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Hi Norm, nice to hear from you again.

You're probably right about the avionics end of things. I suspect pricing may have been a factor with Garmin elbowing its way into the business jet market, having earned its stripes with smaller aircraft.

Garmin is big in night vision, surveillance cameras etc...moving into avionics for larger aircraft seems a logical progression for that company. Rockwell and Honeywell have pretty much had this area to themselves for awhile. They'll have to learn to compete with the new contender.

As for the Netjets deal, yes, there definitely is more here than meets the eye. Again, I'd suspect pricing could have played a part.

Netjets, Bombardier, and Cessna have been running full-page ads together in the NY Times, Wall St Journal etc...publicizing this deal.

As you may have noticed, the original deal was huge in itself. The fact that they decided to increase the size of it has to be a positive. Up from the original $5-Billion to $7.6-Billion for Bombardier's share. I've never seen an order of that magnitude for commercial jets, let alone business jets.

It's definitely a snub to Gulfstream and Hawker, although it seems Cessna's new CEO managed to wrangle his way back into NJs good graces.

On the negative side, Netjets will now have the widest range to offer its customers, making it hard to imagine how Flexjet can continue to compete offering only Bombardier aircraft. Netjets' line-up now offers aircrasft from every major BJ manufacturer.

It's easy to suspect Bombardier may expect to exit the fractional jetshare business at some point because it does not make sense to compete with a customer, even if that customer is willing to buy from you.

"Rather I want all aspects of the business to be healthy"

Well, yes, in a better world we might dare entertain such lofty aspirations. But, as I'm sure you've noticed in recent years things have been a little rough.

Of course, optimally, we'd like to see Bombardier raking in 8% margins on a consistent basis in Transportation and a fat 12% or more in business jets with orders coming in hand over fist. Gulfstream margins have been as high as 20% although they focus more on the upper end (luxury) of the market.

If we're dreaming why not dream big? Big demand for CSeries, turboprops flying off the shelves, a regional jet revival, and exceptional demand for high-speed, and light rail...did I miss anything?

My point is Bombardier can still perform very well even as some of its products slow, or are slow to take-off. In fact it only seems reasonable to expect at least some of its products won't be as successful as anticipated, and some of its products will wax and wane in terms of popularity.

With a sufficient number of successful products Bombardier can still grow sufficiently to compensate for any area that might experience some weakness.
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