The sky’s the limit for Bombardier as demand for luxury planes increases
Guess what? It’s harder than it used to be to buy a used business jet. That might be bad news if you’re a buyer but it’s great for Bombardier, which is set to capitalise on the increasing demand. Bombardier, a Canadian aerospace and transportation company best known for making planes, is likely to benefit from the current climate in the U.S.: President Trump’s tax cuts have left businesses with more money, and they’re looking to buy private planes. That applies to both used and new.
Bombardier’s share price has appreciated by 32% so far this year
SOURCE: Yahoo Finance
According to JetNetIQ, and advisory and forecasting service, new aircraft deliveries are set to rise by 8% next year. That’s a big change in fortune, as deliveries have been flat or down since 2014. Already achieved in Canada, Bombardier is awaiting certification from the U.S. and Europe (which are expected to arrive soon) to begin deliveries of the Global 7500 – the world’s largest purpose-built corporate jet. Bigger might turn out to be better over the coming years: researchers at Honeywell estimate deliveries of 7,700 planes over the next decade, and more than 60% of them will be large jets.
Speaking after the Global 7500 was awarded its Transport Canada type certification, Bombardier business aircraft president David Coleal said: “The certification of our clean-sheet Global 7500 business jet is a defining moment for Bombardier, for our employees, and for the industry, as we approach entry-into-service. Thanks to the rigor and innovation of our design and test program, the Global 7500 has succeeded in elevating every standard by which a business jet is measured: comfort, luxury, performance, and a smooth ride.”
Dominion holds Bombardier in its Global Trends Managed Fund.
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