Bombardier, Inc. (BBD.A), The Boeing Company (BA): Can You Trust an Aircraft Manufacturer?

Followers of the C Series progress will note that the maiden flight was supposed to have happened by now anyway. What was going to be a Nov. 2012 flight is now scheduled for the last week of June. Bombardier, Inc. (TSE:BBD.A)’s executives continue to say the C Series is on track for this flight, and with the date so close, it appears Bombardier, Inc. (TSE:BBD.A) may actually be able to do it.

Flight delays

The latest aircraft developed by Boeing, Airbus, and Bombardier, Inc. (TSE:BBD.A) have all promised tangible benefits when compared to existing aircraft. However, repeated delays at all three companies have caused airlines to lose trust in aircraft manufacturers. Bloomberg quoted a senior VP of Bombardier, Inc. (TSE:BBD.A)’s commercial aircraft division as saying “There is no faith, trust or belief in anything an airframe maker says today because of the program performance,” to reflect this trust deficit surrounding aircraft manufacturers. Will airlines continue buying planes? Well, it’s really not an option for them, and with only a few main manufacturers airlines also have limited choice in the matter. But some have speculated that these continual delays will lead to airlines delaying their orders. And in the end everyone may just experience more delays.

Alexander MacLennan owns shares of Bombardier. The Motley Fool has no position in any of the stocks mentioned. Alexander is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Can You Trust an Aircraft Manufacturer? originally appeared on Fool.com is written by Alexander MacLennan.

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