What are some of the major challenges and trends that have been impacting the Aerospace and defense industry lately? How is it affecting Bombardier?
The Aerospace industry is going through unprecedented times with some aspects of our business, and I think the challenges with our supply chain stand out.
To effectively mitigate these challenges, Bombardier has reacted quickly to identify customer concerns before they have escalated, and we have been highly successful in mitigating challenges with our proactive approach. We have also strategically increased inventories of critical components and raw materials and have been proactive in sending staff to key suppliers.
We are also tapping the power of might from our procurement department to help alleviate some of these challenges. We have people in the field working directly with our primary and sub-tier suppliers to ensure the supply chain finds the talent and parts they need. All of this will ensure our customers receive the parts they need from Bombardier when they need them.
What keeps you up at night when it comes to some of the major predicaments in the Aerospace and defense industry?
The supply chain realities are indeed challenging, but we continue to find effective solutions to help deal with current market conditions. And our recent Q3 results show that our fundamentals are very strong. We continue to register solid revenues of $1.5 billion and adjusted EBITDA for the third quarter of $210 million—a 48% year over year improvement.
And our aftermarket division noted a 20 percent year over year increase of $372 million for the quarter, a truly outstanding number given our multiple challenges we have faced this year.
Can you tell us about the latest project that you have been working on and what are some of the technological and process elements that you leveraged to make the project successful?
From a new product perspective, our new flagship for a new era, the Global 8000 aircraft, stands out. Introduced at EBACE earlier this year, this immaculate business jet features an industry-leading range of 8,000 nautical miles, the lowest cabin altitude, and an unbeatable top speed of Mach 0.94.
It truly is the ultimate all-in-one business aircraft, offering our customers a unique blend of outstanding performance married with the smoothest ride and an uncompromising passenger experience—the absolute leader in the long-range class. The aircraft is expected to enter service in 2025.