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http://www.economist.com/news/business/21586556-canadas-new-passenger-jet-threatens-old...

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lkballer24 | Student, Grade 11 | Valedictorian

Posted September 25, 2013 at 11:55 PM via web

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http://www.economist.com/news/business/21586556-canadas-new-passenger-jet-threatens-old-duopoly-bombardier-lights-fuse

Based on the above article:  What are some of the positive and negative impacts to the people of the participating nations/parties and in your opinion how can the situation be resolved or improved?

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farouk23 | College Teacher | (Level 1) Associate Educator

Posted September 26, 2013 at 7:26 PM (Answer #1)

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Bombardier’s entry into the medium bodied aviation segment provides an opportunity for the creation of more jobs in Canada as well as revenue for the company. Bombardier’s entry into the market segment will also encourage greater competition that may lead to better aircraft quality and efficiency.

For Boeing and Airbus, who currently dominate the medium bodied aviation market segment, increase competition may mean a loss of market share as Bombardier takes away their potential customers.

Despite the advantages of increasing their customer base Bombardier may not recoup their initial investment in the new plane due to changing dynamics in the aviation market. In order to alleviate the possibility of lacklustre sales, Bombardier should partner with other countries and companies in order to help break the duopoly enjoyed by Boeing and Airbus. 

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