The Choice of Final Assembly Site for Bombardier Aerospace’s CSeries: Abstract
This case describes how the decision was reached to select Montreal as the future assembly site for Bombardier‘s new CSeries family of aircraft. To situate the context in which this strategic decision was made, the case offers an overview of the situation of the air transport industry, with a focus on the regional jet market and Bombardier’s presence in this market. The case then presents Bombardier’s new 110- to 130-seat aircraft program, known as the CSeries, in relation to the competition and describes the main phases in the development of this new family of aircraft. Finally, the case describes the two-step process Bombardier used to choose the final assembly site, emphasizing the location criteria that guided its analysis.
It is interesting to note that, in addition to the operational criteria typically involved in this type of analysis (costs, skilled labour force, transportation infrastructure, taxes, etc.), this case illustrates the importance of considering criteria related to securing financing for product development costs and for sales. In concluding, the case illustrates the type of analytical grid used to assess the different quantitative and qualitative criteria.