Bombardier could make buys in emerging market push, executive says
Learjet maker Bombardier [TSE:BBD.B] could look to make service-related acquisitions at it expands in emerging markets, according to VP of strategy and international business development Michael McAdoo.
Over the next 20 years around half the demand for the Canadian group's jets will come from emerging markets, said McAdoo in an exclusive interview with this news service at the Farnborough International Airshow. The remaining demand will stem from the more established markets of North America and Western Europe, which have accounted for about 70% of demand over the previous two decades.
To expand in its five key growth markets of China, India, Russia, Latin America and Africa, the group "may make selective acquisitions from a service perspective," said McAdoo. He said market dynamics vary from region to region and that there was no single strategy approach.
When asked if there were ongoing talks with any potential partners, McAdoo said Bombardier was in continual discussions with various parties, including potential partners domiciled in Russia and China.
Bombardier makes business jets and small commercial aircraft, as well as trains. Its best known brand is its light jet range Learjet. In its business jet segment it produces the Challenger 350, along with the ultra-long range Global 7000 and the Global 8000. In commercial aircraft Bombardier makes turboprop and jet aircraft for short and medium haul markets.
When formulating strategy Bombardier considers its products and its geographical reach, according to McAdoo.
He said consolidation in the aerospace supply chain is expected to continue as companies integrate around systems and supply chains becomes globalized.
Bombardier has had a "very good show" so far, said McAdoo, and had secured 500 commitments for its C Series single aisle jet for the 100-149 seat market. Farnborough is one of Europe's biggest aerospace and defense events and is held in alternative years to the Paris Air Show.