Bombardier targets Turkey as ‘breakout’ market
The region is expected to take delivery of some 1,185 business jets over the next 20 years.
MONTREAL—Bombardier Aerospace is heading to an airshow in Istanbul next week as it continues to try to land aircraft orders in developing markets such as Turkey, where it sees “breakout” potential.
The Montreal-based division of plane and train giant Bombardier Inc. is bringing its Learjet 60XR, Challenger 605 and Global 6000 business jets and commercial aircraft executives to the four-day biennial show.
Bombardier has recently boosted its sales force in developing countries and sees the Middle East and Turkey as opportunities. The region is expected to take delivery of some 1,185 business jets over the next 20 years.
The world’s third-largest aircraft manufacturer will also promote its Q400 regional jets and 110- to 149-seat CSeries plane, which recently took its first virtual flight as it prepares for delivery in 2014.
Bombardier has delivered or received orders for 789 commercial aircraft in the Middle East, Africa, Europe, Russia and the CIS, including 487 in Europe. Turkey’s Atlasjet signed a letter of intent to acquire 10 larger CSeries jetliners and has options for five more planes.
It also has 19 business aircraft in operation in Turkey, 72 in the Middle East, 60 in Africa and 46 registered in Russia and the CIS. Europe is the second-largest market after the U.S. with 56 business jets. Bombardier has received orders this year for 174 business jets.
The manufacturer forecasts the industry will deliver 24,000 aircraft valued at $648 billion over the next 20 years in the segments in which it competes.
Kevin Chiang of CIBC World Markets said investors are attributing almost all of Bombardier’s value to its railway division. Little is being attached to aerospace, let alone the CSeries, which some view with skepticism because of delays faced by Boeing and Airbus.
“The market is being overly punitive,” Chiang wrote in a report. “With the first flight around the corner, we believe the Boeing discount being applied to Bombardier will eventually unwind.”