Russia vs. the World, part whatever....
- Thread starter Ms Erica Phoenix
- Start date
But who manufactures the robots? Other robots? I hope not, that's the first step to them taking over and wiping out humanity! I've seen it in way too many sci-fi novels!
Selling aircraft to Russia would be very short term. Nationalism is very big there, and in that sort of culture they employ protectionism to "keep the jobs at home". Rest assured that the market will not be around for long. Russian has or had a strong aerospace industry, and they will want to rebuild that. If Bombardier thinks they will be able to compete there in anything other than the short term, they are sadly delusional.
A few weeks before the current ruckus I posted a report about rules that they had introduced controlling lingerie (and what went into them), which was a clear attempt to create barriers to importation of foreign made lingerie. It was amusing, but still it demonstrated the sort of thinking that their government has. I bet that sort of thing is going on all over Russia and it will become more and more difficult for outsiders to do business or hold business interests there. Anyone who does is going to find that they will build the market there, then suddenly there will be a "rule change" that will shut them out of that market.
A few weeks before the current ruckus I posted a report about rules that they had introduced controlling lingerie (and what went into them), which was a clear attempt to create barriers to importation of foreign made lingerie. It was amusing, but still it demonstrated the sort of thinking that their government has. I bet that sort of thing is going on all over Russia and it will become more and more difficult for outsiders to do business or hold business interests there. Anyone who does is going to find that they will build the market there, then suddenly there will be a "rule change" that will shut them out of that market.
Russians buying aircraft from Canada is about EDC (export finance) they have cash problems over there so get the EDC to loan them 85% of the money to buy a Canadian product. Probably through a Russian Lease company.
Canadian product is acceptable internationally in terms of safety standards. (International landing rights)
Don't see why it would be short term. Hard to beat those terms with domestic supplier.
Canadian product is acceptable internationally in terms of safety standards. (International landing rights)
Don't see why it would be short term. Hard to beat those terms with domestic supplier.
hmmm... curiouser and curiouser :eyebrows:
42K of gold is just shy of $2 million Canadian
42K of gold is just shy of $2 million Canadian
http://www.reuters.com/article/2014/03/22/us-ukraine-crisis-corruption-idUSBREA2L0F120140322
Most of those planes would be used internally, so international landing rights is a small matter.
Getting a loan or not, it is still Russian jobs leaving the country, and the government there will not like that, especially in an industry that they almost certainly see as "strategic". It is not a case of if barriers will be erected, it is when barriers will be erected.
The people buying those planes will probably default on the loans, then good luck getting the planes back. Not that Bombardier cares, once they have sold the things, since Canadian tax payers will be on the hook. And the Russians certainly will not care about Canadian tax payers.
no doubt any country like to support their domestic industries, would not say that Russia was alone in that area.
large contracts with aerospace companies typically require some domestic contracting as part of the import order, i.e. when Canada buys a large number of jets from an American company, the company is typically required to spend or procure a contracted minimum amount from Canadian industry. Sometimes they will set up a subsidiary in country and buy from that subsidiary. This is known as an offset and typical of these large contracts. Bombardier for this order have indicated they will set up a turboprop assembly line in Russia. (not a case of jobs leaving the country)
loans of this nature virtually always come with a sovereign guarantee so not much chance of a default. Russian's have not defaulted on other historical orders with Bombardier.
the newer jets which are in favor these days are about fuel economy for a specific size and range aircraft. the airlines to remain competitive require these economies to stay in business. the industry manufacturers have targeted segments of the market to specialize in so as not to go toe to toe with each other with lower prices, rather they service the niche they specialize in.
not sure why an airline who is in business to make money would prefer a substandard domestic product to a superior foreign product unless tariffs forced the economics, rather they would buy the best tools for the job, national pride aside. its called free enterprise
have a little faith in Canadian industry, they are competent and navigating the international customer base with a good balance of competence, competitiveness, and risk mitigation. Bombardier rapid transit trains have been selling internationally quite well in the past 10 years.
doubt if commercial lenders, EDC included would loan without a sovereign guarantee for an order of this magnitute to a country like Russia so all in all I am not sure why the assumption of default unless you are just Russian bashing......
large contracts with aerospace companies typically require some domestic contracting as part of the import order, i.e. when Canada buys a large number of jets from an American company, the company is typically required to spend or procure a contracted minimum amount from Canadian industry. Sometimes they will set up a subsidiary in country and buy from that subsidiary. This is known as an offset and typical of these large contracts. Bombardier for this order have indicated they will set up a turboprop assembly line in Russia. (not a case of jobs leaving the country)
loans of this nature virtually always come with a sovereign guarantee so not much chance of a default. Russian's have not defaulted on other historical orders with Bombardier.
the newer jets which are in favor these days are about fuel economy for a specific size and range aircraft. the airlines to remain competitive require these economies to stay in business. the industry manufacturers have targeted segments of the market to specialize in so as not to go toe to toe with each other with lower prices, rather they service the niche they specialize in.
not sure why an airline who is in business to make money would prefer a substandard domestic product to a superior foreign product unless tariffs forced the economics, rather they would buy the best tools for the job, national pride aside. its called free enterprise
have a little faith in Canadian industry, they are competent and navigating the international customer base with a good balance of competence, competitiveness, and risk mitigation. Bombardier rapid transit trains have been selling internationally quite well in the past 10 years.
doubt if commercial lenders, EDC included would loan without a sovereign guarantee for an order of this magnitute to a country like Russia so all in all I am not sure why the assumption of default unless you are just Russian bashing......
Bombardier Inc. is going to be a victim of the sanctions levied against Russia. I think that the International Space Station will also be a victim of the sanctions.
Putin is going to insist on the sanctions being lifted, especially the frozen bank accounts, before he engages in international cooperation with the West.
Russia has argued the concept of sovereignty in regard to Syria for the past 4 years. I don't know why it surprises anyone that he adheres to the same concept on his own internal politics.
Putin has a veto in the UN and he has control of what goes up to the International Space Station. He's going to play his cards, especially since he knows the US won't involve their military in active operations.
Putin is going to insist on the sanctions being lifted, especially the frozen bank accounts, before he engages in international cooperation with the West.
Russia has argued the concept of sovereignty in regard to Syria for the past 4 years. I don't know why it surprises anyone that he adheres to the same concept on his own internal politics.
Putin has a veto in the UN and he has control of what goes up to the International Space Station. He's going to play his cards, especially since he knows the US won't involve their military in active operations.
Without any surprise, I read that "Western" companies are a little unpopular in Russia these days. Visa, Mastercard and American Express will be taking the immediate hit because Russian retailers don't want to find that it's difficult to get their payments.
http://www.cbc.ca/news/world/ukraine-crisis-takes-anti-west-sentiment-to-streets-of-moscow-1.2614359
http://www.cbc.ca/news/world/ukraine-crisis-takes-anti-west-sentiment-to-streets-of-moscow-1.2614359
