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BBA Aviation set to fly

SHARE TIP: BBA Aviation (BBA)
January 28, 2011

BULL POINTS:

â–  Recovery in business flying

â–  Growing popularity of private jets

â–  Decent dividend yield

â–  Potential for consolidation

BEAR POINTS:

â–  Pure exposure to the US economy

â–  Sizable debt pile

IC TIP: Buy at 220p

In Britain, private jets tend to get mentally pigeon-holed next to bankers' bonuses and jewel-encrusted skulls by Damien Hirst - tasteless emblems of probably ill-gotten gains. Not so in the US. There, private jets are merely the most convenient way for groups of businessmen to get around. They are more expensive than commercial business-class flights, but that’s generally offset by the time saved and the benefit of avoiding draconian airport security measures.

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