Mike Arcamone, 53, fills a post left vacant since the retirement of former Boeing (BA) Co. executive Gary Scott on Oct. 1. Arcamone’s appointment is effective Feb. 1, Montreal-based Bombardier said in a statement today.
The post will be Arcamone’s first job in aerospace after a 30-year career in the automobile industry. The Montreal native most recently served as chief executive officer of GM Korea, where he was responsible for a “multi-billion dollar” business with exports to 150 customers, Bombardier said.
“Although aerospace is a new industry for Mr. Arcamone, we believe that many of the skills he acquired in the automotive industry are transferable to the aerospace industry,” Benoit Poirier, an analyst at Desjardins Securities in Montreal, said in a note to clients. Poirier has a “buy” rating on the shares.
Scott, 61, was instrumental in the development of the CSeries, designed to capture a share of the market for the smallest narrow-body planes from larger rivals Airbus SAS and Boeing.
The CSeries is on schedule for delivery next year. It will come in two versions, seating 110 to 145 passengers, with the larger model due to enter service in 2014.
Bombardier expects the CSeries to be a key contributor in reaching a goal of almost doubling revenue in the next decade. The new plane would contribute $5 billion to $8 billion annually toward the target, CEO Pierre Beaudoin told investors Dec. 6. Bombardier posted $14 billion in revenue in the nine months through Oct. 31.
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