The Avanti Group Comments on Bombardier’s Delayed C Series Jets Gets Order.


Posted July 17, 2014 by rlewis1968

The Avanti Group comments on Bombardier Inc’s delayed C-Series jets, missing from the world’s biggest aviation expo following a power plant fire, have still received orders from a British aircraft leasing company, Falko Regional aircraft Ltd.

 
The Avanti Group the equities research house based in Tokyo, providing professional trading and investment research solutions to institutional and private investors across the globe have recently drawn their investor’s attention to Bombardier Inc, despite an announcement over the past weekend that British aircraft leasing company, Falko Regional Aircraft Ltd had signed two letters of intent with the Canadian aircraft manufacturer to purchase up to 24 of the company’s C-Series planes highlights the challenges that Bombardier faces at the Farnborough show. The letters of intent are not firm orders at this stage, and further flight testing for the C-series, which is set to enter operational service in 2015, is on hold while the Montreal-based Bombardier continues to identify the cause of the May 29 power plant fire.

Orders to date of 203 of Bombardier’s C-Series fall short of the company’s stated target of 300 aircraft for the plane’s commercial debut, bringing into question the model that is at the heart of planned aerospace growth for this decade at the Canadian manufacturer of regional and business jet aircraft as well as a wide range of turboprop planes. With Bombardier advertising it’s C-Series as a rival to both Boeing Co and Airbus Group NV designs, to date only one of the20 largest airlines by traffic worldwide, has placed orders for the jet aircraft.

“Bombardier still has a long way to go in establishing industry support for its C- Series aircraft, a line that is central to the Canadian manufacturer’s growth strategies, but people tend to overlook that commercial aviations most successful and iconic models mostly had deeply troubled starts,” said Martin Blanke Equity Research Specialist at The Avanti Group.

According to a statement released by Falko, the company is focusing on the smaller jet in the C-Series line-up, the CS100 variant, with neither Bombardier nor Falko announcing a schedule for a definite order for the jets, which at $63 million per plane at their list price would generate a maximum sale value of around $1.51 billion.

“At the moment Bombardier shows so much promise that investors willing to hold over the next 8 to 12 months will see significant returns on their investment, that said the stock is quite active so a cool head is necessary to ensure the best returns, the easily panicked will not enjoy the ride,” concluded Martin Blanke Equity Research Specialist at The Avanti Group.

The Avanti Group is an equity research house providing research and analysis outsourcing solutions for institutional financial traders worldwide, founded in early 2003.
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Issued By The Avanti Group
Country Japan
Categories Business
Last Updated July 17, 2014