In 2012, when the CSeries was planned to cost $3.4 billion to develop, Bombardier had $5.7 billion in debt and $670 million in earnings. Now the cost of developing its all-new narrowbody airliner has risen to $5.4 billion, and the company has $8.4 billion in debt and losses of $570 million in 2014. With analysts concerned it could run out of cash, the company announced a new financing plan and chief executive. United Technologies Corp. aerospace executive Alain Bellemare has replaced Pierre Beaudoin as CEO, with an initial focus on improving program execution. Beaudoin has become executive chairman, replacing his father, Laurent Beaudoin, who has retired after 50 years. Pierre Beaudoin says his initial focus will be the financing plan, which aims to raise up to $600 million in equity and $1.5 billion in debt. Bombardier's problem is the CSeries, which will continue to consume development dollars into 2016. And even if deliveries begin in the second half of this year, as the company maintains, the aircraft will sell at a loss because of launch prices until production ramps up. Beaudoin now says entry into service of the initial 110-seat CS100 will be "more toward the end of the second half."
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