Bombardier is strategically positioned to capitalize on the Canadian government's new "buy Canadian" defense procurement strategy, according to CEO and President Éric Martel. Speaking at a Montreal conference, Martel emphasized the company's readiness to benefit from domestic defense initiatives while simultaneously pursuing significant growth opportunities in India's burgeoning aviation sector.
Indian Market Expansion Plans
Martel described India as a market poised for explosive growth within the next decade to fifteen years. "We will be there, and we are in a good position," he stated confidently. "It's a market that is looking to explode in 10 to 15 years."
Bombardier has maintained business operations in India for several years, with more than sixty aircraft currently in service throughout the country. While expansion efforts have faced challenges including infrastructure limitations, technical capability gaps, and pilot shortages, Martel noted promising developments on the horizon. India plans to construct more than a dozen new airports, creating substantial opportunities for aviation companies.
"At present, there are only about 10 competitors to Bombardier in India," Martel revealed, suggesting the company enjoys a relatively favorable competitive position in this rapidly developing market.
Gripen Fighter Jet Prospects
Despite optimism about international expansion, Martel tempered expectations regarding Bombardier's potential involvement in Canada's consideration of Gripen fighter jets from Swedish manufacturer SAAB. The CEO made clear that his company does not specialize in fighter jet production.
"I'm not in the fighter jet business, we don't do fighter jets at Bombardier," Martel explained. "We do commercial planes, we do missionized planes that we transform ourselves. This is more a contract for assembly."
He further noted that any decision regarding the Gripen contract remains pending at the government level. "First of all, it's a government decision that hasn't been made yet," Martel stated, indicating the preliminary nature of discussions.
Existing SAAB Partnership
Bombardier already maintains a productive partnership with SAAB through their collaboration on GlobalEye aircraft. This project utilizes Bombardier's Global 6500 jets as platforms for surveillance and radar systems installation, forming what Canada designates as the airborne early warning and control (AEWAC) system.
"There are other things we are doing with them, GlobalEye is a priority," Martel acknowledged. "But if the government asks, we are good partner, we are Canadians."
Defense Contract Performance
Martel highlighted Bombardier's substantial defense-related business, noting the company completed more than $1 billion in defense contracts during the previous year. The federal government's strategic shift toward prioritizing Canadian-based firms for defense acquisitions stands to benefit Bombardier and its potential partners significantly.
International Trade Dynamics
The CEO addressed recent trade tensions, particularly threats from former U.S. President Donald Trump to impose substantial tariffs on Bombardier aircraft. Martel characterized his company as "collateral damage" in disputes between Transport Canada and Gulfstream that have since been resolved.
Martel expressed confidence that tariffs remain unlikely in the aerospace sector due to deeply interconnected international supply chains. He noted that more than fifty percent of components in Bombardier's new Global 8000 business jet originate from the United States.
"People believe that aerospace is so significant for both countries," Martel observed. "I just mentioned we have 2,800 suppliers in the United States. So, yes, it's a big market for us but, at the same time, we are a big market for them. So I do believe that common sense will prevail."
The United States represents more than half of Bombardier's sales, maintaining its position as both a crucial partner and major customer for the Canadian aerospace manufacturer.
