasar yang dianggap menghasilkan keuntungan. Beberapa pihak yang tertarik untuk

berinvestasi pada program ini adalah Turkish Airlines, Lufthansa, Qantas, IndiGo dan Virgin

Australia, meskipun belum ada pernyataan resmi dari pihak terkait.

Netherlands Aircraft Company, perusahaan yang sepenuhnya dimiliki oleh Panta Holdings dari

Belanda yang menjalin kemitraan dengan sejumlah maskapai dan perusahaan penyedia jasa

penerbangan, telah berjalan selama satu dekade lebih, namun terkadang maju mundur

sehingga menguak keraguan banyak pihak. Namun satu tahun belakangan menjadi semakin

matang dan menjanjikan. Pada perhelatan Farnborough Airshow 2014, sejumlah pihak terkait

mengadakan diskusi, termasuk dua pihak pemasok perangkat avionika. Diperkirakan, F120NG

dapat mulai beroperasi di layanan komersial pada tahun 2019, hal ini berdasarkan proses

pengembangan selama lima tahun dan sejumlah program uji coba.

Fokker 50; Terbang rendahnya pesawat Foker yang saya naiki justru menjadi kelebihannya.

Bukan semata kelebihan karena saya bisa menikmati pemandangan dibawah sana. Yang lebih

penting dari itu adalah efisiensinya. Dengan pesawat jet yang dituntut berketinggian jelajah

sekitar 10 kilometer, jarak Denpasar Mataram hanya cukup untuk lepas landas, naik pada

ketinggian jelajah, dan beberapa menit kemudian harus segera turun lagi untuk mendarat. Jelas

sekali bahan bakar tersedot dalam volume besar untuk naik dan turun. Tidak untuk terbang

jelajah. Pemborosan. Disinilah peran pesawat berpenggerak baling baling seperti Foker 50

yang saya naiki ketika itu, ATR 72 buatan Prancis yang saat ini dioperasikan oleh Wings Air,

atau MA 60 yang saat ini dioperasikan oleh Merpati.


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BOMBARDIER

Mission statement

Our mission is to be the worlds leading manufacturer of planes and trains.

We are committed to providing superior value and service to our customers and sustained

profitability to our shareholders by investing in our people and products.

We lead through innovation and outstanding product safety, efficiency and performance.

Our standards are high. We define excellenceand we deliver.

Vision

Employees

The engagement of all of our employees is key to our success. By giving our employees wings,

we:

Offer a unique environment where individuals grow as part of multidisciplinary teams

engaged in continuous improvement.

Broaden business acumen, creatively expand limits and pursue professional

development.

Nurture growth, spark engagement and inspire a winning attitude.

Customers

Our customers are the main focus of everything we do. By giving our customers wings, we:

Serve their needs and widen their business horizons with outstanding solutions,

products and services.

Establish trusting relationships by acting proactively and honestly.

Provide an unrivalled total and amazing customer experience, which breeds pride and

loyalty.

Suppliers

Our suppliers are essential to our success. By giving our suppliers wings, we:

Build rewarding partnerships, which allow our respective businesses to prosper.

Establish relationships based on trust and respect.

Secure innovative technology and competitive life cycle costs.Investors and shareholders

We rely on the continued commitment of our shareholders and investors. To give them wings,

we:

Generate value and growth for sustained return on investment.

Lead the business to competitive excellence.


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Optimize company assets.

Communities

In communities where we operate, we give people wings by acting as responsible corporate

citizens. We:

Promote sustainable products and operations as well as integrate sustainable

development principles in our business behaviours.

Provide an exciting and fulfilling source of employment and contribute to economic

growth.

Act as leaders in the communities where we operate.

Core Values

Integrity

We behave with integrity and in an ethical manner in everything we do and say, thereby earning

and maintaining the trust and respect of customers, shareholders, suppliers, colleagues,

partners and communities.

Commitment to excellence

Our commitment is to demonstrate excellence in all spheres of our work and in our interactions

with customers, shareholders, suppliers, colleagues, partners and communities. In addition, we

commit to exercising judgment, professionalism, rigour, self-discipline, perseverance and team

spirit.

Customer orientation

We promote a customer-centred culture that emphasizes outstanding service and meets our

commitments at every level of our organization.

Shareholder focus

We are focused on creating sustainable shareholder value through developing profitable

products and projects, and soundly managing the business for the benefit of customers,

shareholders, suppliers, colleagues, partners and communities.

Internal Environment

In order to correctly assess Bombardier Aerospaces Internal Environment, we have made aSWOT analysis (Strengths, Weaknesses, Opportunities, and Threats).


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Bombardier Aerospace SWOT Analysis

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Bombardier Aerospace, being a division of Bombardier Inc., has the advantage of being part of abrand that manufactures not only aircraft, but also trains and recreational products which areregarded as high quality and technologically-advanced products. This gives BombardierAerospace the advantage of being recognized as a part of a huge and highly respected company.

Furthermore, a lot of people do not actually know that Bombardier Aerospace owns one of themost respected jet companies in the world, Learjet. Its signature jet, the Learjet, has become anicon in culture, representing luxury and innovative technology, class and speed. So whenBombardier acquired Learjet, not only did they acquire the advanced Swiss/Americanintellectual property, they also acquired the brand itself, and all the respect and luxury that comeswith it. So because Bombardier Aerospace owns Learjet, it owns a strong brand inside a nichemarket, one that can be trusted and is synonymous with quality.

Bombardier Aerospace is currently the worlds third largest aerospace company behind Boeingand Airbus, and catching up. Through its constant technological development and research, it hasbeen making state of the art aircraft that consume lesser amounts of fuel and remain just aspowerful. An example can be their C-Series, which experts in the field call a game changer andis expected to be launched by 2013, and the Learjet 85, which features an all-composite airframeas well as technical advances in aerodynamics, structures and fuel efficiency.

Bombardier Aerospaces parent company, Bombardier Inc., is a leading manufacturer in not onlyaircraft, but also trains and recreational products. Seen from a technological point of view, thismeans that Bombardiers engineers have a broader scope of engines and material developments.One may argue that one division has nothing to do with the other, but the brainpower andinnovation of such areas does.


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The aerospace industry was hit quite hard following the recession. Because of rising gas pricesand less consuming power, people didnt fly as much as they should, and more importantly forBombardier Aerospace, couldnt afford themselves the luxury of flying, renting or acquiring

high-end personal aircrafts. For this reason, Bombardier had to lay off around 5,000 employees,over 1,000 of them in the Montral area.

Bombardier reported a 43% drop in its current fourth quarter earnings, falling even a bit lowerthan the stock markets already gloomy forecast. This of course disappoints shareholders, whohave seen their shares values continually decrease since 2008. As mentioned, the recession hastaken a really tough toll on the aerospace industry. Things seem to be about to get better though,and investors are betting large on the future of Bombardier.

Another problem for Bombardier is that it cannot yet fully compete against bigger companieslike Boeing and Airbus, since it produces only business jets at the moment. As it will be

mentioned, they are starting to concentrate on commercial aircraft, but even when they do, thebigger companies are still more diversified, as they manufacture commercial planes that carryway more people.

Bombardier's Stock Quote since 2008

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As mentioned before, Bombardier is investing a lot of money in R&D. They seem to have astrategy along the lines of innovation, as they are heavily investing in new efficient technologieswhich allow them to make aircraft at lower prices and make them more efficient, while stilloperating at high speeds.

They are also setting their sights on producing commercial aircraft, that is, diversifying theiraircraft line, as they already have a long line of business aircraft, their main business. Currentlyin development is Bombardiers commercial C-Series line of jets.

The long awaited C-Series which will be released in 2013 is not only extremely fuel efficient,but it can carry from 100 to 149 people and is a possible competitor to the Boeing 737 andAirbus A319. This makes investors believe in Bombardier even though they are going throughhard times, and experts estimate that the new fleet will be a game-changer for Bombardier. Thisis also pressuring Boeing and Airbus to meet up with the expectations of making the necessary


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technological advances to reduce fuel costs, which costs them more money than they can afford,as their current innovations are already over budget and behind schedule. This leaves themunprotected in the market against smaller companies like Bombardier.

The C-Series offers:

Unsurpassed economics 15% cash operating cost advantage 25% direct maintenance cost savings

Advanced technology 20% less fuel consumption 70% advanced materials

Environmental focus Reduced noise and emissions

20% less Co2 50% less Nox 4 times quieter

Bombardier Aerospace's C-Series

The rise of Bombardier and other small companies also means the of end of Boeing and Airbusduopoly in the market, making it more competitive and possibly meaning that price wars willtake place between the companies.

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Because Bombardier is concentrated in innovating its air fleet and trying to find new ways to befuel efficient, its costs in the Research and Development department are quite high, which meansthat because there is a lot of re-investing, they arent making as much profit in the end. This isboth good and bad, as short-term investors frown upon this decision, but long-term investors areattracted.

As mentioned before, Bombardier is in competition with Boeing and Airbus, two very largecorporations that have a way larger market share. Recently it seems as if Bombardier Aerospacehas unintentionally challenged them based on technology. This means that once Boeing andAirbus finish their projects in development, they will also start investing heavily into the type of

aircraft Bombardier is producing.

In tough financial times, companies must sometimes unfortunately make some pretty toughdecisions, such as laying off workers. This was the exact situation Bombardier found itself in notlong ago, as it reported a huge decrease in earnings. This of course got the employees reallyfrightened over their job security, and got all those employees (and their unions) that were firedreally heated up. So in other words, Bombardiers organizational culture was affected, as peoplewere no longer sure they could trust Bombardier as before.


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In the last couple of years, more small competitors have entered the aerospace market, mostnotably Embraer (from Brazil), Hindustan Aeronautics, or HAL (from India), Avic Aircraft(from China), and the United Aircraft Corporation, or UAC (from Russia). Although thesecompanies arent directly competing with Bombardier yet, they are starting to catch up.

External Environment

Macro Environment:

Every company is affected by the environment in which they operate. There are a lot of eventsthat can abruptly put a company into bankruptcy, but the opposite is also possible if themanagers know whats going on in the society allowing them to make good decision. Thefinancial health of Bombardier is directly link to a lot of factors which are really diversified.

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On the economic side, the interest rates have a big impact on consummation. During the lastyears, the Us had a big recession affecting all the occident. Interest rates were variable puttingthe American companies into financial distress. Inflation has an impact too because its going toaffect if a person will spend rather than saving. Currency rates are another example of importantfactor. Exportation can be affected by the currency, because the buying power of Bombardiersclient will be related to it. For example, Bombardier sold a lot of their product in the US and therest of the world during the last years, and this might be explained by the low value of theCanadian dollar compare to the US $ / Euro. Bombardier has also a good financial health, duringthe last years because the stock price went constantly up. However, a big loss occurred on thelast quarter showing instability.

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Social trend also affected Bombardiers product over the years. The population aging quickly,and the needs and the trends are evolving at the same rates. For example, Bombardier might haveto put a lot of effort on how their planes are comfortable since the older generation are moreaffected by that characteristic. Also, the language used or the configuration wanted might bedifferent depending where the buyer is from. For that reason, Bombardier developed severalproducts to match what the consumer wants, whatever the age, mentality, beliefs or origin. Tomeet their customer needs, they developed classic planes for travellers, but also business,emergencies and personal planes. They also offer rental and products for specific mission.

Bombardier operates in more than 80 countries, and needs to be aware of the social and culturalenvironment to be internationally successful.

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The technological environment surrounding bombardier is a key aspect of their success. Allvehicles produced by Bombardier have to be modern to keep their competitive advantage.Performance, reliability, comfort ability are the characteristic that Bombardier has to work on to


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maintain its reputation. For that reason, Bombardier has to invest in new technology and beaware of any development or change about other rivals product. Research and development isalso vital for any company in that industry.

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Government decisions have also a direct impact on whets Bombardiers doing. During the recentyears, they were several security issues within the airplane industry. September 11

th2001 had a

big impact regarding the security, pushing the government to implement laws and regulation tomake sure that all the passengers will arrive safely to their destination. Bombardier had to makesure that their planes meet the standard, and these changes come with additional cost. Securityproblems have also a major impact on Bombardiers sales. Following the twin tower disaster, theplane industry lived a major recession putting at that moment Bombardier into financial distress.In 2010, the situation is way more interesting for that company, but they have to keep in mindthat security is a big issue, and they have to build planes keeping in mind that the crew will haveto be supported by a complete and safe product.

Five Forces Model

Bombardier operates in an industry where theres a low threats of entry. First, there are already acouple of big firms that supply the market demand so it could be really hard for a new firm tomatch the popularity and the capacity of these firms. They have already a well know brand andpossess a technology that can hardly be developed.

In the Plane industry, there are not a lot of substitutes. Each product has its own utility andcapacity, and its usually the only one offered on the market. For example, theres no apparentsubstitute to the C series (commercial plane) because its the only plane that can travel a long

distance with that much passenger. The only threats for Bombardier will be another plane withthe same specs build by another firm.

Within that industry, the bargaining power of buyers is moderate. Since theres not a lot ofmanufacturer, clients dont have a lot of choice if they want to obtain what they want. However,planes have a really high cost and possibly a good margin, so at some point, a company will tryto be as much competitive as they can to retain their customers.

Suppliers have also moderate power. They often possess a special technology over whichBombardier could be dependant. However, Suppliers dont want to lose their best customer, so ifBombardier is one of the most popular firms in that industry, they will try to maintain their good

relation.

Bombardier has several rivals within the aerospace industry. Well known brand like MitsubishiHeavy Industries, Brazil Empreza Brazileira and Airbus are major competitors and they all fightfor a decent market share. They have to put a lot of effort to keep their customer becausepersonal plane isnt a common purchase. Also, aerospace contract from big airlines companyworth a lot of money and are usually on a long term basis. Bombardiers products can be


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considered has luxury goods, and because its harder to find a new customer than to retain one,all these companies put a lot of effort on marketing and customer satisfaction.

Kutipan:

Perusahaan alat transportasi asal Kanada, Bombardier, akan melakukan perombakan dalam

divisi perakitan pesawat terbang. Imbas dari perombakan ini akan ada 1.800 karyawan yang

kena Pemutusan Hubungan Kerja (PHK). "Ini merupakan langkah berikutnya dalam evolusi

Bombardier," kata CEO Bombardier Pierre Beaudoin seperti dikutip AFP, Kamis (24/7/2014).

Perombakan organisasi ini akan berlangsung sampai 1 Januari 2015. Reformasi di tubuh

produsen pesawat ini diharapkan bisa mengurangi ongkos produksi serta menambah efisiensi.

Juru bicara Bombardier, Isabelle Rondeau, mengkonfirmasi jumlah pegawai yang akan kena

PHK tersebut. Ia menyebut, pegawai yang akan terkena PHK berada di divisi perakitan pesawat

terbang. "Langkah ini akan memberi kami ruang untuk berkembang lebih fleksibel lagi dalam

memberikan pelayanan kepada pelanggan," katanya dalam keterangan tertulis. Pesanan

pesawat berbadan sedang tipe CSeries milik Bombardier memang sedang turun. Masalahnya,

mesin pesawat tersebut ternyata harganya cukup mahal sehingga sulit bersaing dengan

pesawat dari pabrik lain. Bombardier juga mengumumkan salah satu petingginya, yaitu CEO

Divisi Aerospace Bombardier, Guy Hachey, segera pensiun. "Guy sudah memimpin Divisi

Aerospace Bombardier dalam beberapa perjalanan penting sepanjang sejarah. Saya ingin

mengucapkan terima kasih atas kontribusinya kepada perusahaan dalam enam tahun terakhir,"

kata Beaudoin. Bombardier adalah satu-satunya perusahaan yang memproduksi pesawat dan

kereta. Akhir tahun lalu, Bombardier raup omzet US$ 18,2 miliar (Rp 182 triliun)

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Fokker vs Bombardier