Post by
stockitnow on Jan 06, 2023 10:57am
Aftermarket sales and support
As charter bizz jet operators, private jet sharing companies and like expands, this gives tremendous growth to aftermarket sales and support. Now is the time for these companies to expand.
Airlines are going through aircraft pax densification to increase profitability as they are reducing routes and lossing business class clients. Airlines are going towards low fare max pax on poplar routes, and private jet sharing are picking up business class flyers for time saving and flexibility. Both sector will do well.
While new jet delivery numbers are important for healthy number of aircraft in the field, its aftermarket which will be cash generator over and over. Bombardier makes money one time on initial sale of jet. Aftermarket will generate cash from same aircraft everytime it comes in for services and upgrades.
I dont know what the margin on aftermarket sales and service is, but on new jet sale its ~5-11%. 5% for Global 7500 and 11% for Challenger. This is what was reported few years back. Global 7500 learning curve and ramp up should bring it to 11%.
What would be nice is if more Airlines had private jet service as their ultra business class flying division. Delta had teamed up with Wheels up to do exactly that.
Comment by
Form001 on Jan 06, 2023 11:03am
BBD is working to have more green jets, with good news about this, could be the next EV's crazy stocks price.
Comment by
Truthifest on Jan 06, 2023 11:14am
The razor/razor blade model is a great model to have. Sure helps to drive up the installed base of razors, tho.
Comment by
Truthifest on Jan 06, 2023 11:39am
Really looking forward to mgmt's discussion of the business outlook, including the update to the 2025 Plan, during Investor Day. Hope analysts ask a ton of good questions. If this site submits some good ones, I wonder if Martel & team would field them?