CEO of Bombardier Éric Martel
Stephanie Ricci contributed to this story.
Éric Martel is a skilled problem solver, leveraging his engineering background to tackle complex challenges.
He took the reins of the multinational aerospace and transportation company Bombardier in the spring of 2020, becoming the CEO of a company with financial challenges in unprecedented uncertainty. The additional layer of complexity caused by the COVID-19 pandemic made his drive to tackle complex challenges more valuable than ever.
Three years later, the company has successfully navigated the pandemic, but not without significant changes and transformations from its earlier days. Bombardier, which had seemingly fallen off its perch, has now rebounded thanks to aggressive measures that proved to be worth the wait.
Restructuring leads to financial turnaround
In 2020, the company unveiled a major restructuring plan aimed at reducing its multi-billion-dollar debt and consolidating its focus on its core aviation business, such as business jets.
This involved selling its regional jet program to Mitsubishi Heavy Industries, its aerostructures division to Spirit AeroSystems, and its rail division to French train maker Alstom.
The restructuring paid off, reducing the company’s debt by nearly half, according to Martel.
The CEO recently presented the company's financial targets for the mid-decade at its Investor Day event, indicating a promising outlook for Bombardier's new era. This is a positive development for the firm, which previously faced a cash shortage when it launched new aircraft a decade earlier.
Bombardier aims to deliver around 150 business jets in 2025. During that year, the company expects to generate more than $9 billion in annual revenue, a significant increase from the $6.9 billion earned in 2022.
A legacy for Quebec
The Bombardier legacy includes the successful Airbus A220 family, a difficult unit for the company to sustain, not because of engineering-related issues, but because it faced tough competition in the commercial airline industry.
"We've been developing 32 programs in 32 years in this company overall. Some were clean sheets, some were an improvement on the product, but we've done it over and over again," says Martel.
"We tried very hard to get into the commercial business," he says. "It was not about our capability to develop the right product, but clearly, we were competing with two giants, extremely well-supported by the government."
The A220 family is now quite the success as Airbus ramps up production. Manufactured in Mirabel, Quebec, the series generates significant tax revenue and created "thousands of jobs," says Martel, who believes Bombardier's overall impact on the supply chain has created over 31,000 jobs in Canada.
After only three years under Martel’s leadership, Bombardier has undergone a remarkable and unexpected transformation. Despite facing challenges, the company remains a significant player in the aerospace industry with a bright future.
