Trains, Planes and Bombardier

No one is looking forward to economic recovery more than Pierre Baudoin, CEO of Bombardier. The company makes big-ticket items like high-speed trains, corporate planes and regional jets. He spoke with TIME's Stephen Gandel.

You became CEO of Bombardier in mid-2008, as we were heading into the financial crisis and a global slowdown. Nice timing.

One of the advantages of Bombardier's being a family-controlled company is that we can keep perspective. So we kept our long-term investments in place. But what we did that was not part of my plan was to really slow down our production rates, which meant layoffs and expense cuts. Anything we didn't need to do today, we didn't do.

What parts of your business have snapped back quickest?

We see a recovery definitely in Asia. In China, in particular, there has been an immediate impact of the stimulus. In the rest of the world, I would say it's O.K. Our rail-transportation business never really slowed down. On the aerospace side, which was slow in 2009, we are seeing larger business aircraft come back in orders. These are our Challenger and Global Express private jets, which cost $20 million or more.

At the auto-industry hearings, the Detroit Three managed to turn owning a corporate jet into a disease. How do you fly?

When the economy recovers, you will see corporate-jet sales recover as well. In North America, we have a fraction-ownership business called Flexjet. So that's what I use. If it's a short trip, we use a Lear 45. For a longer trip, it's the Challenger or Global Express.

President Obama has discussed investing in fast rail in Florida. Is investment in our railroad infrastructure really possible, given the cost?

First of all, there is a large amount of money from the stimulus, so projects can be looked at across the country. Second, it's important to look at the rail system and say, How do we make it more appealing to passengers? It is not only about putting very high speed rail here and there. By improving signaling, you can put more density on the lines and therefore have better service. You need to look at every sector in the U.S. where there is interest in rail and say, Before you go for very high speed, how can we make what you have better?

A number of companies, including GE, Philips, Siemens and IBM, are very focused on cities. How does that fit Bombardier's strategy? How do you plan to compete?

Everybody accepts that rail transportation is an eco-friendly way to move people in large cities. The Chinese, for example, have no choice. But wherever the infrastructure for roads is not as efficient as it should be, put in a metro, and there are going to be a lot of people on it. Our first metro is going into India, in Delhi, and it is very popular. Across India, there are metro projects in every major city. The advantage of Bombardier is that we have the widest product portfolio in the industry. That is especially important in countries where they are just starting to lay track.

In the airframe business, you are taking on Boeing and Airbus. Can you compete?