Bombardier, Inc. (BBD.B), The Boeing Company (BA): Emerging Markets Potential for This Aerospace Manufacturer

Bombardier’s advantage

In selling to Africa, airlines appear to have the most demand for smaller aircraft, and Bombardier can supply a broad range of these planes. With The Boeing Company (NYSE:BA)‘s smallest plane being the 737 and Airbus’ being the A318, both of the largest aircraft manufacturers miss out on much of Africa’s passenger aircraft demand. This is not to say that no The Boeing Company (NYSE:BA) or Airbus aircraft are sold, but the cost of large planes and the demand to fill them is often beyond the reach of many African carriers. As the African air travel market grows, larger planes will probably sell in greater numbers, but in the meantime Bombardier is able to establish relationships with carriers and sell carriers aircraft from the Q400 turboprops to the 160 passenger C Series model, the CS300.

But The Boeing Company (NYSE:BA) and Airbus are not just going to surrender Africa to Bombardier. Both of the large manufacturers see the potential in Africa and are selling planes to larger and better financed African airlines. As Africa grows as an air travel market over the coming decades, all aircraft manufacturers should benefit, but Bombardier’s combination of both turboprop and moderate sized jet offerings could attract many carriers to the Bombardier brand during their growth stage. When I purchased my Bombardier shares I mostly did so as a bet on the C Series, but the potential in the African market helps to strengthen my initial bullishness on Bombardier.

Alexander MacLennan owns shares of Bombardier. This article is not an endorsement to buy or sell any security and does not constitute professional investment advice. Always do your own due diligence before buying or selling any security.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 Emerging Markets Potential for This Aerospace Manufacturer originally appeared on Fool.com is written by Alexander MacLennan.

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