Business aviation weathers COVID-19 storm
After a turbulent start to the year as COVID-19 evolved into a full-blown pandemic, business aviation has emerged as sitting on the “luckier side” of the aerospace industry, according to the Interview. Several drivers are fuelling this segment’s recovery and growth, such as wealth creation, replacement demand and OEMs’ continued investment in new aircraft programmes.
Meanwhile, Bombardier’s strategic repositioning as a pure-play business aviation company was a “great decision”, the expert said. “They have an opportunity to now focus on becoming more lean, not just lean in the way of workforce, but lean in their processes and focus really on what they do well, which is customer service.” However, in terms of challenges, “controlling cost will be key”, particularly as the company previously relied on a more diverse offering.
On the subject of Alstom’s acquisition of Bombardier’s rail business, the specialist predicts that it will take a “good calendar year” before the restructure is completed. Following on from this, the Interview considered how Bombardier might compare with its main competitors such as Gulfstream, Textron or Dassault, as it establishes itself as a pure-play company. The company’s M&A outlook was also discussed.
Other Interview talking points included whether Bombardier will be able to continue repaying its debt over the next few years and a demand outlook for its core jet offerings.
To access all the human insights in Third Bridge Forum’s Bombardier – pure-play business aviation outlook Interview, click here to view the full transcript.
The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.
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