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originally posted by: OccamsRazor04
a reply to: Zaphod58
I was thinking in the contract that got them the manufacturing jobs would be a clause penalizing them monetarily for canceling orders, as they are getting the benefit without following through with the purchase.
originally posted by: Zaphod58
Short term this doesn't hurt. Long term this hurts them a lot. They could be producing parts for the next ten years though, depending on the parts and the contract.
originally posted by: Zaphod58
And you don't think losing "even" $637M in business, when the industry is already hurting, isn't going to hurt bad?
While it might not have gotten to $10B, it would have gone a lot higher than it is now. That's based on current production rates. Right now, between built and currently being built, you're talking under 300 aircraft. One it goes to full rate production you're going to be looking at almost 250 aircraft a year.
originally posted by: Zaphod58
With the current state of the Canadian forces ANY procurement program is going to eat a big chunk of the budget.
As of now there's essentially no Aerospace industry in Canada. Many companies there are satellite companies or only build parts as suppliers to manufacturing companies.
Bombardier has the CSeries, which has not been nearly as successful as they hoped it would be. But they're really about the only Canadian manufacturer left. AugustaWestland is an Italian company, Bell Textron is American, etc.
They needed this business, not just because of the money, but so that the people tatty do the work keep in practice and when they do have a program going on they aren't starting totally from scratch.
The contracts are happening with or without Canadian participation, only now there can't be Canadian participation beyond what's already contracted.
originally posted by: Zaphod58
a reply to: OccamsRazor04
No, current work will continue regardless. What they lose is the ability to add work as production ramps up. What they have now will continue until the contracts end.
Short term this doesn't hurt. Long term this hurts them a lot. They could be producing parts for the next ten years though, depending on the parts and the contract.