Global Market For Regional Aircraft Worth $528 Billion US

Bombardier Aerospace released its annual aircraft market forecasts for the business and commercial aircraft markets on Wednesday, stating worldwide demand will help compensate for the expected decline in the US market for regional and business aircraft.

"As we transition to a more international customer base that features less emphasis on the US, as well as a structural shift towards larger and more cost-effective aircraft, Bombardier's key product families -- business jets and regional aircraft -- are expected to continue to generate strong interest across all markets," said Mairead Lavery, Vice-President, Strategy and Business Development, Bombardier Aerospace. "With its comprehensive portfolio of business and commercial aircraft that encompass state-of-the-art technologies and innovative design solutions, and its focus on customer services, Bombardier is well positioned for the future."

In the 10-year period from 2008 to 2017, Bombardier's Business Aircraft Market Forecast predicts that business aircraft manufacturers will deliver a total of 1,320 business jets annually in all segments it competes (from light to corporate airliner segments), a substantial increase from the industry average of over 620 business jet deliveries annually during the 1998 to 2007 period.

The total forecasted 13,200 deliveries over the 10-year period represent revenues of approximately $300 billion US for the industry.

Despite strong concerns over a possible downturn in the US and world economies that could create a decrease in overall orders over the next two years, Bombardier believes industry deliveries should keep increasing until 2017. In addition, based on the important surge in orders over the last few years and manufacturers' solid backlogs, the business aircraft industry is expected to maintain its positive trend in deliveries.

According to Bombardier's Commercial Aircraft Market Forecast, demand for 20- to 149-seat commercial aircraft is expected to reach approximately 12,900 new aircraft in the 20-year period from 2008 to 2027, an increase in demand from last year's forecast. Forecasted demand is valued at approximately $528 billion US.

The trend towards larger aircraft, coupled with sustained higher fuel prices, will reinforce operators' requirement for modern aircraft with low operating costs, according to Bombardier.

One in every three commercial flights worldwide are on regional aircraft, Bombardier notes. Increasingly, airlines are also looking "back" towards turboprop aircraft, such as Bombardier's own Q400, to fly routes more economically than their RJ brethren.

FMI: www.bombardier.com