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Bombardier Inc. T.BBD.A

Alternate Symbol(s):  BDRPF | T.BBD.PR.B | BDRXF | T.BBD.PR.C | T.BBD.PR.D | BOMBF | BDRAF | T.BBD.B | BDRBF

Bombardier Inc. is a Canada-based manufacturer of business aircraft with a global network of service centers. The Company is focused on designing, manufacturing and servicing business jets. The Company has a worldwide fleet of more than 5,000 aircraft in service with a variety of multinational corporations, charter and fractional ownership providers, governments and private individuals. It operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. Its robust customer support network services the Learjet, Challenger and Global families of aircraft, and includes facilities in strategic locations in the United States and Canada, as well as in the United Kingdom, Germany, France, Switzerland, Austria, the United Arab Emirates, Singapore, China and Australia. The Company's jets include Challenger 350, Challenger 3500, Challenger 650, Global 5500, Global 6500, Global 7500 and Global 8000.


TSX:BBD.A - Post by User

Comment by stockitnowon Apr 26, 2023 11:18am
142 Views
Post# 35414599

RE:RE:New factor

RE:RE:New factorFrom OEM side, pre 2008 they used to take small deposit from buyer at time of signing.  And as the aircraft got build the buyer would put more down to match the increase value of the aircraft. By the time the aircraft is completed the buyer has paid for most of the airplane.  This protects the manufacturer.  Recently  I was told that now most of the OEM require 60 to 70% upfront at signing.  This is protecting them from holding on to partially build jets just in case the buyer backs out or files for bankruptcy etc.

I was also told that OEM's have taken a very conservative approach to increase build capacity so that they dont get burn like they did in 2008/9.

As how the buyer pays or finance these all depends on the client.  Fractional ownership get financing like a business just like any other large capital investment.  And the lender is very cautious of the resale value of the aircraft.  So for now Bombardier jets used price are up ~20% and Gulfstream is down ~6%.  Lenders will fill more comfortable financing Bombardier jets because of resale value.

For large jets like Global 7500, if they are bought by individuals then they are usually not financed.  Those wh can afford $75 million jet pay out of their pocket.  They dont finance.

What I have said above is base on what I have read in aviation related articles and from industry networking and trade shows.  Take it for what its worth.
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