Company Expects Strong Bizjet Deliveries Over Decade

Bombardier Inc. says it is expecting a rosy future and forecasts demand for its aircraft remaining strong over the next 10 years.

Bombardier Aerospace, the Montreal-based company's air division, said in a forecast released Tuesday the corporate aircraft market is expected to see 9,950 deliveries, excluding very light jets, between 2007 and 2016. It is projecting market-wide revenues of $227 billion.

"Overall demand for aircraft in the segments in which Bombardier competes will remain strong," the company told ANN. "As well, there is a geographic shift towards international markets and a structural shift towards more cost-effective aircraft."

The company said it believes corporate aircraft makers will deliver about 995 business jets a year, up from the industry average of more than 572 jet deliveries a year from 1997 to 2006.

"Bombardier's forecast also indicates that primary market drivers continue to be positive or stable," the company said. It is factoring in an average order backlog of about two years and sustained US gross domestic product growth of three per cent for the next 10 years.

Bombardier's forecast also indicates that primary market drivers continue to be positive or stable. This includes strong order intake from international markets, now representing approximately 50 per cent of the total market and a number of new aircraft programs scheduled to enter service over the next two years. Also taken into consideration is manufacturers' current average order backlog of approximately 24 months.

Regarding its 20-year commercial aircraft market forecast, the company says demand for 20-to-149-seat commercial aircraft will reach about 11,200 new planes with a total value of $393 billion.

"Airline capacity is expected to double over the next 20 years. The trend towards larger aircraft, coupled with sustained higher fuel prices, will reinforce operators' requirement for modern aircraft with low operating costs," the company said.

Bombardier said it "continues to refine" its plan to build the new, Boeing 737-size C-Series aircraft, with a target date for entry into service of 2013 providing it decides to even build the plane.

Canadian transport officials told the company Monday they want Bombardier to modify its maintenance procedures for some of their regional jets due to problems with their flap systems, according to CBC News.

FMI: www.bombardier.com