Air Canada supports aerospace mergers if benefits of competition remain alive – Red Deer Advocate

MONTREAL — Consolidation within the global aircraft manufacturing industry is fine as long as the benefits of competition remain alive, Air Canada’s CEO said Monday.

“Having a dynamic where some of the smaller aircraft are supported by some of the larger aircraft manufacturers can actually be a good thing provided that there is still good competition and you’re not faced with a single source environment,” Calin Rovinescu said during an aerospace conference in Montreal.

Bombardier is in the process of finalizing Airbus’s purchase a majority control of the C Series program, while Boeing is in talks to join forces with Brazil’s Embraer.

Rovinescu said duopolies can get too cozy and act as a negative force against innovation, but the move can also help companies to scale up to ensure programs get to market.

He said Airbus supporting the C Series and Embraer working with Boeing isn’t necessarily negative as long as a couple of competitors remain in the marketplace that allow smaller aircraft makers to continue innovating.

“We like the fact that the C Series served as somewhat of a disruptor in the narrowbody segment of the market where you really do not see a tremendous amount of innovation for nearly three decades,” he said in a discussion with Bombardier CEO Alain Bellemare.

Bellemare said he doesn’t view the Boeing-Embraer tie-up as a “great marriage” but said Bombardier’s deal with Airbus will provide great value to the C Series program.

He said the European manufacturer has an amazing customer reach and scale that will help to accelerate C Series sales, and a vast supply chain that can help the aircraft to achieve cost targets more quickly to meet customer demands for lower pricing.

“It’s a big driving force behind our ability to take the cost down and get to cost

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