Thursday, November 10, 2011

Bombardier's regional sales drought may be about to end

Bombardier Inc.'s regional aircraft sales drought may soon be coming to end, according to Cameron Doerksen, National Bank Financial analyst. The Montreal manufacturer has had a horrible year for regional jet and turboprop sales and has announced production rate cuts for both as a result.

At the end of July, Bombardier had a regional jet backlog of just 61 aircraft, 30 of which are from one customer, Air Nostrum. Its Q400 backlog sat at just 40. But Mr. Doerksen said Wednesday he believes there is potential that Bombardier's regional and Q400 sales dry spell is about to end. "We believe orders for Bombardier's regional aircraft, particularly the Q400, are about to pick up materially," he said in a note to clients.

There are several potential contracts that Bombardier's turboprop is in the running for, including from Russia's Aeroflot, Poland's EuroLOT, the Caribbean carrier LIAT, Porter Airlines, Chorus Aviation Inc. (the regional affiliate of Air Canada) and India's SpiceJet.

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