Bombardier’s Financial Engine

While Bombardier is widely recognized for its engineering prowess and manufacturing of business jets, its financial arm plays a crucial role in supporting its overall business strategy. The Bombardier finance division, often operating under names like Bombardier Financial Services (BFS), provides a range of financial solutions designed to facilitate the sale and lease of Bombardier aircraft. These services are essential for both the company and its customer base.

One of the primary functions of the finance division is to offer financing options to potential buyers. Business jets represent a significant capital investment, and many individuals and corporations rely on financing to acquire these aircraft. Bombardier’s finance division steps in to provide loans, leases, and other financial arrangements, making aircraft ownership more accessible. These solutions are tailored to meet the specific needs of each customer, considering factors like creditworthiness, desired ownership structure, and anticipated usage.

Beyond traditional financing, the Bombardier finance division may also offer pre-owned aircraft financing programs. This is particularly relevant in the business aviation market, where pre-owned aircraft represent a substantial portion of transactions. By providing financing for pre-owned Bombardier jets, the division contributes to the overall health and liquidity of the market and helps maintain the value of Bombardier’s existing fleet.

Furthermore, the finance division provides a valuable service by managing Bombardier’s financial risks associated with aircraft sales and leases. This includes assessing credit risk, monitoring payment performance, and managing residual values of leased aircraft. Effective risk management is crucial for ensuring the long-term profitability and stability of Bombardier’s business aviation operations.

The specific structure and operations of Bombardier’s finance division may have evolved over time due to strategic shifts and restructuring efforts within the broader Bombardier organization. In recent years, Bombardier has focused on its core business aviation segment, leading to the divestiture of other divisions. This strategic refocusing likely impacted the finance division, potentially leading to adjustments in its scope and operations. Regardless, financial services remain a vital component of Bombardier’s business aviation model.

In conclusion, Bombardier’s finance division acts as a crucial enabler for aircraft sales and leases, providing essential financial solutions to customers and managing financial risks for the company. By offering tailored financing options and effectively managing risk, the finance division contributes significantly to Bombardier’s success in the competitive business aviation market, enabling customers to acquire and operate these sophisticated aircraft.