Bombardier, Inc.: 3 Airlines That Could Be the Next CSeries Customer

Bombardier, Inc. (TSX:BBD.B) is still drawing plenty of interest for the CSeries.

| More on:
The Motley Fool

It’s been well over a year since Bombardier, Inc. (TSX:BBD.B) last secured an order for its CSeries line of planes. But as the CS100 nears certification, Bombardier is claiming that airlines remain very interested in the CSeries.

Of course, the company is not predicting when the next order will arrive, nor which airline it will come from. From time to time though, we get hints about who the next customer will be.

On that note, below are three airlines that could be the next customer.

1. AirBaltic

Latvia-based AirBaltic already has an order for 13 CS300 aircraft, but it also has an option for seven more CSeries jets. And the company has made no secret it wants to order those additional planes.

While speaking on Friday, CEO Martin Gauss said, “We want to buy them. That’s what the business plan says, because it’s better for AirBaltic in the future if we have the chance to put the aircraft into our equity.”

This is not a done deal. AirBaltic is short on cash and needs over €100 million in financing to proceed with its planned purchases. And this will depend on an €80 million funding package from the Latvian government, which the country’s parliament is set to vote on next week. So far though, the prognosis looks good.

2. Porter

Like AirBaltic, Porter Airlines wants to buy CSeries aircraft, but it has some major obstacles to overcome before doing so. The company must gain approval to fly jets in and out of the Billy Bishop Toronto City Airport and must also gain approval to expand the airport’s runway.

These plans will require approval from the federal government, led by Justin Trudeau’s Liberal Party. But Mr. Trudeau is firmly opposed to any extension to the airport’s mandate.

There is some hope that Mr. Trudeau will change his stance once an independent study on Porter’s proposals is released. But until then Bombardier should not count on any firm Porter orders.

3. United Airlines

Thus far, Bombardier has been unable to secure any CSeries orders from a blue-chip North American airline. But that doesn’t mean these airlines aren’t showing interest.

The most promising prospect comes from United Airlines. According to multiple reports, the airline is said to be deciding between the CSeries and Embraer’s E195 planes for an order that would likely total 30 aircraft (with an option for 30 more). This would be a major victory for Bombardier if it won the order and could restart momentum for the CSeries.

Importantly, Boeing and Airbus are probably not in the running for this contract, since their planes are larger than what United is looking for. Given what has happened over the past year, this dramatically increases Bombardier’s chances.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Benjamin Sinclair has no position in any stocks mentioned.

More on Investing

thinking
Dividend Stocks

Should You Buy BCE Stock for its 8.6% Dividend Yield?

Down over 20% from all-time highs, BCE stock offers you a tasty dividend yield in 2024. But is the TSX…

Read more »

grow dividends
Tech Stocks

Why Nuvei Stock Jumped 26% on Monday

Nuvei (TSX:NVEI) stock saw shares surge today as the company confirmed it's in talks to go private through a buyout.

Read more »

consider the options
Investing

Better Buy for the Dividend: Enbridge or Nutrien?

Enbridge (TSX:ENB) and Nutrien (TSX:ENB) are great dividend plays for new investors going into April.

Read more »

Gold bars
Stocks for Beginners

TSX Materials in March 2024: The Best Stock to Buy Right Now

Materials have been quite volatile, though the price of gold has surged to all-time highs. That makes this stock a…

Read more »

grow dividends
Dividend Stocks

How Long Would It Take to Turn $20,000 Into $100,000 With TSX Dividend Stocks?

Here's how high-quality TSX dividend stocks and the power of compound interest can help grow your investments by 400% or…

Read more »

Happy diverse people together in the park
Tech Stocks

A Once-in-a-Generation Investment Opportunity: Artificial Intelligence (AI) Growth Stocks

Canadian tech companies like Kinaxis (TSX:KXS) are doing big things in AI.

Read more »

Paper airplanes flying on blue sky with form of growing graph
Dividend Stocks

2 Soaring Stocks I’d Buy Now With No Hesitation

These two stocks may be the most expensive on the market, but they're high for a reason! And I'm still…

Read more »

Arrowings ascending on a chalkboard
Investing

This Canadian Blue Chip Is Trouncing TSX Returns, and It Still Has Room to Run

Alimentation Couche-Tard (TSX:ATD) stock looks quite frothy heading into earnings, but there may still be upside.

Read more »