Montreal Aeronautics Post-Fordism

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Montreal Aeronautics Post-Fordism • A great deal of traditional manufacturing in Canada faces competition from lower waged economies • But some manufacturing is based on high quality, not low wages • Germany follows this strategy • And Montreal’s aeronautics hub Ben Hassan et al 2011 • Strong clustering of aeronautics in Montreal • Aeronautics tends to cluster • Emphasis on high-technology, high-value, high-quality manufacturing, servicing. Montreal • In the 1980s was in manufacturing decline • Traditional manufacturing shedding workforce, relocating, shutting down • Industries decentralizing • Needed to revive its economic base • Government chose to focus on aeronautics Montreal Aeronautics • Aeronautic industries started in 1920s-1930s • Canadian Vickers/Canadair (1920s) • CAE Ltd (1947) • Pratt & Whitney • Bombardier becomes dominant player in 1980s Montreal • Has 87-98% of Quebec’s aeronautics • 2009: $12.4 Bn of business, 40,200 workers, 235 firms Bombardier • Focussing on high-tech niche aircraft • Q400s turboprops for efficient short-haul passenger traffic • C-series jets for efficient medium-haul passenger traffic • CRJ Canada Regional Jets, plus business jets • Requires global markets • Competition from ATR on turboprops and from Embraer on regional jets • Faced with US protectionism Bombardier cut a deal with Airbus to build the C-Series, with some assembly in USA Airbus • Took a 51% stake in Bombardier’s C-Series business in 2017 • Bombardier: 31%; Investment Quebec: 19% stakes • Much of the manufacturing remains in Montreal aeronautics hub • C-Series becomes Airbus A220: • Airbus secures 537 firm orders, 227 options for A220 series • Delta Airlines taking 90, Moxy and JetBlue taking 60 each • Airbus has a total order book of 7,525 aircraft ordered and yet to be delivered Montreal Aeronautics Hub • Now seems to have a future bound up with Airbus.

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