Bombardier Aerospace is a division of the Bombardier group. Initially, the aerospace division was launched with the acquisition of Canadair, at the time owned by the Government of Canada and a company that had recorded the then largest loss in history of any Canadian corporation. Politically, the Federal Government could not allow the Montreal, Quebec based company to close, and any hints that it might do so, were quickly met with media stories of the Government's Avro Arrow disaster.

After the acquisition of Canadair, and restoring it to profitability, Bombardier acquired the money-losing Boeing subsidiary, de Havilland Aircraft of Canada based in Toronto, Ontario. A few years later, Bombardier, by then experts at buying companies cheap and turning them around, acquired the near-bankrupt Short Brothers aircraft manufacturing company in Belfast, Northern Ireland.

An important Aircraft manufacturer, building business jets, short-range airliners and fire-fighting amphibious aircraft. The company also provides defense-related services. Some of their successful aircraft designs originated in the design departments of Canadair or de Havilland Aircraft of Canada. The company has been adept at developing quiet turboprop airliners capable of using urban airports with relatively short runways and steep glideslopes. These are selling well in a competitive market and are enabling some less popular routes (sectors in airline parlance) to be profitably served by scheduled air services with relatively low environmental impact at the airports so connected. They have recently mounted and endured some unusual legal battles with a key competitor Embraer of Brazil focused upon allegations of unfair state assistance in export markets.

History

In 1942, founding of a company by J.-Armand Bombardier to manufacture tracked vehicles for transportation on snow-covered terrain. The company's name is L'Auto-Neige Bombardier Limitée.

In 1967, L'Auto-Neige Bombardier Limitée becomes Bombardier Limited.

On January 23, 1969, listing of Bombardier stock on the Montreal and Toronto stock exchanges and public offering of two million shares. Shares are now traded on the Toronto, Brussels and Frankfurt stock exchanges.

In the early 1970s, acquisition of the Austrian company Lohnerwerke GmbH and its subsidiary Rotax-Werk AG, the supplier of the Rotax^TM engine used in snowmobiles. In December 2003, as part of the recreational products segment, this business is sold to members of the Bombardier family, Bain Capital and the Caisse de dépôt et placement du Québec.

In 1972, creation of subsidiaries Bombardier Credit Ltd., in Canada, and Bombardier Credit Inc., in the United States, to handle inventory financing of Ski-Doo^TM dealers.

In 1974, diversification into the transit equipment industry with a contract to build rolling stock for the City of Montréal subway system.

In December 1986, acquisition of Canadair, leading Canadian aircraft manufacturer.

In 1987, acquisition of the railcar designs of U.S. companies Budd and Pullman.

In December 1987, signature of a commercial agreement with GEC Alsthom for the marketing of the TGV** high-speed train in North America.

In early 1988, acquisition of the majority interest (90.6%) in BN Constructions Ferroviaires et Métalliques S.A., a Belgian designer and manufacturer of railway equipment. (Full ownership today.)

In the fall of 1988, acquisition of snowmobile manufacturing plants in Finland, in a joint venture with a Finnish partner. In December 2003, as part of the recreational products segment, this business is sold to members of the Bombardier family, Bain Capital and the Caisse de dépôt et placement du Québec.

In February 1989, acquisition of the assets and operations of the tracked vehicle division of U.S. company Universal Go-Tract. In December 2003, as part of the recreational products segment, this business is sold to members of the Bombardier family, Bain Capital and the Caisse de dépôt et placement du Québec.

In October 1989, acquisition of Short Brothers plc (Shorts), a Northern Ireland manufacturer of civil and military aircraft, aerostructures and defence systems. Founded in 1901, the company received the first aircraft production contract in history from the Wright brothers in 1909.

In December 1989, acquisition of ANF-Industrie, France's second largest manufacturer of railway equipment.

In March 1990, creation of subsidiary Bombardier Real Estate Ltd., responsible for the management of Bombardier's real estate assets. In June 1990, creation of a new subsidiary, Learjet Inc., to acquire the assets and operations of Learjet Corporation, U.S. builder of the world-famous Learjet business aircraft.

In November 1990, acquisition of Procor Engineering Limited, a British manufacturer of body shells for locomotives and rail passenger cars.

In February 1992, acquisition of the Canadian rail transit assets of Ontario-based Urban Transport Development Corporation Inc. (UTDC).

In March 1992, acquisition of the assets and operations of Ontario-based de Havilland, manufacturer of the Dash 8* turboprop regional aircraft. Acquisition made through a new company, de Havilland Inc., whose equity is shared by Bombardier (51%) and the Province of Ontario (49%). In January 1997, Bombardier completed the purchase of the 49% interest in de Havilland, owned by the Province of Ontario.

In May 1992, acquisition of the assets of a Mexican manufacturer of railway rolling stock, Constructora Nacional de Carros de Ferrocarril. Transaction completed through a newly created Mexican subsidiary, Bombardier-Concarril, S.A. de C.V.

In December 1992, strategic alliance between subsidiary Short Brothers and French company Hurel-Dubois in order to offer complete engine nacelle capability to the leading aircraft manufacturers and engine builders worldwide. The joint company is called International Nacelles Systems EEIG.

In March 1993, foundation of Shorts Missile Systems Limited, a 50-50 joint venture company between Short Brothers plc and Thomson-CSF of France, in the field of very-short-range surface-to-air defence systems. In January 2000, Bombardier sells its 50% interest in Shorts Missile Systems Limited to Thomson-CSF.

In November 1993, through subsidiary Shorts, acquisition of Airwork Limited, an international aviation support company from the United Kingdom. In June 2000, Bombardier sells its defence business in the U.K., including Airwork.

In November 1994, acquisition of a 25% interest in the share capital of Québec-based Nova Bus Corporation, which is active in the transit bus industry. In January 1997, Bombardier announces its intention to withdraw from Nova Bus, which is sold in December of the same year.

In February 1995, acquisition of the assets of Sea-Doo^TM jet boats supplier-partner Le Groupe AMT Marine, of Québec. This operation, combined with the simultaneous acquisition of the assets of powerboat manufacturer Celebrity Boats, of the United States, provides Bombardier with a wider range of recreational products. In December 2003, as part of the recreational products segment, this business is sold to members of the Bombardier family, Bain Capital and the Caisse de dépôt et de placement du Québec.

In February 1995, the subsidiary Learjet Inc. purchases four aircraft maintenance centres from U.S. company AMR Combs.

In April 1995, acquisition of German transportation equipment manufacturer Waggonfabrik Talbot GmbH & Co. KG.

In May 1995, joint venture between Bombardier and U.S. corporation AMR Combs. The newly formed company, which is called Business JetSolutions*, offers the fractional ownership program Bombardier* Flexjet* in the business aviation market. In December 1997, Bombardier acquires AMR Combs' interest in the Flexjet program.

In December 1995, inauguration of an aerospace training centre in collaboration with CAE Electronics.

In February 1996, creation of Bombardier Services to foster the development of a stronger presence in the growing market for support, maintenance and training services as well as operations management in the public and private sectors.

In December 1996, Bombardier finalizes agreement for acquisition of the business jet completion division of Innotech Aviation Inc. of Dorval, Québec.

In February 1997, Bombardier purchases NorRail Inc., a railcar leasing and management firm servicing customers in the United States, Canada and Mexico.

In November 1997, Lufthansa Bombardier Aviation Services opens Europe's only network service centre for Bombardier aircraft.

In 1998, Bombardier is reorganized into five groups: Bombardier Aerospace, Bombardier Transportation, Bombardier Recreational Products, Bombardier Services and Bombardier Capital. Bombardier will integrate its activities under Bombardier Services into its manufacturing groups in January 1999.

In February 1998, Bombardier finalizes the acquisition of rail transportation equipment manufacturer Deutsche Waggonbau AG (DWA) of Berlin, Germany.

In March 1998, Bombardier announces the conclusion of an agreement to acquire a 26% interest in the share capital of the Vienna-based ELIN EBG Traction of Austria.

In March 1998, Bombardier International is created to pursue growth opportunities for Bombardier into targeted markets outside of North America and Western Europe.

In September 1998, Bombardier lists its Class B Shares on the Frankfurt Stock Exchange under the symbol BBDd.F.

In September 1998, Bombardier Transportation completes a joint venture with The Greenbrier Companies to build freight cars in Mexico.

In November 1998, Bombardier and Power Corporation of Canada establish a joint venture with Sifang Locomotive & Rolling Stock Works of Quingdao to manufacture mass transit railcars in China.

On February 1, 1999, Robert E. Brown is appointed President and Chief Executive Officer of Bombardier Inc, while Laurent Beaudoin becomes Chairman of the Board and of the Executive Committee.

In July 2000, Bombardier acquires Skyjet.com, a pioneer in real-time online air charter reservations.

In August, 2000, Bombardier signs a sale and purchase agreement with DaimlerChrysler AG of Germany to acquire its subsidiary DaimlerChrysler Rail Systems GmbH (Adtranz), based in Berlin. Adtranz is present in major markets around the world with 22,000 employees and facilities in 19 countries on four continents. Its revenues for 1999 totalled $5 billion Cdn ($3.4 billion US).

In August 2000, Bombardier announces that it will invest approximately $170 million to build a final assembly facility for its regional aircraft Bombardier* CRJ700* and CRJ900*, at Montréal's Mirabel airport.

In December 2000, Bombardier selects Pierre Beaudoin to lead Bombardier Aerospace, Business Aircraft unit. Jean-Yves Leblanc is appointed to the position of Chairman of Bombardier Transportation. Pierre Lortie will move to the position of President and Chief Operating Officer of Bombardier Transportation. These appointments are effective December 6, 2000. They will report directly to Robert E. Brown, President and Chief Executive Officer of Bombardier Inc.

In March 2001, Bombardier finalizes the acquisition of Outboard Marine Corporation's (OMC)^TM engine assets. In December 2003, as part of the recreational products segment, this business is sold to members of the Bombardier family, Bain Capital and the Caisse de dépôt et placement du Québec.

In May 2001, Bombardier finalizes acquisition of DaimlerChrysler Rail Systems GmbH (Adtranz), based in Berlin, Germany and becomes the industry leader in all activities related to the production of rail vehicles in world markets. This acquisition complements Bombardier's transportation activities in terms of geographical markets, products and services, broader capabilities, expertise and assets.

In May 2001, Bombardier unveils new outboard engines manufacturing structure, Evinrude^TM and Johnson^TM products. In December 2003, as part of the recreational products segment, this business is sold to members of the Bombardier family, Bain Capital and the Caisse de dépôt et placement du Québec.

In October 2001, Pierre Beaudoin is appointed President and Chief Operating Officer of Bombardier Aerospace.

In May 2002, the Government of Canada recognizes the national historic significance of Joseph-Armand Bombardier.

In October 2002, Bombardier unveils the Bombardier* JetTrain* high-speed locomotive. Using innovative turbine-generator technology, the JetTrain concept provides the speed and acceleration of electric trains without the cost of constructing and electrified network.

On December 13, 2002, Robert E. Brown leaves Bombardier and Paul M. Tellier is appointed President and Chief Executive Officer, effective January 13, 2003.

On April 3, 2003, President and Chief Executive Officer Paul M. Tellier announces Bombardier's action plan, which includes a major recapitalisation program featuring an equity issue and asset divestitures, including Bombardier Recreational Products, Defence Services and Belfast City Airport. Together, they are expected to generate in excess of $2 billion, and will strengthen Bombardier's balance sheet, serve to rebuild its credibility with investors, and sharpen its focus on aerospace and transportation.

On April 7, 2003, Bombardier wins its biggest ever transportation supply contract worth $7.9 billion for the London Underground in U.K. The contract from Metronet is for the supply of rolling stock, signalling, maintenance and project management for the modernisation of London's Underground system.

In May 2003, Belfast City Airport is sold to Ferrovial of Spain, for a total consideration of $77.7 million. This divestiture is part of Bombardier's recapitalization plan.

In June 2003, Bombardier's Military Aviation Services unit is sold to Spar Aerospace Limited, a subsidiary of New York-based L-3 Communications Corporation. This divesture is also part of the recapitalization plan. This deal is closed in November 2003 for a total consideration of $87.4 million US.

In August 2003, Bombardier announces an agreement to sell the bulk of Bombardier Capital's business aircraft market portfolio to GE Commercial Equipment Financing for $339 million US ($475 million Cdn).

On August 27, 2003, an agreement to sell its recreational products segment to a group of investors comprised of members of the Bombardier family, Bain Capital and the Caisse de depôt et placement du Québec is reached.

In November 2003, Pierre Lortie, President and Chief Operating Officer of Bombardier Transportation, leaves the Corporation.

In December 2003, the recreational products segment is sold. This transaction all but completes Bombardier's action plan, which generated in excess of $2.5 billion.