Bombardier Inc. T.BBD.A

Large business jets are recession proof

[stockitnow]

This is why PWC after decades of not being a player now has three airframer powered by PW800 engine.  Their president few years back wanted to break into the market.  Cessna, Embraer small jets are at risk during recession.

Large business jets are bought by billionaires or owned by jets sharing company to be used by them.

So if the large business jet are recession proof, then so would Bombardier with its large business jet line up.  And unlike Dassault and Gulfstream, Bombardier dont have any longer and money draining new airframer to certify to bring to market. 

Well played by Bombardier to let Gulfstream sink money in to new model to make G800 which is based off G650ER with G700 wings and engines.  G8000 takes on both G700 and G800 with one plane.

Russian war, airlines reducing their network, uncertainty of global travel recovery is bonus for Bombardier to capture the very high net worth buyers.  Remember, during covid, the rich got richer, and they want to travel in style and privately.

Bombardier has the backlog and are progressing well into increasing their margins to address the debt.

[BBDB859]

Hey Stock. Nice to have you back. where have you been? I've missed your informed opinions and BJ aeroplane know how. Your 100% right on Bombardier's smart move regarding the large BJ's sector. As you say they're way ahead of their competition. Wait until Q1/2024 when Pearson kicks up production to see what this company can really do. Cheers

[stockitnow]

Hey BBDB859, thanks for the welcome back.  I follow this board but not too often as few posters made a muck of it with nonsense post. Agree, Pearson will bring more efficiency, more automation and less overhead cost. Bombardier the new Bombardier is just starting.  We are still around $2 pre RS but with all heavy R&D behind and all legacy dead weight gone, there is more room to go

[BBDB859]

Ya I agree it was getting out of hand for a while there with some very unruly individuals. Eventually they moved though. We now have a core of more mature group of posters, who have a good grasp of the company's accomplishments as far as the LTD debt goes. Plus they also understand that this company is getting much more profitable. So they are getting more patient with this good management

[Truthifest]

Recession resistant, yes, proof, no.  Europe is in a mild recession, and private jet flights are down a lot more than the US, which isn't in a recession.  And if we go down hard, orders and flights and maintenance will get stung, too, just not as much, and hopefully not nearly as much, as the average business.  It's not just the insulated wealthy that buy Bomber's planes

[stockitnow]

Keep in mind all the backlog have money deposited against it.  And as the aircraft progressing in build the buyer keeps depositing more to match the value of the aircraft.  No more white tails.  And if buyers back out they loose the airplane and deposit. Market has shifted to large bizz jets.  A lot of jet share have smaller Cessna and Embraer jets.  They will be the ones

[Truthifest]

Yes, a bunch of positives, but also a few negatives.  The stickiness of many of the new-to-BizJ customers is untested. Many of the asset bubbles have recently deflated, such as cloud software, crypto, and SPACs, and gotta think some of the new users, both personal and corporate, got their ability to fly via those now dwindled assets.  

[stockitnow]

Agree, its a lot of positive but that doesn't mean there aren't any negatives.  For now Bombardier is in good place and until backlog starts shrinking they will do well.  Also the aftermarket is a growing revenue generator.  Military application is extra gravy.

[Truthifest]

Yeah, and some under tapped mkts still, seems to me. I've wondered why Asia isn't a much bigger private jet mkt.  Tons of wealth has been created there now, large distances between countries, etc.  Seems like an opportunity for a great salesperson.