Every industry has a convention, and many have multiple conventions, but one convention tends to be more important than others. During the convention one result is multiple deals are signed or they are negotiated for months before, but they are signed at the convention. In the airline industry, the world’s largest air show is the Paris Airshow and/or Farnborough in Britain.

In an article by Tim Hepher and Joanna Plucinska of Reuters, the two biggest airlines in India – Air India and IndiGo signed multibillion dollar deals for passenger planes to be provided by Airbus and Boeing. The 2 companies dominate the marketplace or are essentially a duopoly in supplying civilian passenger planes. Air India signed a deal for 500 planes and IndiGo signed a deal for 470 planes. This should tell you something about the market in India. It is the world’s fastest growing aviation market. The list price of 500 planes is about $70 billion, but companies receive discounts for large orders.

Boeing and Airbus are similar to the automakers, they do not make all the parts but supplier companies send them the parts and the companies put together a plane. For example what kind of engine is in the plane? Signing contracts for 1,000 planes means the factories will be busy for the next few years, which means the supplier companies will be busy for the next few years.

The other aspect of the show is defense suppliers and deals were signed for example France’s Thales will supply 13 long range air surveillance radars.

Linking to dividend paying stocks, for your investments part of your homework is to determine where the most important convention is held that public companies announce deals. Then you can either attend or watch the results of the convention. If the results are optimistic for your investments, you can continue to hold and see the results translate to profits and the ability to pay dividends. If the results from the most important convention are downbeat, then you maybe to buy more shares at lower prices in the anticipation of good results in the future or find other alternatives.

There are more questions than answers, till the next time – to raising questions.